The loan program aims to improve the personal and social value of the clients in the family and in the community by involving themselves in income generating activities through the process of providing micro-credit loans for additional capital, reduce poverty through job creation in poor communities, help low-income people to overcome the dependency on money lenders (5/6 or Bombays) and eventually develop capabilities and economic independence of borrowers.
Loan Products – PPLCI currently offers three (3) credit programs; Small General Loan, Small Business Loan and Small Entrepreneurship Loan. All loans have 15% interest and are payable for twenty-three (23) weeks or six (6) months. Loanable amount is based on the borrower’s capacity to pay. Loans are offered to individuals but borrowers are encouraged to be part of a locally-organized groups to avail of the loan products.
Loan Collateral Build-Up (LCBU) – Members are encouraged to deposit their weekly LCBU of P20-P100. This serves as a non-interest bearing collateral to the loans availed by the clients as well as an alternative capital and investment when client decides to withdraw from the loan program. During the loan term, borrowers can withdraw from their LCBU during group meetings provided that they maintain LCBU balance of at least 10% of the loaned amount.
- No hidden charges
- Lower interest rate
- No upfront fee/deduction
- No other charges such as service fee, BARB fee, loan application fee, etc.
- Lifetime membership fee of P 50.00 only
- Different loan products based on business and special loan program in case of emergency
- No double/advance payment during holiday
- There is moratorium/excuse from amortization payment during emergencies
- Short group meeting time (maximum of 30 minutes)
- Opportunity for early loan renewal
- No collateral
- Few and affordable requirements
- Monthly update of borrowers account statements through SMS
- Transparent account and policy
- East payment terms and processing
- Graduating opportunity for clients with good business
- No group liabilities (individual approach)
- Door step service
- Flexible LCBU deposit provision
- Door step withdrawal facilities in case of emergency