Pagasa Philippines Lending Company Inc. turns 10 this June.

In June 2007, ASA International established PPLCI, its first affiliate outside of Bangladesh. PPLCI was registered in the Securities and Exchange Commission (SEC) as a Lending Company providing microfinance loan services to the poor under the Lending Company Regulation Act.

Expansion of Operations

Since its establishment, Pagasa has grown into a formidable microfinance industry player providing quality loan services to 262, 448 members in 16,373 groups in 250 branches nationwide.

With a  total loan outstanding of PhP 1,709,544,497, Pagasa has come a long way since it started its operation in 2007. It is nearing its initial goal of setting up 350 branches to serve half a million people by 2020. In the first quarter of 2017 alone,  eighteen (18) new branches were opened: fifteen (15) of which are PPLCI branches and three (3) are PMPFI branches.

Social performance

Cognizant of its nature and mandate as a microfinance company and guided by its social mission of “establishing a poverty-free society through microfinance,” Pagasa has been making strides in ensuring that its operation, ultimately serve the poor as it grows its portfolio and expands. Social performance management is just as important as the financial performance management aspect of the company.

In this spirit, the company has committed to uphold the Universal Standards of Social Performance, SMART Campaign’s Client Protection Principles, and just recently, affirmed its commitment to social and environmental governance through a set of policies directed towards protecting the environment; elimination of sexual harassment; preparing for emergencies; upholding integrity through identification of exclusion list, fighting anti-money laundering, and upholding whistle blower rights; eliminating discrimination; and developing proactive engagement with its stakeholders.

These policies are directed towards making the management more responsive not just to the clients but to the employees as well.

In 2016, Pagasa also intensified its corporate social responsibility with the initial implementation of the One Scholar per Branch Program that benefited 30 children of our members. The beneficiaries were given scholarship grant that helped them get through the final year of their studies in college or in a vocational course.

In 2017, the program was expanded and the company hopes to provide scholarships to 100 more members’ children.

A decade of development

All these efforts are directed towards ensuring that our client, women and men alike, are served better. A decade is a long time. The challenges faced by the company in making a dent in the Philippine microfinance industry have been plenty, but, PPLCI brave the challenges with the entrepreneurial poor Filipinos who hope with us in mind. Now more than ever, PPLCI is steadfast in fulfilling its social mission of establishing a poverty-free society through microfinance, through decades to come.

Join us in the continuing journey of the company to serve the poor and the marginalized. Join us as we create opportunities for the poor in decades to come.

#PPLCIat10

Eighteen (18) new branches were opened during the first quarter of 2017, fifteen (15) of which are PPLCI branches and three (3) are PMPFI branches.

In North Luzon Division, new branches were opened in Tuguegarao – Team 1 last January 1, Ilagan last February 1, and Tuguegarao – Team 2 last March 1.  These branches are under PMPFI Ilagan Region.

In South Luzon, PPLCI branches were opened in Daet last April 1, Bulan, Labo , and Sorsogon City last March 1, Calabanga last February 1, and Sipocot last January 1. The opening of these branches signify the continued growth and presence of Pagasa in the Bicol Region having a total of 13 branches established from 2016. In light of the new developments, a restructuring of region has also ocurred. Bicol now has three regions, Sipocot, Sorsogon and Ligao.

Eight (8) new branches have also been opened in Visayas adding to the twenty-five branches opened last year. This marks Pagasa’s entry into Cebu and Negros Oriental.  The new branches in Visayas are Dumaguete opened on January 1, Bugasong on January 4, Guihulngan, Bayawan and Bais opened on February 1, and Tanjay, Lapu,-Lapu and Cebu opened on March 1.

From twenty-five (25) branches as of December 2016, Visayas Division now has thirty-three (33) branches. 2 new regions were also created, Cebu and Dumaguete to better manage the operations of the newly opened branches. All the new branches fall under Dumaguete  Region except for Lapu-Lapu and Cebu which falls under Cebu Region and Tanjay which falls under La Carlota.

Meanwhile, in South Mindanao, Calumpang – Team 2 was opened last January 1 making the total number of branches to forty-three (43).

This expansion is well within the goal of reaching out to more entrepreneurial poor in the region. As per management plan, twenty-three (23) new branches will be opened in 2017. At present, PPLCI and PMPFI have a combined 260 total number of branches nationwide. It is hoped that at the end of 2017, the total number of branches will be two-hundred sixty-five (265).

Pagasa Philippines awarded twenty-three (23)  scholars a grant of PhP 20,000.00 each for the second semester of 2016-2017 for its newly-launched “One Scholar per Branch Program.”

The scholars were identified from among 30+ nominations who have met the criteria from across the branches all over the Philippines. The goal of the program is to help borrowers provide for the education needs of their children.

North Luzon scholars are Camille Manalastas (Gapan) and Renzol Timbol Lugtu (Mabalacat). For NCR: Jay-Arr P. Dasigan and Mark Lester Pidlaoan (Novaliches), Rick Charles R. Basilio (Paco), Helen Asis Rieza (Pasig Rosario), Ma. Delmar Bigata (Taytay) and Mario Maligon Javier (Valenzuela)

South Luzon scholars are Glaine Daly C. Estrella (GMA-Cavite), Cathlyn G. Ordonez (Imus) Donald Kandog and Marian Joyce Manalo (Las Pinas), Merck Steven Lu (Lucena), Nicky C. Salvador (Naic), and Micko Panganiban (Silang).

North Mindanao scholars are  Shiela Mae Villorejo (El Salvador, Rapha Jamero (Carmen), Edmon Plaza Cuares (Trento) and,  Bernardo B. Sabuero (Cabadbaran).

South Mindanao scholars are Jan Paul Satam (Kidapawan), Vera-Ellen Diamante (Padada), Irish Olenares (Surallah) and Josie Marie Shaira Maghari (Tibungco).

Among the 23 scholars, majority are taking courses in Education,  Economics and Management, Information Technology, and Engineering. Few are into Communication, Midwifery, Biology and Criminology.

Josie Marie Shaira Maghari, daughter of member Maria Rossini Maghari of Tibungco branch wrote a heartfelt letter as part of the application. An excerpt reads “(Pagasa) has been a big help for me and my family especially for my…education. Pagasa has been a very big contributor to our success, helping my family throughout the years…Thank you Pagasa for the continuous help and inspiring people to fulfil our dreams even with financial difficulties.”

Each branch in operation for at least three years with clients of 1100 and above were asked to nominate a scholar. The nominees are sons or daughters of clients who have been with Pagasa for at least three (3) years with good loan repayment records. The nominees are graduating college or technical-vocational students with good/passing grades.

The Client Services Committee, in-charge of the program, hopes to receive more nominations completing the 50 scholars originally targeted. Pagasa has allotted PhP 2 million for the program.

Pagasa Philippines Lending Company Inc. wishes all our women members, staff and officers Happy International Women’s Day 2017!

Sharing with you a poem by Nancy Smith entitled “For Every Woman” for today’s celebration:

                                               For Every Woman

                                     By Nancy R. Smith (copyright 1973)

For every woman who is tired of acting weak when she knows she is strong,

there is a man who is tired of appearing strong when he feels vulnerable.

The dream team. Elma’s husband (left) and daughter-in-law help her in managing the store.

Aside from the store/eatery, Pagasa has also helped her and her family acquire some investments. Because of the loan she received from Pagasa, they were able to purchase a motorized tricycle which his husband drives part-time in the afternoon after his cooking duties in the store. They earn extra income from this as well. A single motor has also been purchased which they use when going to the market to purchase supplies for the store. Their house has also been built in 2016 because of the growing income of the business and some allocations from her loan. She spent 40000 for the house to be built. Just in January, her eldest son got married, a celebration that would have not been possible if not for the steady income and cash flow she generates from the business.

“Without Pagasa, I wouldn’t have been able to set up my store, I wouldn’t have a motorcycle and a house. I wouldn’t even have hope,” she said.

Hope for the future

When asked how she was able to manage all the expenses, she said it’s a matter of setting one’s mind to the goal and to veer away from distractions. “Don’t use the money for gambling or for alcohol. When you engage in gambling, you get nothing in return. If you take loan just to finance gambling or your vices, you’ll be in trouble paying up your loan.”

In two years, she hopes to further expand her business. They just transferred the store to a bigger space in February. She hopes to also set up a barbecue stand beside the store. Just last November she renewed for a loan of thirty thousand which she used for the transfer and further expansion of the business. She looks to the future with hope. “In the past our life was difficult. We’re ok now that I am able to take loan from Pagasa. It helps us a lot,” she said.

• Typhoon Pablo– Typhoon Pablo hits the Mindanao Region on December 2012 leaving more than 50,000 families homeless.

Eight (8) branches of the Corporation had been affected mainly by the typhoon- Iligan 1 & 2, Tandag, Cagayan de Oro 1 & 2, Nabunturan, Monkayo and Kapalong, and some areas in other branches.

The Management has approved the adjustment of amortization to all affected borrowers on December 2012.

A wrecked school in Cateel, a town that was devastated by the typhoon’s strong winds. The storm destroyed thousands of homes, and many families are now living in cramped, temporary accommodations. PAGASA Lending is not the owner of this picture.

A truck passes among dead coconut trees destroyed by Typhoon Bopha. The typhoon, which hit on December 4, has caused major damage to infrastructure and agriculture in the southern Philippines. PAGASA Lending is not the owner of this picture.

A woman looks for materials as she helps her husband rebuild their house in Cateel. PAGASA Lending is not the owner of this picture.

Children line up on the road to beg after the typhoon left them homeless. PAGASA Lending is not the owner of this picture.

Giant waves and flashfloods caused by the typhoon extirpated concrete tombs in Cateel. PAGASA Lending is not the owner of this picture.

•  Flood in Mindanao– Mindanao Region has yet to recover from the devastation of Typhoon Pablo on December 2012 which killed hundreds of people and leaves more than 50,000 families homeless.

Sometime on January 2013, people of Mindanao experienced another devastation of nature through flooding and landslide affecting the borrowers of the Corporation in several branches.

• Fire Razed at Cainta- On January 17, 2013 a fire broke out in a residential area at Cainta that razed some 200 residential houses.

About six (6) groups of Pasig Rosario Branch are located in the affected area which borrowers/members’ houses and businesses were burned and now temporarily staying at health center and covered court.

With this incident a one- month moratorium of amortization is given to all affected members.

The Philippines remains a global leader in microfinance, with an international report placing the country among the top five in overall microfinance business environment rankings.

The country ranked 4th out of 55 in the Economist Intelligence Unit’s “Global Microscope on the Microfinance Business Environment 2012,” jumping two places from ranking 6th last year.

This, as it highlighted significant changes which are seen to promote the development of an enabling microfinance environment.

These include central bank Circular No. 744, which redefined microfinance loans to include amounts up to P300,000 from the previous P150,000.

Also noted was the House approval of a draft law which allow foreign ownership of up to 40 percent in rural banks.

The country’s score improved by 4.8 points to 63.3 index points calculated based on its performance in regulatory framework and supporting institutional framework.

The Philippines was one of only three Asia countries in the top 10 of the report, which covers a year’s period to June 2012.

This year’s overall ranking was topped by Peru, Bolivia and Pakistan. Below the Philippines, meanwhile, were Kenya, El Salvador, Colombia, Cambodia, Mexico and Panama.

In terms of regulatory framework, the Philippines shared the top spot with Peru, scoring 80 points.

“The Bangko Sentral ng Pilipinas (BSP, the central bank) continues to promote an enabling environment for microfinance, seeing it as one of its key poverty reduction efforts,” the report said.

A number of public sector institutions meanwhile provide wholesale funds to support the sector’s growth, it added.

Although improving by five points, the Philippines posted a slightly weaker performance, scoring 50 and sharing the 15th place with Brazil, Nicaragua and Uruguay.

“The industry remains relatively fragmented, as there is no one dominant institutional type, set of institutions, or network and multiple regulatory and supervision regimes owing to the diversity of the types of service providers,” the report said.

The country’s weak showing in this indicator may also attributed to a low “stability” score, particularly in terms of “political stability.”

http://ph.news.yahoo.com/ph-among-top-countries-in-microfinance–says-study.html

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