PERCEIVED EFFECT OF MICROFINANCE SERVICES IN SAN JOSE, OCCIDENTAL MINDORO

Abstract

This study aimed to determine the role of microfinance institutions (MFIs) in alleviating poverty among households of San Jose, Occidental Mindoro. Particularly, this study aimed to: (1) characterize microfinance household clients in San Jose, Occidental Mindoro, in terms of: socio- demographic, economic and communication; (2) determine the driving forces of clients to avail microfinance services; (3) identify the household-clients’ frequently availed/accessed/paid microfinance services; and (4) determine the household clients’ perceived effect of microfinance services in terms of: economic, social and personal. A total of 200 randomly selected household MFI clients, both from rural and urban barangays of San Jose, Occidental Mindoro were interviewed for this study. Descriptive statistics such as mean, weighted mean, frequency and percentage distribution were used in analysing and presenting the data. The results of the study revealed that most of the respondents are female, married and literate. They have other sources of income. Among the most common driving forces of household clients in availing microfinance services are financial security, health-related concerns and education. The frequently availed services of household clients are savings, insurance and loans and their most common microfinance service provider is the Center for Agriculture and Rural Development Incorporated (CARD Bank). The household clients experienced reduced poverty and increased acquisition of assets as economic effect of microfinance services, while they had improved lifestyle and improved relationships with other people as social effects and increased self-confidence and fulfillment as personal effects of microfinance services.