SEDPI KaNegosyo: Revolutionizing Microfinance in Mindanao

Bayugan City, Agusan del Sur – SEDPI KaNegosyo, a pioneer in microfinance, continues to set itself apart from conventional microfinance institutions with its innovative approach to financial services, particularly in the thriving communities of Mindanao.

Since its inception, SEDPI KaNegosyo has been on an impressive trajectory of growth. From a modest beginning with two branches and seven staff members in 2016, the organization has expanded to 15 branches spread across key regions including Agusan del Sur, Davao de Oro, Davao del Norte, Davao del Sur, Surigao del Sur, and Zamboanga del Sur, with a remarkable increase in staff strength to 127 as of October 2023. This expansion is a testament to the organization’s commitment to reach and uplift low-income groups.

The Operations Manager of SEDPI KaNegosyo, Elysil Claudel, highlighted the differences between SEDPI’s model and conventional microfinance (MF) during a recent presentation to representatives of the Land Bank of the Philippines. Unlike traditional MF, which often imposes penalties and continues to charge interest even when clients cannot pay due to unforeseen circumstances like calamities or illness, SEDPI KaNegosyo adopts a more compassionate approach. Their fixed service charge, absence of interest and penalties, and support mechanisms for business continuity, demonstrate a clear focus on the welfare and empowerment of their clients.

Moreover, SEDPI KaNegosyo’s objective diverges significantly from conventional MF. While the latter primarily aims at loan collection, SEDPI is dedicated to growing small businesses, showing a profound commitment to the entrepreneurial spirit of their clients. This philosophy is further exemplified in their innovative programs that encourage savings accumulation rather than continually growing loans of members, distinguishing SEDPI KaNegosyo as a leader in responsible and ethical microfinance.

The numbers speak for themselves, with a portfolio amount that has seen a staggering increase from PHP 1.67 million in 2016 to PHP 102.7 million in 2023, and number of nanoenteroprise joint venture partners that has grown from 1,828 to 19,197 in the same period.

Complementing its robust financial growth, SEDPI’s KaTambayayong program, a damayan scheme, showcases the organization’s dedication to community welfare and mutual aid. Since 2017, a total of PhP26 millio in benefits have been disbursed. As of October 2023, PhP5.44 million of assistance were given to 1,951 members and their families. Through KaTambayayong, SEDPI reinforces its commitment to a holistic approach, underscoring the value it places on the financial and social safety nets for its members, further cementing its role as a catalyst for inclusive development.

SEDPI KaNegosyo’s philosophy extends beyond mere financial transactions. It seeks to upend the traditional collateral-heavy and default-punitive systems of lending by tailoring its services to cater to the unique challenges faced by nano-enterprises. This approach embodies SEDPI’s mission to liberate clients from the vicious cycle of poverty and enable them to build a sustainable future.

With this innovative model, SEDPI KaNegosyo is not just providing financial services; it’s crafting a legacy of social empowerment, contributing to a more financially inclusive and resilient Mindanao.

About SEDPI: SEDPI is an organization deeply invested in the development of sustainable programs for financial inclusion, offering a suite of products and services designed to support the growth and resilience of microenterprises across the Philippines.

Elysil Claudel (facing back), SEDPI KaNegosyo Operations Manager, provides orientation to LBP representatives during their field visit to Bayugan Branch, Agusan del Sur.

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