Microfinance


Microfinance is a range of financial services that CCT offers to poor and low-income clients, particularly micro-entrepreneurs as platform for sharing the Gospel. These financial services include business loans, savings, and housing loans.

Typical clients (referred to as community partners) of CCT microfinance services are self-employed, home-based micro-entrepreneurs in the informal business sector such as sari-sari store owners, roadside eatery owners, fish vendors, and fruit or vegetable stand owners. They use the loans they receive to purchase supplies, merchandise, or equipment for their micro enterprises. Ninety percent of these partners are women who are assisted in their small-scale businesses by members of their families or by less than five paid employees.

To qualify for a regular business loan, a micro-entrepreneur who has been running her business for a least a year and who is between 18 and 56 years in age must join a fellowship group near her residence. The group (of 12 – 20 members) holds a fellowship meeting once a week in the home of one of the members. During each hour-long meeting the community partners study a portion of the Scriptures, pay their loans, make savings deposits, share successes, and pray for each others’ business or personal problems.

The first loan released to all clients is 4,000 PHP (USD94). Succeeding loans are increased by 2,000 PHP (USD47) with each new cycle. No collateral is required for the loans which are paid for in cycles of four to six months. Clients with good repayment records and potential for success are offered medium business loans starting at 51,000 PHP (1,999 USD) and a maximum of 750,000 PHP (17,646 USD).

By God’s grace we have seen a remarkable number of success stories. Through microfinance, the community partners are able to expand their businesses, earn more income, send their children to school, improve their living conditions, and even make an impact on their community by creating new jobs.

Please click on this link for one success story: http://cctgeneralnews.blogspot.com/2011/10/nanay-andresa-mindanao-masikap.html

CCT also offers other financial and non-financial products. These services include access to life and health insurance, entrepreneurial training, mentoring, and business development.

There are CCT microfinance offices in 23 provinces, 49 cities, and 42 towns of the Philippines.