Barangays’ microfinance group eliminates loan sharks
ANDA —After only a year, the Anda Self- Help Microfinance not only ended the dependence of residents on loan sharks but boasts of its P1.2 million revolving fund for its members.
It took the Department of Social Welfare and Development’s (DSWD) cash-for-work program launched by the Municipal Social Welfare and Development Office (MSWDO) to make a difference for the residents who were organized into self-help groups in the town.
Cash-for-work project included climate change mitigation activities such as mangrove planting, dismantling of illegal fish pens or structures, which were done in Anda, said Darwin Chan, information officer of DSWD regional office.
He said MSWDO requested last year for the cash-for-work program for the indigent families where portion of wages were allotted to form capital for the microfinance institution.
“Their seed capital from the cash-for-work was P247,000, and each member allotted P100 from their wage,” he said.
According to MSWDO officer Jowey Celzo, the SHGs formed in two barangays in 2010 to provide an alternative to loan sharks.
“Each SHG has 10-15 members that contributed to raise enough capital for their micro-credit activities charging only 1.5 % interest and the income earned was distributed equally to the members.,” Celzo said.
He said the SHG also collects P20 as a weekly special savings that they could withdraw for emergency use.
He disclosed the seed capital already earned more than PHP100,000, while their revolving fund already amounts to more than PHP1.2 million.
Based on the two barangays successful experience, the SHG practice was extended to all 18 barangays.
Membership in Anda SHG Microfinance is already more than 2,400.
Aside from providing investment and production credit for its members, the group is also involve in other livelihood activities such as fish processing.
To preserve its gains, the group plans to register with the Security and Exchange Commission this year. (Helen Martin)
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