CASH-FOR-WORK PROJECT. The members of Anda Self-Help Group Microfinance earn their share in the capital of the institution through the cash-for-work project of the Department of Social Welfare and Development. The group started with a PHP247,000-seed capital last year or PHP100 generated from each member, which grew to PHP1.2 million in revolving fund. (Photo courtesy of the Department of Social Welfare and Development Ilocos region)
ANDA, Pangasinan -- The Municipal Social Welfare and Development Office (MSWDO) here, through the Department of Social Welfare and Development’s (DSWD) cash-for-work program, created a microfinance institution among the self-help group (SHG) to discourage patronage of loan sharks, an official said on Wednesday.
Darwin Chan, information officer of DSWD office in Region 1 (Ilocos), said the MSWDO asked their office last year for a cash-for-work program in the town for the indigent residents who are already members of an SHG, while some are fisherfolk and farmers, among others.
“Cash-for-work project include climate change mitigation activities such as mangrove planting, dismantling of illegal fish pens or structures, which were done in Anda,” he said in an interview.
Chan disclosed that portion of wages of the workers for the cash-for-work projects was allotted to form capital for the microfinance institution.
“Each member is allotted PHP100 from their wage in the cash-for-work project, which totaled PHP247,000 that became their seed capital,” he said.
Anda MSWDO officer Jowey Celzo said they have formed the SHGs with two barangays in 2010 to stop the practice of borrowing from loan sharks or institutions with “very high interest, which was very prevalent in the town.”
“Each SHG has 10 to 15 members wherein they collected from among themselves a certain amount to have a capital for their micro-credit activities. The interest is just 1.5 percent and at the end of the year, the total income from the interest of their micro-credit activity is divided among the members,” Celzo said in a separate interview.
He said the seed capital already earned more than PHP100,000, while their revolving fund already amounts to more than PHP1.2 million.
Celzo said they also collect PHP20 as a weekly special savings that they could withdraw when emergency cases arise.
“From two barangays, the SHG practice was extended to all 18 barangays,” he added.
Following their partnership with the DSWD last year, the active members of the Anda SHG Microfinance has reached more than 2,400.
Aside from providing investment and production credit for its members, the group is also involved in other livelihood activities, such as fish processing.
“This is a big help to them because through this, they are able to provide for the basic needs of their family,” Celzo said.
He added that the group is also planning to register with the Securities and Exchange Commission sometime this year. (PNA)
