Microfinance Institutions: Achievements and Challenges in the Second District of Albay

Authors

  • Racie R. Lorenzo Postgraduate Master Program of Master in Management Major in Business Administration, Faculty Staff of Forbes College Legazpi City, Albay, Philippines https://orcid.org/0009-0006-3883-5638

Keywords:

Alleviation, financial sustainability, nonviable, repayment, Pearson product moment correlation and T-test

Abstract

Achievements and challenges of microfinance institutions change the operation, products, and services to cater to the needs of low-income people. A nonviable microfinance institution will have problems with recruitment, repayment, and client retention. The client of the microfinance institution has no alleviation in their income, no change in their social status, and becomes poorer. This study determined the achievements and challenges of microfinance institutions in the Second District of Albay. The research design used in the study was quantitative, qualitative, pearson product moment correlation and t-test methods.

The study revealed that not all microfinance institutions in the Second District of Albay offered loans, savings, insurance, and other non-financial services to their clients. The financial sustainability of microfinance institutions in the second district of Albay is a problem when it comes to providing loan products and other services to clients. It affects the repayment performance and income alleviation of the clients. The analysis of the relationship between achievements and challenges in operation failed to show any statistically significant relationship for the total sample. Further analysis found no significant relationship between the variables in operation and products and services. Research on the market, institution, and client and having a strategic plan are important to microfinance institutions in diagnosing the problems that they faced and forecasting what will occur in the future.

References

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Published

2023-06-18

How to Cite

Racie R. Lorenzo. (2023). Microfinance Institutions: Achievements and Challenges in the Second District of Albay. International Journal of Sciences: Basic and Applied Research (IJSBAR), 68(1), 268–284. Retrieved from https://www.gssrr.org/index.php/JournalOfBasicAndApplied/article/view/15605

Issue

Vol. 68 No. 1 (2023)

Section

Articles

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