Undergraduate Thesis Bachelor of Science in Business Administration Major in Financial Management University of Rizal System Binangonan 2023

Includes bibliographical references

This study primarily focused on the Microfinancing As Non-Government Organizations' Instrument In Poverty Reduction: A Tool For Family Financial Plan. May-iba Teresa, Rizal was chosen by the researchers as the setting of the study because it is relevant to the study and there's a lot of low income households who joined microfinance institution. The data was acquired using a questionnaire checklist that was separated into three distinct parts. The first part included information about the profile of the respondents' age, sex, éducational attainment, civil status, monthly family income, other source of income, total number of family members, highest loanable amount, frequency of loan per year, and years of membership. The acquired data was statistically processed, tabulated, evaluated, and analyzed using frequency, percentage, and rank distribution. The second part demonstrate the extent of the respondents perception with regards to microfinancing as non-government organization's instrument in poverty reduction with respect to Education, Savings, Effects on Income, and Loan for Housing and the data was analyzed using the mean. And the third part contains the open ended question which was used to answer the focus group discussion. Based on the findings of the study, it revealed that among 84 members, majority of them are in the age of 35 years old and below. And the 46 years old and above members are more stable since they have been participating in microfinance for a longer period of time and have built up funds. In terms of sex, female are most of the members of microfinancing because women are in charge of budgeting the money that their partners make. In terms of education, most of its members were highschool undergraduate. Among the 84 members, 65.5% are married individuals. In terms of monthly family income, 42 out of 84 members most likely to increased their monthly family income after they began borrowing money from lending institution. In terms of other source of income, most of the members have other source of income which is sari-sari store because they are able to manage the money they borrowed, with the help of the lending institution's assistance on how to use it. In terms of highest loanable amount, most of the members loaned greater amount of money. It shows that the frequency of loan per year are mostly every 6 months because they frequently pay off their debt before taking out another loan, it is clear that they are limiting the number of loans they take out each year. In terms of years of membership, it shows that even in the short period of time of being a member in the said lending institution, there is already an improvement in their standard of living. The respondents perceived that effects on income was the top in terms of microfinancing as non- government organizations instrument in poverty reduction because among the four variables it gained a highest total weighted mean of 4.51 and was verbally interpreted as "strongly agree". While the variable "Loan for housing" was ranked second because it gained a general weighted mean of 4.38 and was verbally interpreted as "strongly agree". And "Savings" was ranked third and it gained a total weighted mean of 4.35 and the verbal interpretation is "strongly agree". Lastly, education with a total weighted mean of 4.23 and was verbally interpreted as "strongly agree". The data revealed that there is no significant difference in the extent of the respondents' perception of microfinancing as a non-government organization's instrument in poverty reduction in terms of Monthly Family Income and Frequency of Loan per Year. It also revealed a significant difference in the extent of the respondents' perception of microfinancing as a non-government organization's instrument in poverty reduction based on age, educational attainment, civil status, other source of income, total number of family members, highest loanable amount, and years of membership based on the tested hypothesis on the profile of the respondents. The researchers recommended for ASA Philippines that they must maintain and continue what they are doing when it comes to helping their members to provide personal loans and other programs such as educational assistance, Conducting seminar/Livelihood training, Capital Build-up, and Housing Loan. They must also continue to provide a good quality of service such as quick application process, smaller interest, and an accommodating staff. They must also cooperate with the Local Government Unit to sustain the agricultural sector. And the Local Government Unit must promote backyard farming, poultry, piggery, and other agricultural activities to the residents of the area. The researchers also recommended for the existing members and the future member of the said financial institutions that they must apply for a loan only when they truly need it, not just to satisfy their desires, as this would just add to their financial load. And they must use the money they have loaned wisely as capital for their business.