K-Coop: Modelling inclusive, empowering microfinance
Published Feb 20, 2023 12:05 am
FROM THE MARGINS
The values of shared wealth and people participation distinguish the Kabuhayan sa Ganap na Kasarinlan Credit and Savings Cooperative (K-Coop) from other microfinance institutions (MFIs) in the country. K-Coop, which evolved into a cooperative from a microfinance NGO, turned seven last week. I tip my hat to my good friend, Maria Anna “Me-an” De Rosas-Ignacio, and her colleagues for successfully nurturing this cooperative business model of microfinance.
K-Coop’s provision of innovative programs and services for urban poor women is worthy of emulation. At the height of the Covid-19 pandemic, I witnessed first-hand how Me-an and her team lobbied with LGUs and key government functionaries to ensure their members’ access to vaccination and critical health services. Exhibiting the true spirit of camaraderie, Me-an shared K-Coop’s experiences with other MFIs and the Microfinance Council of the Philippines, to enable them to also help their client-members. The move helped thousands of our poor kababayans. It also facilitated partnerships between MFIs and LGUs, which helped the microfinance industry in immeasurable ways at that critical time.
The K-Coop story
K-Coop traces its roots from the Alternative Socio-Ecoonomic Program (ASEP) of the Foundation for Development Alternatives. ASEP was a Grameen-based livelihood lending program that evolved into KASAGANA-KA in 1994.
“In 2002, we registered with the Securities and Exchange Commission as KASAGANA-KA Development Center Inc. (KCDI), a social development NGO with a microfinance program,” relates Me-an.
It was the late Severino “Jun” Marcelo, Jr., KDCI’s first executive director, who coined KASAGANA-KA, which stands for Kabuhayan sa Ganap na Kasarinlan, literally, “livelihood for genuine self-reliance.” KASAGANA-KA defines KDCI’s overall vision for its beneficiaries; it is also an exhortation of being one with others toward well-being and development.
KDCI decided to transfer the microfinance program to a cooperative in 2014, with the NGO retaining its social development initiatives. Me-an explains:
“K-Coop was borne out of the desire of KDCI’s leadership to return to their client-beneficiaries most of the financial benefits from the organization’s microfinance operations.”
KDCI prepared for the transition and in 2016, Me-an sought the help of a legal expert, our mutual friend, Ferdinand “Joy” Casis, to handle K-Coop’s registration with the Cooperative Development Authority. Garth Noel Tolentino became K-Coop’s first chairperson while Joy served as board secretary until his passing in 2020.
Innovative services
K-Coop’s primary objective is to create vibrant economic, social, political and sustainable communities. Its products and services are categorized into six pillar programs that correspond to the UN-SDGs: Livelihood and Enterprise Development; Education, Training and Formation; Health and Wellness; Security, Safety and Shelter; Social Protection; and, Environment, Resiliency and Sustainability.
“We have a combination of financial products and non-financial services for each program,” Me-an clarifies.
As of December 2022, K-Coop has a total membership of almost 50,000 active clients. Its 1,601 centers served 199,148 individuals in NCR, Regions III and IV-A. For all types of loans including livelihood loans, total disbursements amounted to ₱1.3 billion, with ₱460 million loan outstanding and a high repayment rate of 98 percent.
K-Coop provides microinsurance to members via the KASAGANA-KA Mutual Benefit Association (K-MBA), which offers basic life insurance, credit life insurance, and other insurance products thru tie-ups with other private insurers. To date, K-MBA insures 243,000 lives.
K-Coop developed many innovative programs to help their members cope with the Covid-19 pandemic.
“We conducted surveys and found out that more than 70 percent of our members lost their livelihood,” says Me-an. “To address hunger problems and also help our members recover, we had Project Kariton, Project Singkong-Sabaw, and Project Karinderya.”
These are subsidized feeding programs in poor communities, with food and ingredients bought from the kariton (vending carts) and karinderya (food stalls) of K-Coop members, who were given loans for their microenterprises.
Partnerships for impact
Me-an explained that being part of a network of civil society organizations (CSOs) helped them mobilize resources for the above-mentioned programs. KDCI and K-Coop provided all the human resource requirements (for organizing, monitoring, evaluation, and training), but the funds came from Jollibee Foundation, Peace and Equity Foundation, Philippine Business for Social Progress, and other partners. She added that they also tapped into interest earnings that they have earmarked for use in social development programs.
“As a coop, we strictly follow the percentage allocation required, so part of our earnings is set aside for community projects. That is why K-Coop cannot expand or grow as fast as microfinance NGOs. Because we are a cooperative, almost 50 percent of our net income has to be returned to our members and communities,” she explains.
According to Me-an, the pandemic showed them that to have an impact, they cannot do things alone. They need to partner with other CSOs and the LGUs of the communities where they operate. They also need to research and be innovative.
K-Coop is really inspiring.
There is no better way to end this article than with these wise words from Me-an: “We are not here to collect loan payments. We are here to change the lives of the people and our members.”
The values of shared wealth and people participation distinguish the Kabuhayan sa Ganap na Kasarinlan Credit and Savings Cooperative (K-Coop) from other microfinance institutions (MFIs) in the country. K-Coop, which evolved into a cooperative from a microfinance NGO, turned seven last week. I tip my hat to my good friend, Maria Anna “Me-an” De Rosas-Ignacio, and her colleagues for successfully nurturing this cooperative business model of microfinance.
K-Coop’s provision of innovative programs and services for urban poor women is worthy of emulation. At the height of the Covid-19 pandemic, I witnessed first-hand how Me-an and her team lobbied with LGUs and key government functionaries to ensure their members’ access to vaccination and critical health services. Exhibiting the true spirit of camaraderie, Me-an shared K-Coop’s experiences with other MFIs and the Microfinance Council of the Philippines, to enable them to also help their client-members. The move helped thousands of our poor kababayans. It also facilitated partnerships between MFIs and LGUs, which helped the microfinance industry in immeasurable ways at that critical time.
The K-Coop story
K-Coop traces its roots from the Alternative Socio-Ecoonomic Program (ASEP) of the Foundation for Development Alternatives. ASEP was a Grameen-based livelihood lending program that evolved into KASAGANA-KA in 1994.
“In 2002, we registered with the Securities and Exchange Commission as KASAGANA-KA Development Center Inc. (KCDI), a social development NGO with a microfinance program,” relates Me-an.
It was the late Severino “Jun” Marcelo, Jr., KDCI’s first executive director, who coined KASAGANA-KA, which stands for Kabuhayan sa Ganap na Kasarinlan, literally, “livelihood for genuine self-reliance.” KASAGANA-KA defines KDCI’s overall vision for its beneficiaries; it is also an exhortation of being one with others toward well-being and development.
KDCI decided to transfer the microfinance program to a cooperative in 2014, with the NGO retaining its social development initiatives. Me-an explains:
“K-Coop was borne out of the desire of KDCI’s leadership to return to their client-beneficiaries most of the financial benefits from the organization’s microfinance operations.”
KDCI prepared for the transition and in 2016, Me-an sought the help of a legal expert, our mutual friend, Ferdinand “Joy” Casis, to handle K-Coop’s registration with the Cooperative Development Authority. Garth Noel Tolentino became K-Coop’s first chairperson while Joy served as board secretary until his passing in 2020.
Innovative services
K-Coop’s primary objective is to create vibrant economic, social, political and sustainable communities. Its products and services are categorized into six pillar programs that correspond to the UN-SDGs: Livelihood and Enterprise Development; Education, Training and Formation; Health and Wellness; Security, Safety and Shelter; Social Protection; and, Environment, Resiliency and Sustainability.
“We have a combination of financial products and non-financial services for each program,” Me-an clarifies.
As of December 2022, K-Coop has a total membership of almost 50,000 active clients. Its 1,601 centers served 199,148 individuals in NCR, Regions III and IV-A. For all types of loans including livelihood loans, total disbursements amounted to ₱1.3 billion, with ₱460 million loan outstanding and a high repayment rate of 98 percent.
K-Coop provides microinsurance to members via the KASAGANA-KA Mutual Benefit Association (K-MBA), which offers basic life insurance, credit life insurance, and other insurance products thru tie-ups with other private insurers. To date, K-MBA insures 243,000 lives.
K-Coop developed many innovative programs to help their members cope with the Covid-19 pandemic.
“We conducted surveys and found out that more than 70 percent of our members lost their livelihood,” says Me-an. “To address hunger problems and also help our members recover, we had Project Kariton, Project Singkong-Sabaw, and Project Karinderya.”
These are subsidized feeding programs in poor communities, with food and ingredients bought from the kariton (vending carts) and karinderya (food stalls) of K-Coop members, who were given loans for their microenterprises.
Partnerships for impact
Me-an explained that being part of a network of civil society organizations (CSOs) helped them mobilize resources for the above-mentioned programs. KDCI and K-Coop provided all the human resource requirements (for organizing, monitoring, evaluation, and training), but the funds came from Jollibee Foundation, Peace and Equity Foundation, Philippine Business for Social Progress, and other partners. She added that they also tapped into interest earnings that they have earmarked for use in social development programs.
“As a coop, we strictly follow the percentage allocation required, so part of our earnings is set aside for community projects. That is why K-Coop cannot expand or grow as fast as microfinance NGOs. Because we are a cooperative, almost 50 percent of our net income has to be returned to our members and communities,” she explains.
According to Me-an, the pandemic showed them that to have an impact, they cannot do things alone. They need to partner with other CSOs and the LGUs of the communities where they operate. They also need to research and be innovative.
K-Coop is really inspiring.
There is no better way to end this article than with these wise words from Me-an: “We are not here to collect loan payments. We are here to change the lives of the people and our members.”