MFI Report

Ugyon (Ilonggo term for “spirit of unity and cooperation”) Foundation, Inc. was established in June 1995 as a non-stock, non-profit, non-government organization in response to the challenge of empowering the poor of Panay island. It is duly registered with the Philippine Securities and Exchange Commission (SEC Reg. No. ENO95000184).

From 1996 to 2004, in partnership with the President’s Social Fund, UFI embarked on a Capability-Building and Relending Project, including the rehabilitation of inactive beneficiary-unit cooperatives. After a program evaluation in 2005, Ugyon adopted the Progressive Bank's KABULIG microfinance group lending program based on a combo approach of Grameen, MABS (Micro Access to Banking Services), and ASA (Association of Social Advancement system). Ugyon's KABULIG partners include the People's Credit and Finance Corporation, Progressive Bank, Inc. (formerly Rural Bank of Balasan) and Rustan’s Essences Foundation, Inc.

The constituency & service areas of Ugyon are the mountain and coastal barangays of Capiz and Aklan provinces (Region 6), specifically in 133 barangay MF program sites (up 84% from 21 sites in 2005) including Roxas City and the towns of Dumarao, Cuartero, Sigma, Dumalag, Mambusao, Ivisan, Sapian, Dao, Tapaz, & Jamindan, and Altavas in Aklan. There are more than 4,000 active micro-credit program members, 82% women, organized in 151 KABULIG Centers with a gross loan portfolio of over US$346,000.00 or Php16,000,000.00 (US$1:Php46.178 06/03/07 source-BSP).

The main challenges in empowering the poor through micro-credit services in Capiz are multifaceted:
1. Doing market studies to assist poor communities identify suitable community-based micro-enterprises.
2. Organizing small business groups that allow the enterprising poor to avail of microlending and other financial and social services.
3. Maintaining rigorous credit discipline among members through continuous group training, capability-building and administrative measures.
4. Working for a policy environment favorable to community-based micro-enterprises.
5. Creating opportunities that would bring in and improve government social services for the poorest of the poor. Ocultar