Delinquency Management

Ateneo de Manila-SEDPI NanoEnterprise Development Program
(formerly the Ateneo Microfinance Capacity-Building Program)


Course Objectives:

  • Define key delinquency management terms, identifying causes, calculating costs, and analyzing their impact on microfinance institutions.
  • Analyze the borrowers’ perspective of on-time and late payments and propose strategies to encourage timely repayments based on observed behaviors.
  • Calculate portfolio at risk, repayment rates, and loan loss rates while evaluating the advantages and limitations of each measure.
  • Classify loans according to delinquency status, determine factors for prioritizing delinquency measures
  • Identify and implement principles and methods of collection, prepare negotiation strategies, and adapt approaches for dealing with different borrower types to improve repayment rates.

Course Description:

This course equips microfinance practitioners with essential tools and strategies to manage loan delinquency effectively. Participants will explore causes, costs, and borrower perspectives on repayment, learn key metrics like portfolio at risk, and apply loan classification and collection techniques. Gain actionable insights to minimize delinquency and improve financial sustainability.


(L)Earning Fee

PhP5,000 registration fee*
*Includes 1 day in-person training, self-paced online course (Canvas), and a 2-hour webinar

Optional: Free (L)Earning Wealth Book – just pay for PhP200 processing and shipping fee


SEDPI Payment Channel


Blended Learning

  • 1 day in person training*
  • Self-paced online course (Canvas) that will be open for two-three weeks  
  • 2-hour webinar after the self-paced online course

*Note: For those who can’t attend the in-person training, the training will be exclusively livestreamed

Islamic Finance 101: Principles and Practices for Microfinance Practitioners

Ateneo de Manila-SEDPI NanoEnterprise Development Program
(formerly the Ateneo Microfinance Capacity-Building Program)


Course Objectives:

  • Identify the core principles of Islamic Finance
  • Compare conventional and Islamic financial practices
  • Compare conventional and Islamic financial practices
  • Explore ethical financial instruments in Islamic Finance
  • Promote social and economic justice in microfinance
  • Develop action plans for integrating Islamic finance in microfinance operations


Course Description:

Discover the foundations of Islamic finance and its applications in microfinance. This course covers Shari’ah-compliant principles, ethical finance practices, and practical tools for empowering communities. Gain insights into profit-sharing, risk-sharing, and asset-backed arrangements that prioritize fairness and community well-being, tailored for Filipino microfinance practitioners.


(L)Earning Fee

PhP5,000 registration fee*
*Includes 1 day in-person training, self-paced online course (Canvas), and a 2-hour webinar

Optional: Free (L)Earning Wealth Book – just pay for PhP200 processing and shipping fee


SEDPI Payment Channel


Blended Learning

  • 1 day in person training*
  • Self-paced online course (Canvas) that will be open for two-three weeks  
  • 2-hour webinar after the self-paced online course

*Note: For those who can’t attend the in-person training, the training will be exclusively livestreamed

Symbiotic Synergies: Crafting a Future of Empowered Health with SEDPI and ASMPH

Esteemed Deans and respected colleagues,

I am Vince Rapisura, 20 years with Ateneo, and proudly co-founding the Social Enterprise Development Partnerships, Inc. or SEDPI in 2004 with Edwin Salonga. I stand before you to propose strategic partnership with the Ateneo School of Public Health and Medicine. Our group, spanning 8 organizations, envisions empowered Filipinos globally, championing nanoenterprise development through microfinance, social entrepreneurship, and financial literacy.

The SEDPI Group of Social Enterprises

In two decades with Ateneo, I inadvertently became a financial “GURO” to 382K Facebook and 373K YouTube subscribers, navigating the digital landscape with a blend of financial expertise and occasional internet humor. This unexpected online journey reinforces SEDPI’s vision, weaving financial literacy and social entrepreneurship into the fabric of global Filipino empowerment.

SEDPI, while digital in its reach, is deeply rooted in the tangible, on-ground impact across our beloved nation. Operating through 15 branches scattered in the heart of Agusan del Sur, Davao de Oro, Davao del Norte, Surigao del Sur, and Zamboanga City, our arms extend to approximately 19,000 nanoenterprise members, each one a testament to our unwavering mission to stand as a stalwart leader in nanoenterprise development.

Our offerings are as diverse as they are impactful. “SEDPI KaNegosyo” extends a financial lifeline to nanoenterprises, while “SEDPI KaTambayayong” embodies our damayan spirit, providing a safety net during times of death, sickness, accidents, and calamities. “SEDPI KaIpon” encourages a culture of savings amongst our members, “SEDPI KaBalai” dreams of building adaptive, livable, affordable, and inclusive housing communities, and “SEDPI KaLusog” symbolizes our commitment to community health.

Each product, meticulously crafted, not only serves a practical purpose but also intertwines with our vision of a future where every Filipino, especially those at the lowest socio-economic status, is empowered, self-sufficient, and secure. Thus, I stand here, inviting Ateneo School of Public Health and Medicine to join hands with SEDPI, intertwining academic excellence with practical impact, and together, let’s craft a future that befits our shared vision and values.

Onground track record

In the particular journey of “SEDPI KaNegosyo,” we’ve channeled 102.7 million pesos into livelihood capital, utilizing a model anchored in joint ventures as opposed to the traditional creditor-debtor relationship found in conventional finance. Our members are not mere transactional partners; they are our allies in a collective pursuit of development and empowerment. Consequently, when life’s unpredictables, such as familial sickness or vulnerability to disasters, impede their capacity to repay, we do not accrue interest earnings. Our compass is directed by a principle that supersedes financial gain: to elevate our members out of poverty. SEDPI staunchly refrains from profiting from their misfortune. Since 2017, we have mobilized 38 million pesos in savings through SEDPI KaIpon, an emblem of our members’ trust and our commitment to safeguarding their financial wellbeing while catalyzing their socio-economic upliftment.

Addressing our members’ vulnerability to disasters, SEDPI launched a venture into socialized housing through “SEDPI KaBalai,” aiming to build adaptive, livable, affordable, and inclusive communities. Our strategy is twofold: acting as a disaster management strategy and simultaneously relocating our members away from hazard and danger zones, thereby safeguarding their physical and financial wellbeing.


In September, we broke ground with an ambitious and hopeful heart. Our blueprint for 2023 involves the construction of 12 housing units, with a visionary expansion to 200 units by 2025. To further this initiative, we’ve strategically land-banked 17 hectares across four municipalities, laying a solid foundation upon which our vision for secure, sustainable living for our members can materialize.

SEDPI KaLusog

As we strive to fortify the resilience of our members further, we cast our sights on the imminent implementation of “SEDPI KaLusog,” our flagship community-based public health program. Envisioned to be a beacon of wellness and support, KaLusog is committed to providing a spectrum of services, including clinical and laboratory offerings, among others, to envelop our members in a mantle of holistic health care.

The Ateneo de Manila University has been a steadfast ally in our endeavors, notably through the Development Studies Program and the Ateneo Center for Social Entrepreneurship, which have been nurturing our initiatives such as KaNegosyo, KaTambayayong, and KaIpon since 2006. As we forged ahead with SEDPI KaBalai, initial dialogues have been held with Ateneo de Davao and Xavier University, ensuring that the foundations we lay are robust and in harmony with local contexts and needs.

Today, as we explore the horizons of “SEDPI KaLusog,” it is with great anticipation and hope that we extend an invitation to the Ateneo School of Public Health and Medicine to bring your expertise, research, and passion onboard. Together, we can co-create a program that doesn’t merely respond to immediate health needs but preemptively builds a healthier, more resilient community, ensuring that each member not only survives but thrives.

In this partnership, we see a confluence of practicality and academia, of on-ground experience and research-backed strategies. Together, we can amplify our impact, weave a tighter safety net for our members, and sculpt a future where every Filipino stands empowered, healthy, and secure in their socio-economic stature.

Diving deeper into “SEDPI KaLusog,” we pivot towards providing preventive health care through a robust community health program, seamlessly aligning with the Universal Health Care Law. Our timeline is both ambitious and meticulously planned to ensure our members have access to essential, quality healthcare.

In 2023, our focus is twofold: Conducting research to rigorously assess our members’ access to health services and securing PhilHealth accreditation for our clinic. Moving into 2024, we will establish an annual physical exam as a baseline for our members and roll out our community healthcare program, ensuring a holistic, preventive, and supportive healthcare environment for our community.

SEDPI Head Office

In a significant stride towards realizing these objectives, last July, we inaugurated our head office in Rosario, Agusan del Sur, where we have thoughtfully allocated spaces for a clinic and laboratory that the Ateneo School of Public Health and Medicine (ASMPH) can utilize. This allocation, an 110-square meter space, is our tangible commitment and counterpart to this venture, with the flexibility to expand as the program burgeons.

Our choice of Rosario is strategic. As the most central location among our 15 branches and a fourth-class municipality, our presence not only facilitates our operations but also contributes significantly to local socio-economic development. It’s here, in the confluence of need and opportunity, that we envision “SEDPI KaLusog” blossoming, providing essential healthcare services while simultaneously nurturing the local socio-economic landscape.

Envisioning a comprehensive and inclusive approach, “SEDPI KaLusog” is designed to weave a tapestry of healthcare services that are not only accessible but also tailored to the unique needs of our community. The envisioned services under this program encapsulate:

  • Mobile annual physical exams, ensuring consistent health monitoring,
  • A dedicated laboratory, providing crucial diagnostic services,
  • A clinic, acting as a nexus for healthcare in the community,
  • Teleconsultations with specialists, bridging geographical barriers,
  • Home visits by healthcare professionals, ensuring no member is left behind, and
  • A pharmacy, safeguarding access to essential medications.

In order to navigate the manifold aspects of community health, we’ve allocated a budget to on-board 2 General Practitioner doctors and 7 nurses, dedicated to community health maintenance. This team will act as the backbone of “SEDPI KaLusog,” ensuring our members have consistent, reliable access to professional healthcare.

In this light, our collective journey forward, in partnership with the Ateneo School of Public Health and Medicine, is not just a fusion of academia and practicality but a symbiotic relationship, where we leverage each other’s strengths to uplift, empower, and safeguard the health and prosperity of our communities.

Benefits to ASMPH


The proposed collaboration with the Ateneo School of Public Health and Medicine (ASMPH) transcends mere cooperation; it is an investment in synergizing academia and practical, on-ground applications to forge a future that is both sustainable and impactful.

But what does ASMPH stand to gain from this amalgamation of knowledge and fieldwork?

  • Students will immerse themselves in real-world experiences, an invaluable complement to theoretical learning, while enhancing interdisciplinary collaboration and networking. Engaging with the community and understanding the nuances and challenges of public health from an on-ground perspective will mold them into professionals with both expertise and empathy.
  • Research and Publication Opportunities will be abundant, as our diverse and rich community contexts provide a plethora of scenarios to explore, analyze, and document, contributing to the academic and global health discourse.
  • Implementation of Health Innovations will be direct and immediate, as our communities become living laboratories where theories are tested, refined, and implemented, ensuring that innovations are not confined to paper but see the light of day, impacting real lives.
  • And most paramount, Cultivating Social Responsibility and Community Engagement among the students and faculty. Engaging with SEDPI ensures that every research, every innovation, and every interaction leaves a tangible, positive imprint on the community, embedding a spirit of social responsibility and active community engagement in the hearts of future healthcare leaders.

Together, with SEDPI’s pragmatic approach and ASMPH’s academic prowess, we weave a future where healthcare is not a privilege but a right, accessible to all, irrespective of socio-economic stature. This partnership symbolizes a future where every Filipino, regardless of their socio-economic status, has access to quality healthcare, a future sculpted by our collective efforts, expertise, and unwavering commitment to social responsibility.

Sustainability

In our endeavors with “SEDPI KaTambayayong,” our damayan program, we’ve witnessed firsthand the inspiring spirit of collective responsibility and willingness among our members to contribute to shared objectives. Since its inception in 2017, we have extended 23.86 million in cash assistance to our members. This is a resonating testament that our members are not seeking handouts, but are earnestly willing to provide a counterpart, actively participating in initiatives that uplift not only themselves but also their fellow community members.

Fast forward to the present year, as of August 2023, our KaTambayayong program has disbursed 4.72 million pesos in financial assistance, delineated as follows:

  • 3.3M for death assistance, benefitting 132 members
  • 0.8M for hospitalization assistance, aiding 1,069 members
  • 0.3M for accident assistance, supporting 177 members
  • 0.2M for credit insurance claims, assisting 49 members
  • 0.1M for calamity assistance, reaching 221 members

This breakdown is more than mere numbers; it is a tangible reflection of our active and empathetic community, where every peso contributes to alleviating the burdens of life’s unforeseen challenges for our members. It is a clear demonstration that, when structured effectively, community members are more than willing to contribute towards mutual support systems that provide security and assistance in times of need.

The spirit of “damayan,” or communal unity and support, runs deep within our initiatives, and it is this spirit that we hope to encapsulate and further with “SEDPI KaLusog” in collaboration with ASMPH. By harnessing this inherent willingness to contribute and support one another within the community, we stand poised to craft a future where health and wellbeing are not only universally accessible but are also sustained and fortified by the very community they seek to serve.

SEDPI-ASMPH partnership

In conclusion, esteemed colleagues, the path that stretches before us is not merely a collaboration; it is a confluence of visions, resources, and aspirations, all converging towards a future that embodies inclusivity, empowerment, and holistic well-being for our communities. With SEDPI’s on-ground insights and expansive reach, combined with the academic excellence and innovative drive of the Ateneo School of Public Health and Medicine, we stand on the brink of something truly transformative. Our collective journey is not just about healthcare provision; it’s about sculpting a future where every individual, regardless of their socio-economic status, is enveloped in a safety net that encompasses not just physical well-being but also social, economic, and emotional stability. As we embark on this exciting venture, our guide will be the spirit of ‘damayan’, which has perpetually fueled our initiatives, and the unwavering belief that through cohesive action, research, and empathy, we can manifest a future where prosperity, health, and empowerment are not just ideals but lived realities for every Filipino. With unbridled optimism and steadfast resolve, let us step forward together, crafting a narrative that transcends our individual capacities and scribes a future that stands testament to the indomitable spirit of collective endeavor, empathy, and social responsibility. Thank you.

Update 3: Community assessment and recommendations for support to microenterprises and the informal sector during and after COVID-19

SEDPI is a group of social enterprises that provide capacity building and social investments to development organizations and directly to microenterprises. We serve ~8,000 microenterprises in Agusan del Sur and Surigao del Sur, two of the poorest provinces in the Philippines.

Most of our members, about nine in 10, are women with an average age of 42. These women are typically into vending, farming, fishing, dress making, selling food, and livestock backyard raising.

Community assessments

Every week, since the community quarantine was imposed on March 15, 2020; SEDPI conducted community assessment research with its members. These were conducted on March 15, March 30, April 5 and April 14; through rapid survey via text messaging and calls with our members.

The rapid community assessment aims to determine the economic impact of COVID-19 on our members and to have a clearer picture of what transpires on the ground. We asked our members the following:

  • Status of their livelihood – unaffected, weakened or stopped
  • Experience symptoms of COVID-19
  • Access to government assistance
  • Support needed after the community quarantine

Impact of COVID-19 to microenterprises and informal sector

All microenterprises were negatively affected due to COVID-19. Immediately after the community quarantines were announced, 34% of microenterprises stopped their livelihood. After two weeks this spiked to 51% and slightly recovered to 41% after a month of lockdown.

Some microenterprises reopened their livelihood because they need to earn income to have enough budget to buy rice at the minimum. They sourced locally-available inputs to do this and were able to sell banana cue, camote cue, cassava cake and rice cakes among others.

Majority of microenterprises or 59% reported that their livelihood weakened. Of which, 59% and 31% reported significant and severe weakening of livelihoods resepectively.

Supply chain disruption; inability to deliver goods and services; and prohibition to open non-essential businesses were the main reasons given for stopping or weakning of their livelihoods. With families having to stay home and most business remain closed, there are very few buyers of their products and services. Most barangays prohibit entry of non-residents which prevent others from going to work.

Exposure to COVID-19

An encouraging finding in the rapid community assessment is that only 2 of the 6,071 respondents are persons under monitoring. This may be a positive sign that the community quarantine is effective in containing the rapid spread of the virus.

The quarantine period was extended to April 30 and the question now is how much longer can the poor endure its negative effects to their livelihoods. Many of them are saying that they might die first of hunger before getting infected with COVID-19.

Access to government assistance

It is important to consider the well-being of low-income groups and provide them with enough economic support and social safety nets during this quarantine period. The government’s cash assistance and emergency relief is very much needed on the ground to help them survive.

Only one of ten microenterprises or 11% were able to receive cash assistance; and 60% received relief goods from the government as of April 14. This is an improvement of 1% and 17% respectively from the previous week showing marginal improvement in access to government assistance.

Those who received cash assistance got PhP3,000 to PhP4,000. Most of them received PhP3,600 cash assistance through the 4Ps program of the Department of Social Welfare and Development.

Relief goods received were composed of rice, canned goods and soap. Most of those who received these said that the supply will only last them for 1-2 days. Most of the respondents or 82% also expressed that the PhP5,000 cash assistance will not be enough to cover their daily needs in the next two months.

Recommendations during community quarantine

Hasten government cash assistance and relief

The government needs to hasten release of cash assistance and relief goods to microenterprises and the informal sector. These will alleviate their burden and enable them to survive the community quarantine.

Prohibit interest accrual on MSEs loans

Interest accrual for loan of micro and small enterprises during the quarantine period should be prohibited. On April 3, Ateneo-SEDPI Microfinance Capacity Building program released a position paper regarding this.

The continued charging of interest during community quarantine is socially unjust since this gives additional burden to microenterprise and small enterprises at a time when they can barely survive. This is an unnecessary additional expenses that will make their lives even harder during the rebuilding and recovery phase.

Mass testing

Prioritize mass testing to suspect and probable COVID-19 individuals who belong to low income groups, especially in urban centers, where spaces are cramped and transmission could happen faster.

Free testing services should be provided to make sure that transmission in low-income groups is prevented and managed properly. Local government units should have isolation areas for PUIs and PUMs to prevent the spread of the disease in rural and urban poor communities.

Recommendations immediately after community quarantine

The rapid community assessment showed that 77% of respondents request for cash assistance to restart their livelihood after the community quarantine. Many of the members or 35% would still need relief goods, especially food, immediately after the quarantine and A few or 12% need work to have source of income.

 

 

Cash assistance to restart livelihoods through MFIs

Request for cash assistance to restart livelihoods should be coursed through microfinance institutions (MFIs) to eliminate dole-out mentality. The cash assistance should be given, at the minimum, as 0% loans to microenterprises and the informal sector.

MFIs are well positioned to provide this intervention since they would need to support the rebooting of the livelihoods of their client base. The cash assistance will be collected alongside restructuring of existing loans of clients so that financial service delivery will continue.

Bail out MFIs

MFIs access funds from commercial banks and government financial institutions that they extend as microcredit to low income groups. Based on the Consultative Group to Assist the Poor’s (CGAP) estimate, an 85% repayment rate in MFIs would only have sufficient cshflow to last in the ext six months.

The impact of the pandemic will surely negatively impact repayment rates of MFIs. Based on the figures of those negatively affected, SEDPI estimates that it repayment rates in the next three months after the quarantine period may hit as low as 20% to 30%. Due to this, most MFIs will experience liquidity problems.

Government should intervene and infuse capital in the form of equity to MFIs to fund the proposed cash assistance intended to restart microenterprise livelihoods. Another way of doing this is to temporarily convert debt obligations of MFIs from commercial banks and especially from government financial institutions to equity to ease pressure in debt repayments.

MFIs will eventually pay this equity back to the government, perhaps event at a premium, once they recover from the crisis. SEDPI strongly suggests moving away from debt-based development assistance since interest will ultimately be passed on as additional burden to microenterprises and the informal sector.

This strategy is similar to the bailout of governments to large financial institutions during the 2008 financial crisis. If governments are willing to bail out large corporations, they should also be willing to do the same to MFIs that directly help those at the bottom of the pyramid.

Pay for work programs

Development organizations and government should provide pay-for-work programs to spur local economic development. This will create temporary employment and give purchasing power that will augment efforts to restart of livelihoods.

0% SSS and Pag-IBIG calamity loans

Microenterprises and informal sector who are members of SSS and Pag-IBIG could benefit from the calamity loans offered. Per published policy of these two organizations, members are allowed to borrow calamity loans against their personal contributions.

The interest rate for calamity loan is 5.95% for Pag-IBIG and 10% for SSS. It is highly recommended to bring the interest on the calamity loans to 0%, since these are drawn from personal contributions of members anyway.

Recommendations for the long term

Ease in access to identity documents

Access to government basic services starts with identity. The Philippine Statistics Authority should streamline processes for low-income groups to get government identification documents such as birth certificates, marriage certificates, and licenses.

Greater financial inclusion

It is also important to focus more on financial inclusion to make sure that bank accounts are opened for all low-income families so that they can easily access cash transfers and cash relief in times of disaster. This will ensure that funds truly land in the pockets of low-income groups, and could potentially reduce corruption and patronage politics.

Universal disaster insurance

It is also high time to have universal disaster insurance since the Philippines ranks high in the World Risk Index. This will make us better prepared for disasters and pandemics in the future.

The scheme will provide funds to affected communities, especially low income groups, to cope with the disaster and to rebuild livelihoods. Having disaster insurance will eliminate the need for low income groups to beg for government assistance from politicians.

Tap vast network of MFIs

Microfinance institutions are rooted well in communities and have vast networks that penetrate even the most remote areas. This makes them suitable for information dissemination as well as for distribution of government assistance.

Prioritize support and assistance to the bottom of the pyramid

We may be already enjoying the positive effect of the commuity quarantine to prevent the sudden spread of COVID-19. However, its negative economic impact especially to vulnerable sectors such as microenterprises and the informal sector, is undeniable.

To sustain and complement the gains of the quarantine, priority and free mass testing to low income groups is needed. This will hopefully flatten and at the same time shorten the curve.

Government should hasten delivery of cash and relief assistance to low income groups to alleviate the burden of low income groups. MFIs could complement barangay level legwork for information dissemination and distribution of government assistance with its vast network and penetration in rural areas.

To ease the economic burden of low income groups, the government should stay true to the intent and spirit of the Bayanihan Act, that prohibit accrual of interest and other fees during the quarantine period.

Immediately after the quarantine period, to help jumpstart the economy, the government could provide pay for work programs; and provide cash assistance to microenterprises through MFIs. It could bailout MFIs to ensure continued delivery of much needed microfinance services to the poor.

The proposed 0% calamity loans of Pag-IBIG and SSS could provide much needed relief to microenterprises and the informal sector. In the longer term, structural challenges could be addressed through providing ease in access to identity documents, broader financial inclusion, and universal disaster insurance.

When we channel resources to help microenterprises and the informal sector, we make our nation better poised to recover faster from the negative effects of COVID-19.

Ateneo-SEDPI Financial Literacy Training of Trainers

The Ateneo-SEDPI Microfinance Capacity-Building Program is mounting nationwide three-day training events entitled “Financial Literacy Training of Trainers”.

The training of trainers is a certification that aims to equip stakeholders from the government and private sector to contribute to the financial empowerment of Filipinos.

Training of Trainers (ToT) focuses on providing various methods and techniques on how to deliver a training course. It equips organizations to perform the training cycle from planning, preparation, implementation and evaluation. Trainer guides of all materials and teaching aids are developed and provided to participants. ToTs are effective means of knowledge, skills and technology transfer from SEDPI-Ateneo to participants and partner organizations.

Attendance in the course may be credited towards an Ateneo Diploma in Microfinance. There will be four (4) batches of trainings to cater to participants in Luzon, Visayas and Mindanao.

Date Venue
Feb 20 – Feb 22, 2018 Ateneo de Manila University, Loyola Heights, Quezon City
Feb 27 – Mar 1, 2018 National Educators Academy of the Philippines (NEAP), DepEd, Cagayan de Oro
Mar 6 – Mar 8, 2018 Palm Grass Hotel, Junquera Street, Cebu City
Mar 13 – Mar 15, 2018 Ateneo de Manila University, Loyola Heights, Quezon City

The registration fee is Php20,000 per participant. The fee covers the following:

  • Certificate from the Ateneo de Manila University as having completed the training of trainer course on financial literacy
  • Three meals and two snacks during the training
  • Two nights accommodation based on double to quadruple room-sharing
  • Training materials
  • Access to online course and messenger application

To register, please fill up this form: Ateneo-SEDPI Financial Literacy Training of Trainers Registration Form