Workers’ Microfinance Program (KALINGA para sa mga Manggagawa Fund)

DOLE-BRW – Workers’ Microfinance Program (KALINGA para sa mga Manggagawa Fund)

Bureau of Rural WorkersProgram Objectives:
To alleviate poverty among target workers through micro entrepreneurial activity;
To support employment generation and promote entrepreneurship among workers; and
To facilitate the access of workers to credit services to finance their livelihood and entrepreneurial activities.

Eligible Sub-Borrowers:
Displaced workers in the formal, informal, and public sectors;
Workers with existing micro-enterprise venture needing expansion; and
Workers with no existing micro-enterprise but:
* Are willing to engage in such endeavor; and,
* Have participated in appropriate livelihood/entrepreneurial training.

General Criteria:
* At least one (1) year residency in the area;
* The micro-enterprise should have weekly or daily income;
* Must be 18-65 years old;
* One member per household can apply;
* Not presently employed or has no full-time employment;
* No existing loan with a microfinance institution (MFI)/People’s Credit and Finance Corporation (PCFC); and
* Household monthly income of not more than P10,000 or below the poverty threshold.

Eligible Sub-Projects:
* Handicraft and small manufacturing (e.g. rug making, basket making, etc.);
* Services (e.g. tricycle operation, barber/parlor shop, repair shop, etc.)
* Food production/processing (e.g.. meat processing, candy making, bakery, etc.)
* Small agribusiness projects (e.g.. small piggery/poultry, cutflower production) and production loan for non-traditional crops (e.g.. vegetables) but should be supplemented by a business activity which yields a daily income; rice and corn and other traditional crops are excluded; and
* Market vending and small trading (e.g. sari-sari store, fish, vegetables vending)

Terms and Conditions:

Loan Amount:
* 1st loan – not more than P6,000.00
* 2nd loan to subsequent loans – upon evaluation of the MFIs, based on the previous performance of the sub-borrower
* A gradual increase may be given subject to the needs of the borrower and should be supported by a cash flow statement.
* The maximum loan amount is P150,000.00.

Interest Rate: Shall be based on market rate

Maturity: Shall be based on the sub-projects’ cash flow and the sub-
borrowers’ overall repayment capacity.

Step 1
Worker/Sub-borrower fills up registry form in the Public Employment Service Offices (PESO) located in all Municipal and Provincial government offices, DOLE Regional Offices (ROs) and attached agencies.

Step 2
DOLE ROs and attached agencies or PESO evaluate and refer application to any PCFC-accredited microfinance institution (MFI) operating in the area.

Step 3
MFI conducts credit investigation.
Qualified sub-borrower is advised to attend compulsory group training.
If borrower passes examination, loan is released.

Step 4
DOLE-ROs and attached agencies/PESOs monitor results of referrals.

For more information and advice, please call directly the institution involved.

Contact Details:

Bureau of Rural Workers
Phone (632) 527.5857 • 404.3336
Telefax: (632) 527.5858
e-mail: brwmain@smartbroadband.net.ph
URL: www.brw.dole.gov.ph

Source: BMSMED

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