Gradnting Credit on Micro Lending

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Chapter 1
THE PROBLEM AND ITS SETTINGS

Background of the Study
For the self-employed in the world where the poor entrepreneurship is involved experimenting with the new technologies and learning about each people self. Specialist of Micro-finance gives emphasis of proving credit to a small business or making it available to the people’s minds and allowing customers through self-confidence and a little of improvement. Likewise, that’s why poor women are keep on borrowing money to the Bombay’s because of the small, and uncollateralized loans it leave which them no choice but to experience the non-traditional roles. (Drugov et al. 2008).
Here in the Philippines, if you offer them to lend money from you, they not even hesitate to accept your offer because of the poverty. Most of the lending businesses here in the Philippines are owned by the Bombay’s or the Indians. Most of the mini-store here and invest entrepreneurs 90% are owned by the Indian’s (Jingjosam, 2013).
According to Lacorte (2010), Davao City is planning and trying to create a group to finance the needs of the people who are poor, which government officials and businessmen are taking hard time conveying their services to the poor people in the ARMM (Autonomous Region in Muslim Mindanao) because it is dangerous because some of the employees have been kidnapped so it’s so risky for them. But the executive director of the Mindanao Microfinance Council Jeffrey Ordonez declared a peace and order to the ARMM which is too risky to them.
Statement of the Problem
The study intends to determined perceived creditors basis first granting credit to micro lending to residents of barangay San Antonio Matina, Davao City; the following statements of the problems are:
1. What is the d...

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...edit. Microfinance is an act making saving accounts, insurance, money transfers, loans and other banking services available to offer to the customers that don’t have the capacity to access. Usually the reason why people still in the world of poverty the reason why they are borrowing money to the Bombay because they are lacking access to the traditional financial service.
In most cases Filipino now are encourage to borrow money to Bombay’s because nowadays many Bombay’s are not forcing their customers to pay them unlike before, and it is already a big help for the Filipinos even though they offer high interest of 20% for 40 days loan charge they can also extend it to 60 or 70 days (Jimto, 2012).

MAIN VARIABLE

MODERATING VARIABLE

Figure1. Conceptual Framework showing the variables of the Study

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