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CFCT Monitoring 3 September 24, 2009

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AgreementsAgreement Point Person Deadline

1. Weekly Submission of PAR Reporta. Branch levelb. Consolidated

MCH/JLL Every ___

2. Monthly FS submissiona. Branch levelb. Consolidated

MCH/JLL Every third Thursday of the following month

3. Simulation of LLP and LLR (following BSP Circular 409)

MCH Every third Thursday of the following month

4. Loan Prioritization-emailed already

Head/Supervisors July 31

5. DQ Task Force (emailed already) BFC August 6

6. Four Saturdays of Past Due Collection (LABAN) August 8, 15, 22, 29

JCT/RMM August 27 (for LABAN reports of August 8, 15, and 22)September 3 (for August 29)

CBL8-O3

AgreementsAgreement Point Person Deadline

7. 5th Saturday for client interview on DQ reasons and solutions (September 5)

JCT/RMM September 10

8. Submission ofa. Revised CBL and CBS formsb. CFC-Tekton forms currently being used to process

existing loans c. Subsidiary ledgers in AO folder (green, orange, red)

CBL8-O4

PD Agreements

Agreement Point Person Deadline

1. Client Exit interview – 10 dropouts per project assistant (PA) October 9

2. Competition Analysis Matrix – 1 competitor MFI per branch manager

October 9

3. PRA on Seasonality pattern of income, expenses, savings and credit – 1 FGD per PA

October 23

4. PRA on Time Series of Crises – 1 FGD per account officer October 23

5. PRA on Life Cycle Events 1 FGD per PA October 23

6. Microinsurance research tool – 30 respondents per PA November 6

7. Remittance research – 5 respondents per account officer plus a table showing the number of remittance receiver clients in each center (see table on the next slide)

November 20

8. Impact Assessment – 30 respondents per PA December 4

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Number of Remittance Receivers

Center Name Client Name

Number of Remittance Receivers in

the HH

Occupation of OFW

Country

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Competition Analysis Matrix  CARD TSPI KMBI RB Paracale BADEVCO

Product (Design)Sikap Loan/ Sagip Loan/ HaPinoy/ Emergency Loan/ Regular Loan

General Loan and Special Loan   Regular Loan, Housing Loan and Emergency Loan

Baranggay Loan and Microfinance Groupings

Eligibility Reqmts. Female, with existing business  Female, Attend 2-hour per day seminar for 4 days; and after 1 week loan release

3 days seminar 2 hours each day

Barangay Loans: for barangay officials only; Microfinance for microentrepreneurs

Years in Business no minimum as long as the business is existing     None as long as there is a 

business  

Residency 3 years     As long as one is a resident of the area  

Age 18 - 60 years old   18 to 60 years old 18 to 65 years old  

ID documents (SSS, Voter’s ID etc)

Nothing needed as long as with good reputation through CI of Technical Officer and Branch Manager before membership; ID picture

Baranggay Clearance, Sedula and and ID Picture; TSPI also issues ID to the clients

Barangay clearance, birth certificate, marriage contract, sedula, ID picture

ID picture  

Business location          

Cash flow requirement (Daily, weekly, monthly or seasonal)

Conducted during the CI - weekly

Determined by account officer during CI

No specific requirment; Determining loan amount is based on CI

Through CI only and asset assessment, with semblance of project based lending

 

Required to open Savings account 

Automatic - 40 pesos CBU per week, withdrawable after the first loan cycle but with 20% maintaining balance based on the loan amount released

Compulsory savings - 30 pesos per week; 4 pesos per week damayan

40 pesos CBU per weekCBU is pre-deducted equivalent to 2.5% of the loan amount

 

Ineligible Clients  Male        

Loan Purpose Additional working capitalGeneral Loan - for additional working capital; Special Loan for emergency and for multipurpose

Additional working capital and start up

Additional working capital and start up as long as the client is able to pass the CI

 

Min Loan Amount 2000 4,000 to 5,000 in the first loan cycle 4,000 2,500 

Max Loan Amount5000 on the first loan; 5000 increment every cycle; up to 50,000

  2,000 maximum increment every loan cycle

Increment is 50% of the previous loan  

Loan Duration23 weeks, but on the 20th week accelerated payment is acceptable

23 weeks, but on the 12th week accelerated payment is acceptable

24 weeks 1 year and six months  

CBL8-O7

Competition Analysis Matrix  CARD TSPI KMBI RB Paracale BADEVCO

Loan Duration23 weeks, but on the 20th week accelerated payment is acceptable

23 weeks, but on the 12th week accelerated payment is acceptable

24 weeks 1 year and six months  

Guarantees required (e.g. Group liability, co-maker, deed of assignment etc.) Family guarantor Group liability and co-maker Group guarantee and co-maker Group guarantee and co-maker 

Interest Rate 30% per annum 36% per annum 24% to 36% per annum26% per annum but higher effective interest rate because of pre-deduction

 

Service Charge None None None 7% per loan cycle, pre-deducted  

Compulsory Savings 40 per week 30 per week 40 per weekNone because it is pre-deducted - known as pilit impok

 

Other charges (Identify) No memebrship fee, no passbook 25 pesos for ID and passbook 60 pesos processing fee

10 notarial fee; CBU, insurance and PhilHealth are pre-deducted 

 

Promotion          

Marketing/Information Dissemination

Word of mouth, relatives, get in touch with a key person and then the key person spreads the word and invites other members to join; CARD also conducts orientation

Word of mouth Word of mouth Word of mouth  

Advertising None None None None  

PlaceMain office is in Daet and meet in a the house of a designated client

Main office is in Daet and meet in a the house of a designated client

Main office is in Daet and meet in center house

Head office of the bank is in Paracale  

Positioning

Like after 3 years of membership member could avail scholarship for children - college education, insurance - philhealth; akap CARD - hospitalization benefit - 1800 per year; 

 

Likes insurance better than CARD; as long as payment is complete attendance is not required; with additional knowledge on business during business

Nothing to worry about because all you have to be mindful of is the loan repayment; Loan processing is fast, all the client has to do is to bring the document requirements and the loan will be released

 

Slogan/vision          Corporate Image          Product Image          

Physical Evidence With satellite office in Talisay and CARD Rural Bank in Daet; Office located in Daet

Center house is a requirement; 30 minutes for collection and 30 minutes for the meeting

With office, account officers often wear jacket  

People Technical officers are in uniform        

Process          

Others

2 resignations no longer allowed to go back; one missed attendance 4 weeks not allowed to withdraw savings and no increase in loan amount; 2 absences 1,000 decrease in loan amount; subsequent loans do not need to have CI

likes CARD betterIntegrate SSS in the product and provide scholarship; Loan release is in the form of check and they encash this in UCPB

Every loan cycle, CI is conducted  

Dislikes Stringent attendance policy and decrease in loan amount

Utang na loob factor sa Account Officer - need to feed the AO

Clients remit the payment and clients shoulder the expenses like transportation; Center penalty if incomplete paymet 2,800 per center

If one group member is delinquent the whole group could not re-loan; Savings of members could not be withdrawn of the group if any of the group member is delinquent

 

CBL8-O8

Competition Analysis Matrix  CARD TSPI KMBI RB Paracale BADEVCOSlogan/vision          Corporate Image          Product Image          

Physical Evidence With satellite office in Talisay and CARD Rural Bank in Daet; Office located in Daet

Center house is a requirement; 30 minutes for collection and 30 minutes for the meeting

With office, account officers often wear jacket  

People Technical officers are in uniform        

Process          

Others

2 resignations no longer allowed to go back; one missed attendance 4 weeks not allowed to withdraw savings and no increase in loan amount; 2 absences 1,000 decrease in loan amount; subsequent loans do not need to have CI

likes CARD betterIntegrate SSS in the product and provide scholarship; Loan release is in the form of check and they encash this in UCPB

Every loan cycle, CI is conducted  

Dislikes Stringent attendance policy and decrease in loan amount

Utang na loob factor sa Account Officer - need to feed the AO

Clients remit the payment and clients shoulder the expenses like transportation; Center penalty if incomplete paymet 2,800 per center

If one group member is delinquent the whole group could not re-loan; Savings of members could not be withdrawn of the group if any of the group member is delinquent

 

CBL8-O9

CBL and CBS Monitoring

Character and Capacity Based Lending (CBL)

1. Loan Application Form

2. Client Rating System

3. Character and Background Investigation (CI/BI)

4. Cash Flow

Color-coded Bookkeeping System (CBS)

1. Subsidiary Ledger

2. PAR Report

3. Outreach Report

4. Repayment Behavior Tracking System

CBL8-O10

CBL and CBS Monitoring

• Thirteen (14) project assistants (PAs) submitted the Character and Capacity Based Lending (CBL) and Color-Coded Bookkeeping System (CBS) assignments

• Each PA submitted three (3) folders containing (folder 1) CBL forms including Tekton LAFs, SEDPI LAFs, CIBIs, cash flow forms, and client rating forms; (folder 2) outreach report, PAR report, and subsidiary ledgers; and, (folder 3) repayment behaviour tracking sheets

• CFC Tekton has adopted their Tagalog version of SEDPI LAF

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Character and Capacity Based Lending

Account Officers

Accomplished Assignment Remarks

1. Enguerra, Ruben HO

Loan Application Form New 5/5 Repeat 5/5

- Some items were left unanswered or unmarked instead of putting N/A if not applicable to the client, i.e. utility bills, school tuition fees, and receipts shown

- Occupation of household member was vaguely described as “self-employed” or “businessman” instead of indicating specific livelihood activity

- Some suppliers do not have contact detailsCash Flow 10/10 - Conversion used was not encircled

- Some items in the debt capacity analysis were left blank- Inaccurate computations

Credit and Background Investigation (CI/BI) 10/10

- Name of supplier interviewed was not indicated- Some answers in character assessment inadequately 

demonstrate client’s reputation in the community, entrepreneurship, stability and responsibility, i.e. “mabait,” and “ok naman siya.”

Client Rating 0/10

- Inaccurate computations

CBL8-O12

Character and Capacity Based Lending

Loan Application Form• Some items left unanswered were the

middle initial, age, SLS/center name, loan amount applied for, loan term, last loan amount, business growth, market conditions, receipts shown, rent, utility bills, suppliers, school tuition fees, amount of savings, organizations, spouse’s signature.

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Character and Capacity Based Lending

Loan Application Form• Some items were left blank instead of

answering “n/a” if the item is not applicable or irrelevant to the applicant/client.

• The proper way of erasing data was not observed.

• Occupation of household member was vaguely described as “self-employed” or “businessman” instead of indicating specific livelihood activity

CBL8-O14

Character and Capacity Based Lending

Loan Application Form• Some descriptions of market conditions do

no show supply, demand and competition.• Some descriptions of business growth do not

show comparison of past and present status.• Did not indicate contact details of suppliers

but answered “cash basis” instead.• There was no probing on some answers, i.e.,

reason why the receipt was not shown

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Character and Capacity-Based Lending

Credit and Background Investigation• Was not able to interview suppliers/creditors• Some answers in character assessment

inadequately demonstrate client’s reputation in the community, repayment behavior, entrepreneurship, stability and responsibility

• Some items were left blank instead of answering “n/a” if the item is not applicable or irrelevant to the applicant/client

CBL8-O16

Character and Capacity-Based Lending

Cashflow• Conversion used was not encircled• Some income sources of household

members were not included• Some items under the debt capacity

analysis were left blank• Proper way of erasing data was not

observed

CBL8-O17

Character and Capacity Based Lending

Client Rating System• Left some items blank instead of writing

N/A if not applicable to client• Inaccurate computations

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Color-Coded Bookkeeping

AO Accomplished Assignment

Remarks

1. Palad, Angelo N Subsidiary Ledger 

31/30- Note: All SLs were classified as green (current 

loans)- Initial transaction has no PA signature and the 

amount paid was left blank

PAR Report 1/1 - No corrections

Outreach Report 1/1 - No corrections

Repayment Behaviour Tracking Sheet 31/30

- Note: All 30 client samples have ongoing first loan cycles

CBL8-O19

Color-Coded Bookkeeping

Subsidiary Ledger• Initial transaction has no PA signature and

the amount paid was left blank• No balance forwarded• Some items were left blank instead of

entering “0” or “-” to indicate none

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Color-Coded Bookkeeping

PAR Report• Most forms were correctly done• Proper way of erasing data was not

observed

Outreach Report• New and dropout columns were left blank

CBL8-O21

Color-Coded Bookkeeping

Repayment Behaviour Tracking System• Most forms were done correctly• Outstanding balance of savings was left

blank

CBL8-O22

SEDPI

Raquel Reyes

Faline Saño

CBL8-O23

Maraming salamat po!