Browsing by Author "Agustin, Precious Gen C."

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    Microfinance targeting and repayment performance: a case study of kasagana-ka development center, Inc.
    (2010-04-07) Agustin, Precious Gen C.; Talledo, Donna S.; Esguerra, Emmanuel
    The management of microfinance institution can spell the difference between a failed microfinance attempt and a successful one. This paper explores two objectives - targeting the entrepreneurial poor effectively and posting highly timely repayment rates. Using data gathered from the Kasagana- Ka Development Center, the authors performed a probit and OLS regression to determine whether the MFI fulfills these two objectives and what are the determinants for successfully achieving these objectives. The results suggest that though 39% of the clients do not pay on time, all of them still pay given 2 weeks in arrears. The characteristics of the center and the business of the micro finance customer are shown to be important determinants of timely repayment. Regression results show that only 4% of the sample fulfilled the requirement of KDCI of being "poor". It was also shown that all of the clients in the sample were all above the poverty line based on the official Philippine poverty line and the expenditure-based poverty line. Overall, our results show that further study should be done to see how the group dynamics in a center work and suggest that KDCI should develop appropriate tools and techniques to properly screen their clients.