Group lending is not only beneficial for the poor people as they gain access to credit, it is also an advantage for the microfinance institution that is providing the loans. Part of the responsibilities of the microfinance institution, such as monitoring loans and enforcing repayments, are taken care of through the group’s own checks and balances.
This program is expected to boost and expand the economy’s productive capacity and support a sustainable and inclusive economic growth. On our part, the BSP will continue to safeguard an enabling macroeconomic environment that will help facilitate the country’s “golden age of infrastructure,” through the implementation of sound monetary and financial policies.