Perceived contribution of micro-credit products on the financial and social condition of its members in Tagaytay City / by Judy Ann M. Aala, Rafael M. Aveo, and Perlyn V. Cornejo.

Thesis (Bachelor of Science in Business Management Major in Financial Management) Cavite State State University.

Includes bibliographical references.

College of Economics, Management, and Development Studies (CEMDS)

AALA, JUDYANN M., AVEO, RAFAEL M. and CORNEJO, PERLYN V. Perceived Contribution of Micro-credit products on the Financial and Social Condition of its Members in Tagaytay City. Undergraduate Thesis. Bachelor of Science in Business Management, major in Financial Management. Cavite State University, Indang Cavite. May 2017. Adviser: Prof Zandro M. Catacutan.
This study was conducted to determine the perceived contribution of micro-credit products on the financial and social condition of its members in Tagaytay City, Cavite. The study aimed to determine the socio-economic profile of the members, characteristics of micro-credit products availed, describe the financial and social condition of members prior and after opening capital build-up account, ascertain the relationship between the socio-economic profile of the members and the characteristics of micro-credit products availed and to identify the problems encountered by the members in availing micro-credit products. The data used in the study were obtained through personal interview with the aid of questionnaires. Data were analyzed using descriptive statistical tools such as mean, frequency count, range and percentage. T-test was used to describe the financial and social condition of members prior and after opening capital build-up account. Likert scale was used in determining the perceived contribution of micro-credit products to its members. The results of the analysis showed that majority of the borrowers were female. The average ages of the residents were 44 years, and majority of them were married. All of the participants had attended formal education. Majority of the participants had a monthly income that ranged from P 1, 000 to P10, 000 with an average of P10, 070.47. There was an average of five members per family of the borrowers.
The study showed that most of the members availed sikap loan to purchase equipments and assets to use in their business, buying raw materials, purchase of office supplies, etc. The micro-credit products they availed were being paid on a weekly basis. The result shows that micro-credit products had a positive implication on the financial and social condition of the member such items were basic needs, education, medical and health care, transportation and communication, business, income and savings. Sex was found to be significantly related to the time to maturity of the loan which means that women are more often financially responsible with better repayment performance than men. Monthly income was found directly related to the number of micro-credit products availed which means the members with high income were capable to avail multiple micro-credit products while the members with low income were not capable to avail multiple micro-credit products. Monthly income was also found to be significantly related to effective interest rate of the micro-credit products availed by the participants which means that the participants with high income can avail multiple micro-credit products with low interest because they have high capacity to repay and shorten the maturity of the micro-credit products they availed.

Submitted to the University Library T-6960