Microfinance Institutions and Their Effects on Client Standard of Living

Abstract

The study aimed to look into the microfinance institutions and their effects to client’s standard of living in the province of Zamboanga del Norte and the two cities of Dapitan and Dipolog. Specifically, it sought to determine the effects of microfinance program on the client’s standard of living. The results revealed that most of the clients were engaged in sari-sari store business and fish vending. The weekly income of the clients ranged from Php 3,000.00 and below with a number of them granted with the loan amounting to Php 5,000.00. The mode of payment of the loan amortization was 100% of weekly basis. Most of the clients were in the low standard of living and they were not all raised by availing loans from microfinance institutions in the province. To serve the purpose of microfinance institutions, policies and procedures in granting loan need to be reviewed and clients should be oriented.