Evaluation of the sustainability of the credit service of Silang Market Vendors Multipurpose Cooperative (SMV-MPC) in Silang, Cavite 2005-2012.

Date

4-2013

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Manilay, Alessandro A.

Abstract

The study was conducted to evaluate the credit facility of Silang Market Vendors Multipurpose Cooperative (SMV-MPC). The specific objectives were: (a) determine the growth in number of members who availed of the cooperative’s credit facility from 2005 to 2012; (b) determine the loan amount released by the cooperative to its member- borrowers from 2005 to 2012; (c) determine the source and total amount of funds borrowed by members from 2005 to 2012; (d) evaluate the repayment performance of the cooperative’s member-borrowers from 2005 to 2012; (e) describe and evaluate the systems and procedures of loan application, processing and collection and its impact on the lending efficiency and sustainability of the cooperative’s credit service; (f) determine how member-borrowers’ regarded the cooperative’s credit service ; and (g) evaluate the cooperative’s efficiency and sustainability from 2005 to 2012. The study utilized both primary and secondary data. Descriptive data such as frequency counts, percentages and growth rate analysis as well as financial ratios were utilized to analyze the data generated. From 2005 to 2010, the trends of the growth of the number of member-borrowers who availed of the loan, the amount of loan released and repayment performance were determined by the study. In addition, sources of funds being lent to borrowers were also identified. Member borrowers were asked to rate the system and procedures being followed in providing the credit service of the cooperative. The results of the Likert Scale showed that the member-borrowers were satisfied with the credit service of the cooperative. The result of profit margin ratio analysis revealed a low value from the period 2005 to 2007. The amount retained as net revenue did not exceed 25 percent while expenses ate up 75 percent or more of the gross revenue. The following recommendations are suggested in order to help SMV-MPC to improve its efficiency and sustainability: a) to implement a buddy system wherein a borrowing member is required to have a co-maker when applying for a loan; (b) a borrowing member should be required to sign a promissory note saying that the loan will be paid on or before the due date; (c) SMV-MPC could schedule a daily collection, imitating the “5-6” system which is proven to be an effective method of collecting small loan payments from market traders; and (d) Board of Directors should cut some operational expenses by dropping some non-functioning committees and merging functions of related committees together.

Language

English

Location

UPLB College of Economics and Management

Call Number

Thesis

Document Type

Thesis

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