FROM THE MARGINS
Opening a door often leads to new rooms and many other doors. The Tulay sa Pag-unlad, Inc. (TSPI), a pioneer of the Philippine microfinance industry, opened a door that led to many microfinance institutions (MFIs) also opening doors of opportunities to millions of poor Filipinos.
Founded in October 1981, TSPI was inspired by Jesus’ miracle of feeding the multitudes (Luke 9:10-17). Starting with little resources, TSPI began providing micro-loans to small businesses in Metro Manila in 1982. More resources poured in eventually, and under the dynamic leadership of Benjamin (Benjie) Montemayor, TSPI successfully embarked on its transformation mission through microenterprise development. Benjie passed away a few years ago but he is fondly remembered. He was very generous in sharing TSPI’s experiences and it was thru him that many practitioners learned how to implement credit and savings programs for the enterprising poor long before microfinance became a byword.
Industry leader
TSPI started replicating its programs in 1986, engaging with provincial partners that eventually became independent MFIs: Kabalikat Para sa Maunlad na Buhay, Inc. (KMBI) in Valenzuela, Taytay sa Kauswagan, Inc. (TSKI) in Iloilo, Rangtay sa Pagrang-ay, Inc. (RSPI) in Baguio, Alalay sa Kaunlaran, Inc. (ASKI) in Cabanatuan, Hagdan sa Pag-uswag Foundation, Inc. (HSPFI) in Cagayan de Oro, and Talete King Panyulung Kapampangan, Inc. (TPKI) in Pampanga. They formed the Alliance of Philippine Partners in Enterprise Development, Inc. (APPEND) in 1991.
In 1996, with funding support from USAID, TSPI spearheaded the Philippine Coalition for Microfinance Standards. This group of microfinance practitioners and advocates led the development of operational and financial standards for microfinance, guiding the transformation of many NGOs into viable and sustainable MFIs. In 1999, the coalition members established the Microfinance Council of the Philippines, Inc. (MCPI) where I had the privilege of serving as founding president.
I consider it a great honor to have served as board member of TSPI from 2000-2002, along with Narciso Padilla, Aurelio Llenado Jr., Ricardo Jumawan, David Bussau, Rene Cristobal, Olivia Pascua, Lamberto Meer, Cornelio Villareal Jr., Ruben de Lara, Ma. Luz Planas and Dennis Isidro. Working with these wonderful individuals to pursue a transformative spiritual vision was truly inspiring.
Empowering the poor
TSPI continues to give the poor the financial tools they need to work their way out of poverty. Headed by its executive director, Alice Cordero, TSPI innovates a lot to help farmers and micro-small-and-medium-enterprises (MSMEs) through a broad range of products and services.
“TSPI today has more than 160,000 active micro-entrepreneurs and 10,000 farmer clients,” says Alice. “We serve them through our 120 branches in Metro Manila and 22 provinces in Luzon.”
Alice reports that as of December 2022, TSPI’s loan portfolio has reached ₱1 billion. TSPI has ₱1.5 billion total assets, with a fund balance of ₱604 million and ₱600 million micro-savings. It is already recovering from the adverse effect of the pandemic lockdowns.
“Our current repayment rate has improved to 95 percent under the Covid-Loan Recovery Program and due to the increase in our collection agents,” says Alice.
TSPI’s programs and services include livelihood and social loan programs with access to micro-insurance (life and credit life) from the TSPI Mutual Benefit Association. Alice explains: “Our livelihood loan programs support the sustainability and growth of our clients’ micro-enterprises and farm production activities, by providing working capital loans, values formation and capacity-building.”
The TSPI Kabuhayan Program (TKP) provides collateral-free loans up to ₱50,000, payable weekly within 6 months, while TSPI Programang Pang-Agrikultura (TPP) offers production loans to help small farmers defray the cost of farm inputs and labor. Payable in lump sum or multiple payments upon harvest, TPP loans are 85 percent secured upon enrollment in their Agricultural Guarantee Fund Pool. Lastly, the TSPI Maunlad Program (TMP) offers additional capital loans up to ₱300,000 to entrepreneurs running small businesses with at least ₱60,000 capital.
Alice adds: “We offer home improvement and sanitation loans, as well as health care loans in partnership with PhilHealth.” TSPI also provides educational loan assistance to the children and immediate family members of clients.
Sambayanihan centers
In 2020, to celebrate its 40th year, TSPI launched the Sambayanihan Program to bring their services closer to their clients. Alice explains that this is a strategy to deliver the TSPI transformation framework focused on God-centeredness and becoming socially responsible Filipinos. She happily reports that they have constructed more than 104 Sambayanihan centers with the support of their center leaders, clients, LGUs and more than 100 local ministries. This year, they are embarking on digitalization to provide Sambayanihan clients with more and better online services.
For the past 42 years, TSPI has released ₱130 billion in loans to four million households, focusing on the most vulnerable. Women micro-entrepreneurs account for more than 90 percent of their clients, while farmer groups represent about 10 percent. They are also serving indigenous peoples (Dumagats and Aetas).
TSPI really lives up to what our Lord said in Matthew 5:16: “Your light must shine before others so that people will see the good that you do, and praise your Father in heaven.”
(Dr. Jaime Aristotle B. Alip is a poverty eradication advocate. He is the founder of the Center for Agriculture and Rural Development Mutually-Reinforcing Institutions (CARD MRI), a group of 23 organizations that provide social development services to eight million economically-disadvantaged Filipinos and insure more than 27 million nationwide.)