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capability to send their children to the desired schools; asid e from this they have help other poorpeople to escap e poverty by giving the m employment . Also CAR D ha s scholarship s which ar eexclusive for children of CARD members . Actually a few of member's childre n who graduate dwith scholarship, ar e now employed with CARD.Despite of benefits an d advantage s the financial product s o f CARD calamit y loan ar einsufficient fo r members . Th e las t typhoon s whic h hi t th e lan d mass of community last yea r(20060 becam e th e mos t disastrou s natura l calamit y in the whol e year . Man y wer e affecte despecially livelihood of small farmers. The damage was relatively high yet our calamity loan wasnot enoug h fo r repair s an d rehabilitation s accordin g to ou r clients . The y ar e suggestin g tha tcalamity loan amount to increase next time.5. Projec t Design5.1 Backgroun d o f the Project5.1.1 Th e Center for Agriculture an d Rural Development (CARD), Inc .Founded as a social development organization in December 1986 , CARD ha s evolved asa leade r i n th e microfinanc e industry . Curren t achievement s include s th e deliver y o fmicrofinance service s to ove r 336,000 households o r 2,000,000 of the tota l population, whic hhas bee n widely recognized. CARD' s ultimat e goal is empowering poor families economicallyand sociall y particularl y househol d women . Earl y year s o f operatio n hav e le d t o th eimplementation o f differen t socia l developmen t project s lik e communit y organizin g an dlivelihood assistanc e program , schoo l buildin g an d potabl e wate r project , cooperativ edevelopment an d eve n livestoc k dispersa l programs . B y th e yea r 1990 , th e institutio n the ndecided to focus on programs that would reach a greate r number of poor family fo r the stabilityof their livelihood through microfinance as the main development strategy . Sinc e taking off withits Grameen-style micro lending, CARD ha s been refining the methodology with the end view ofachieving the tripl e bottom line objectives of outreach, sustainabilit y and impact in the live s ofthe clients, their families and communities.CARD wa s the first non-government organizatio n to obtain a license to operate a ruralbank, th e CAR D Ban k fro m th e Bangk o Sentral ng Pilipinas (BSP) . I n August 1997 , CAR Dassumed a bigger role in Philippine microfinance industry when it transformed an d establishe dCARD Ban k a s a forma l financial institution . It wa s i s a big step for th e institutio n which i s14
highly drive n and encourage d b y it s overarchin g mission of "empowering" the poo r throug hprovision of responsive microfinance products and services to its target clientele in a sustainablemanner. CAR D Ban k Inc . ha s 1 2 ban k branche s an d 6 1 bankin g unit office s an d mor e tha n70,000 clients . Through the year s o f operations , simplificatio n o f operationa l procedure s an dpaper requirement s wer e implemente d fo r efficienc y i n shiftin g servic e deliver y fro m grou psolidarity to individual liability scheme. This step was a result of the study to find out th e causesof repayment problem s and client resignations. Hence, this study aims to discover new feature sof produc t tha t will provid e continuous cas h flo w t o clients , thereby sustainin g their busines sopportunities and growth for higher return.The majo r objectiv e of CARD is to motivate low income families in resisting starvation.In relatio n to this these individuals who lack collateral, employment , and their stead y trac k ofnegative credi t history who cannot eve n be qualified fo r the most minimum traditional credit ofother microcredi t and microfinance institutions are give n access t o financial service s in CARDThose financia l service s hel p poo r familie s to improv e their regula r meal s eac h da y an d hel pthem gradually mov e on in building up their entrepreneurs to eventually attain higher income forthe families . I n addition, with thei r acces s t o microfinanc e services, they hav e capabilitie s tosend thei r childre n to schoo l an d improv e their home s wit h concret e materials . On e o f th efinancial service s being developed is the SIPAG loa n which was pilot tested in Novembe r 2004,to approximately 450 advanced clients called graduates. The new SIPAG Loa n is designed onlyfor ol d members wh o stayed for 3 years, technicall y known as graduate members. SIPA G loanwas conceptualize d as th e entr y poin t of CARD Ban k advance d client s to a higher amoun t ofloan required in their growing enterprises. Th e pilot stage ran up to two years of operations withan average loa n amount of P60,000 with around P10,000 in savings. Late r this product was alsopilot teste d to a number o f clients who were no t par t of center membership . Portfoli o At Risk(PAR) o f SIPAG flew hig h when mixed wit h non-cente r members . Som e member s an d nonmembers,eve n wit h interestin g feature s o f SIPA G misinterprete d th e produc t design .Misinterpretations create d negativ e impact s t o clien t performanc e a s th e result s o f strande dgrowth (o f some clients) . Th e matte r wa s reporte d t o th e Boar d o f Directors during regularmonthly meetings where an agreement with management wa s reached for SIPAG to be offered tograduates member s only . CAR D use d th e finding s a s th e mos t importan t too l t o improv e th eportfolio. T o restore the graduatio n importance , portfolio is converted int o dual-base d pricing .15
Page 2: iiAcknowledgementI would like to ex
Page 5 and 6: VList of Tables:TABLE1. Classificat
Page 7 and 8: AbstractPoverty is more often a cyc
Page 9 and 10: 2. Problem StatementApproximately 5
Page 11 and 12: encourages processe s tha t lea d t
Page 13 and 14: households economic resources an d
Page 15 and 16: and BSP tend t o confirm MCPI 3find
Page 17 and 18: 4.3.1 Methodology : Focus Group Dis
Page 19: climbs 100 % or even triples or qua
Page 23 and 24: 5.1.4 CAR D Bank , A Microfinance-o
Page 25 and 26: Activities:1) Selecte d microfinanc
Page 27 and 28: Glenda Magpanta y the new produc t
Page 29 and 30: 6.5 Collectio n ProceduresPayment o
Page 31 and 32: 7. Monitorin g and Evaluatio n7.1.
Page 33 and 34: 7. 6 Expected OutcomesTable 5: Prod
Page 35 and 36: BibliographyAlip, J.A.B . (2002) .

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