1. Client Over-indebtedness: The KASAGANA-KA Experience
Microfinance Council of the Philippines
Hyatt Hotel, Manila
27 July 2012

2. Reasons (clients’ perspectives): from existing literature
Loan is inadequate (following loan cycle formula) for actual business requirement
Need to repay existing loans
Need funds to finance emergency and other non-business related expenses
A family member or friend needs funds

3. Reasons (MFI perspective): from existing literature
Has to meet target outreach
Clients do not reveal loans from other providers
Simply follow loan cycle formula
Incentive system is based on reaching targets (outreach, portfolio)

4. Interventions
Offered another loan window not following cycle formula; only for clients who have shown discipline and whose cash flow can afford the increase
Designed multiple loan products addressing needs of clients not just for business capital
Ingrained in staff the culture of service and not fund-pushing

5. Interventions Continuously innovate products and services
Emphasize client protection strategies (careful screening, maximum debt exposure level, train staff on cash flow analysis/client repayment capacity assessment; monitor multiple borrowing among clients; help clients in times of calamity)

6. Hagdan-hagdan ng pag-unlad
K-Negosyo (W2), K-Bahay, KJSP
K-Edukasyon,
K-Kalusugan (W2), K-Unlad, Loyalty Rebates
K-Negosyo (W1), LRF, K-Impok,
K-Kalusugan (W1), K-Seguro (life, CLIP),
K-Suporta, K-Benepisyo,
Center Officers Rebates

7. Networking as a Core Strategy
National Government Agencies
Local Government Units
Health providers
Academe
Other MFIs
Business Corporations
Other NGOs

8. Increase Valuing for the NGO-MFI
Regular road shows with Center Chiefs (CEO presents and explains annual theme and FS of NGO-MFI)
High interest rates for CBUs
Being an MFI CB means FUNDS, FRIENDS and FUN!