NGOs unite in support of ‘Microfinance NGOs Act’

Alleffortsofhundredsofmembers and staff of the Microfinance Institutions (MFIs) based in the Philippines who gathered last August 10, 2015 in support to the passing of the Microfinance NGOs Act by the Senate were paid off when H.E. President Ninoy Aquino III recently signed the bill into law.

The Republic Act (RA) No. 10693 or the law that strengthens nongovernmental organizations (NGO) engaged in microfinance activities for the poor, which is also known as the Microfinance NGOs Act, recognizes the significant role of microfinance NGOs in the economic growth of Philippines and in poverty eradication. It also strengthens the primary purpose of implementing microfinance programs, products and services for the poor.

The bill is sponsored by Senator Paolo Benigno "Bam" Aquino IV in the Senate and by APPEND Party-List Representative Pablo Roces Nava III in Congress.

Microfinance NGOs are organizations that offer a variety of loans to low-income households at a minimal interest rate. These loans are not limited to business or livelihood. It also ranges to housing, education, medical and even energyrelated financing. Loans are payable in negotiable terms, but are mostly paid on a six-month term.

According to Sen. Aquino, the approval was a victory for all microfinance NGOs. “For decades now, these microfinance NGOs have been helping our government’s goal of inclusive growth and sustainable poverty alleviation without getting anything in return,” Aquino added.

Aquino said that the law will only cover the microfinance NGOs. He further stated that the main purpose of these microfinance NGOs is to empower the marginalized sector in the country and give them the means to attain financial stability.

"With this law, we will be able to reach more Filipinos in poor communities, enabling us to fulfill our mission as an institution – lifting the poor out of poverty and bringing our nation towards development," said Dr. Aris Alip, founder and managing director of Center for Agriculture and Rural Development Mutually Reinforcing Institutions (CARD MRI).