About 80% of the Third World population suffers from extreme poverty. In the Philippines, while poverty incidence has seen a reduction in recent years, the number of poor people has remained considerable, with more than the third of the 78 million Filipinos living below the poverty line.
With the broad vision of helping alleviate poverty in the country, Ahon Sa Hirap, Inc., (ASHI) was established. Ahon Sa Hirap literally means "to rise above poverty".
ASHI uses the Grameeen Bank Approach (GBA) founded by Professor Muhammad Yunus of the Economics Department of the Chittagong University, Bangladesh. Through this approach, ASHI provides the poorest women direct access to non-collateralized loan funds to help them increase their income and employment opportunities without passing through the rigid requirements of the traditional lending agency like the banks.
ASHI started in January 1989 as an action-research project led by the professor of the University of the Philippines Los Baños (UPLB). Initially funding came from Asia Pacific Development Center (APDC) based in Malaysia.
Two years after its inception, ASHI was registered under Security and Exchange Commission as a non-stock, non-profit, non-governmental organization (NGO). NGO status has allowed ASHI to enter into contract and loan arrangements, as well as to receive grants and donations from various local and international agencies.
ASHI faced a major crisis in 1994 with 62% of its members in default. Rather than closing, ASHI Board appointed its President, Mila Mercado-Bunker, as the Executive Trustee to taken up the challenge of reconstructing the program. CASHPOR and Grameen Trust provided technical assistance in the rehabilitation and staff training. By 1995, repayment rates had risen above 97% allowing ASHI to resume vigorous membership expansion in 1998.
As of August 2007, ASHI grew to 21 branches situated in the provinces of Laguna, Rizal, in South of Metro Manila and Antique in the Visayas Region. With the total outreach of 22,052 members that have received loans amounting to 213,875,183.203 since 1989, ASHI have maintained a notable achievement of 2.22% portfolio at risk.
In Numbers
FINANCIAL SERVICES
There are three (3) different products that the institution had developed for its members. These are the following:
LOANS
1. General Loan - must be used for an income generating activity only. To ensure this policy is maintained a Loan Utilization Check is carried out one week after the loan release. The maximum amount for a General Loan is set by the Loan Cycle and Member’s Credit Rating to date
2. Microenterprise Loan are available to micro entrepreneurs, who have received business training through our partnership with INSOL Development Foundation's BDS program, amount of up to 150,000.00 can be accessed and repayment is based on the cash flow of the business. Cash flow records and the business plan are strictly monitored by INSOL Enterprise Center staff and ASHI Microenterprise Desk from Head Office.
3. Agricultural Loan are managed outside the Grameen Operations Department and follow a different methodology. The inspiration of solidarity group concept and repayment period provide a basis for the AGAP methodology. 2008-2011 marked the start of the pilot test in Antique and will be evaluated to roll out to other branches of ASHI.
4. Incentive Loans are provided for members who maintain 100% record and include Housing, Educational and the Market Day Loan. To prevent over-indebtedness, each the General Loan (productive loans) must be higher than the total members incentive loans. Each member must have a maximum of up to 70,000 or 1500 US $ at one time combining all loans including group fund loans.
5. Special Loans these loans are provided to meet emergencies of the members of the group as well as to address the problems within the center.
SAVINGS
Savings products follows the Compensating Balance Rule, where the total savings must not exceed the loan portfolio and include: Compulsary Savings, Voluntary Savings and Special Savings.
MICRO INSURANCE
In 2010 theexisting Damayan Program was resolved to be called MODIFIED DAMAYAN PROGRAM: Damayan Fund - this fund, originally used to contribute to the family upon death of a member had been istitutionalized in 2006 through a one-time Membership Fee of P250.00 was converted to the Self Administered Damayan Program for members over 65 years and the younger menbers were enrolled with Micro-Ensure a Local NGO operating as an imtermediary offering micro insurance options through local insurance partners.
