EFFECTS OF THE PRODUCTS AND SERVICES OF MICROFINANCE INSTITUTIONS ON THE ECONOMIC DEVELOPMENT OF THEIR MEMBERS IN VINTAR, ILOCOS NORTE, PHILIPPINES
This study determined the effects of the products and services of Microfinance Institutions on the economic development of their members in Vintar, Ilocos Norte, Philippines.
The descriptive correlational research design was adopted using a survey questionnaire to gather data. A total of 603 respondents were involved. They were taken from the members of two Microfinance Institutions (CARD Bank Inc. and ASA Philippines Foundation Inc.,) in Vintar, Ilocos Norte, Philippines who have been a member for at least two years. The study was delimited into the top three barangays with the most members which are composed of Barangays Parut, Alejo Malasig, and Pedro F. Alviar. Frequency, percentage, weighted mean, Chi-square test, and Pearson r of correlation were used to analyze and interpret the data gathered.
The following were the highlights of the findings of the study. The MFIs are giving their members quality products offered on loan applications and loan features as manifested by a very satisfied and satisfied rating of their members, respectively, as it is significantly and positively related to their economic development. The MFI members’ economic development in terms of financial, personal, and business status are significantly and highly related to their level of satisfaction with the customer services offered by the MFIs. The MFI’s services offered have met the satisfaction level of their members as expressed by a rating of very satisfied and satisfied on customer service and non-financial services, respectively.
It was recommended that: On the part of Microfinance Institutions, they should consider the financial status of their members in terms of the reasonable service fee, and allow repayment and reasonable penalties for nonpayment/default to lessen their burden on their expenses, microfinance institutions should also conduct community development projects in different municipalities to increase their members' economic development, and microfinance institutions should provide business training to improve or expand their members’ business strategies. On the part of the members, they should pay their payments on time and actively participate in the activities of the MFIs. On the part of future researchers, they may also conduct studies in other places that offer products and services of Microfinance Institutions, they may also consider other variables, such as their incentives and benefits.
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