Performance Analysis of Selected Microfinance

Today, microfinance has become a familiar term that many associate with financially sustainable poverty reduction. But some argue that it makes poor people’s lives even more rigid by making them slaves of debt.The study aims to evaluate the performance of Tulay Sa Pag-Unlad, Inc. in the lives of its members in three selected barangays (50 loan member-borrowers) in Balayan, Batangas. A mixed-method was used to explore the performance of the identified microfinance towards rural development. Data gathered were analyzed using descriptive analysis and anecdote of the successful members. The study employed sustainability, relevance, effectiveness and efficiency parameters to measure its performance. Moreover, a SWOT analysis was used to help plan out its management operations and consider factors that may help or hinder its success.The respondents belonged to the middle-aged bracket (41-50), most (96%) women, 88% married and 68% have attained secondary education. Livelihood loan is regularly availed by the borrowers to finance an on-going business; 38% of the respondents are into vending business. Among the respondents, 66% expanded their business while 52% made profits.The study revealed that TSPI’s operations and management including its products and services are relevant, effective, efficient and sustainable based on the indicators listed. There is an increasing trend in the number of loan borrowers and amount of loans released but was affected in 2020 due to pandemic. Generally, majority of the respondents agreed that loans from TSPI was used to start a business and has helped them generate an income. However, 68% of the respondents perceived that loan programs do not satisfy their needs, loans have higher interest rates and failed to give incentives to regular borrowers.The paper concludes that to obtain sustainable development, there must be continued growth and diversification of the rural economy, and all segments of the population including farmers, rural micro-entrepreneurs and the poor must have easy access to sustainable financial services such as savings, credit and insurance provided by self-reliant, sustainable financial institutions in a conductive macroeconomic policy environment and development of microfinance institutions