Effects of microfinance institution services to the economic, social, and personal development domains of farmers in Vintar, Ilocos Norte, Philippines

Abstract

This study focused on exploring the effects of microfinance institution’s (MFI) services to the economic, social, and personal development domains of farmers in Vintar, Ilocos Norte. It also described their socio-economic profile. Further, it examined their driving forces in availing microfinance services, and the problems that they encountered in availing microfinance services.

The mix method of research was employed using a survey instrument and an interview schedule in gathering data from 245 farmer members of Microfinance institutions in Vintar, Ilocos Norte. The consent of the respondents was sought before data gathering.

Majority of the farmers has a monthly farming income of Php 5,000 and below, majority of them are tenants, almost one half of them is into farming for 26 years and above, almost one half of them does not have other sources of income aside from farming. The topmost microfinance services availed are savings and life insurance. They save and pay life insurance coverage on a weekly basis, one third of the respondents pay hospitalization insurance coverage every week, majority of the respondents did not avail crop insurance coverage and agri-loans services of the MFIs.

Accessibility was the topmost factor while financial security was the least factor that attracts the farmers in availing the services of MFIs. The respondents experienced very slightly serious problems in availing the services of MFIs.

As regards the effects of the MFIs to the economic development domain of the farmers, majority of them indicated an increased income, reduced poverty, increased acquired assets, enhanced productivity, increased savings and increased in capital.

Along the effects of the MFIs to the social development domain, majority of them experienced improved household management, improved lifestyle, improved public relationship with other people, and increased self-confidence and fulfillment.

For the MFIs effects on the personal development domain, majority agreed that the MFI services led to the improvement in their children’s education, increased involvement in family’s decision making, improvement and development in their health status, and improvement in their food/diet pattern.

Generally, the MFIs contributed a modest or minimal level of upliftment on the economic, social, and personal domains of the farmers.