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ASSESSMENT ON THE FINANCIAL SERVICES OF CAVITE METRO CREDIT

COOPERATIVE IN IMUS CITY, CAVITE

Rosanne Esmeralda Bordador

A Research Paper submitted to the faculty members of the Department of Management, Cavite

State University-Imus City, Cavite in partial fulfillment of the requirements for the degree of

Bachelor of Science in Business Management. Prepared under the supervision of Dr. Jennypher N.

Fenomeno.

INTRODUCTION

Informal types of cooperatives are as old as human history. Whenever people come

together voluntarily to help one another by providing a group service, they actually had a

simple form of cooperative. But the cooperative movement as we know it today had its

beginnings in Europe during the modern times as a result of the Industrial Revolution. In

several European countries, the first cooperatives were organized by workingman who

were seeking to change the wretched conditions brought about by the new age of machine

and factory production that began in England two hundred years ago, and soon after in

other countries. In England, the weavers and the other workers in the textile industry were

the hardest hit, and they were among the first to organize cooperatives for the purpose of

improving their desperate economic and social conditions (San Gabriel, 2010).

The International Co-operative Alliance mentioned that Cooperative is an

autonomous association of persons united voluntarily to meet their common economic,

social, and cultural needs and aspirations through a jointly-owned and democratically-

controlled enterprise. It is a business organization owned and operated by a group of

SAMPLE CHAPTERS 1-5

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individuals for their mutual benefit. A cooperative may also be defined as a business owned

and controlled equally by the people who uses its services or who work at it (Tayko, 2004)

Moreover, the International Cooperative Alliance (ICA), the body that represents

and serves cooperatives worldwide, reported that there are over one billion people around

the globe who are members of cooperatives. Large segments of the world’s population are

members of cooperatives and it is estimated that cooperatives employ some 100 million

people (www.slideshare.net/jobitonio).

Asia has 45.3 million cooperative members. In Indonesia, 27% of families were

members of cooperatives and in Singapore, 50% of the population were members of

cooperatives. People have opted for the cooperatives way because of the benefits and

advantages that they derive from their membership in the cooperative (Ping-Ay, 2011).

In the Philippines, cooperative plays an important part in narrowing the gap

between investment and savings which are essential to growth. The lack of savings by the

people causes investment to decrease. Decline the investment and productivity results to

unemployment, and a decrease on the income of individuals. This process worsens the level

of poverty in the society (Lakian, 2000).

The credit cooperatives or the credit union is the simplest form among the various

types of cooperative. It accepts deposits from its members and lends money to its members

at a very reasonable interest rate. Credit cooperatives have been very effective in improving

the social and economic conditions of the poor most especially the small farmers,

fisherman, factory workers, office employees, and other low income groups. For example,

the poor were able to acquire their production inputs (fertilizers, fishing nets, tools, and

other like appliances, too) through their credit cooperative (Fajardo, 1993)

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Cavite Metro Credit Cooperative is one of the successful cooperative that provide

lending or financing services to residents of the area as alternative loan sharks. The

cooperative continuously members, so that everyone will have a better life by supporting

their financial needs. When asked what key factors account for the sustained success of the

cooperative, the officers considered the following as critically important: continuous

capital build-up, patronage, active participation of members in the CMCC programs,

honest and competent staff employees, and cooperation among members, officers and staff

(Mendoza, 2007).

This study assessed the financial services offered by the Cavite Metro Credit

Cooperative and how the cooperative manage the availability of funds and capability to

provide loans to their members.

Statement of the Problem

Financial services refer to the services offered by the Cavite Metro Credit

Cooperative to the members in terms of loans, savings and deposits in forms of cash and

checks. In this study, financial services pertains to the differentiate types of loans availed

by the members.

The general objective of the study was to assess the financial services offered by

the Cavite Metro Credit Cooperative.

Specifically, the study sought answers to the following questions:

1. What is the profile of the participants in terms of:

a. age;

b. gender;

c. civil status;

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d. monthly income;

e. years of membership; and

f. amount of share capital;

2. What are the reasons of the members in joining the cooperative?

3. What are the financial services availed by the participants according to the

following:

a. type of loans;

b. amount of loans;

c. terms of payment;

d. no. of loans granted; and

e. duration of processing;

4. How do the participants assess the financial service of the Cavite Metro Credit

Cooperative in terms of:

a. processing of loans;

b. terms and conditions;

c. availability of funds;

d. release of loans; and

e. mode of payments;

5. What are the problems encountered by the participants?

6. Is there a significant relationship between the profile of the participants and

financial services they availed?

7. Is there a significant relationship between the profile of the participants and their

assessment on financial services of the Cavite Metro Credit Cooperative?

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Conceptual Framework

The model shows that the profile of the participants, reasons in joining the

cooperative, financial services availed by the members, assessment of financial services,

problems encountered by the participants be measured by the interpretation and analyzing

according to: data gathering and questionnaires or surveys.

Independent Variable Dependent Variable

Figure 1. Conceptual Paradigm on the Assessment of Financial Services of the

Cavite Metro Credit Cooperative in Imus City, Cavite

Hypotheses of the Study

Financial services availed by

the participants

type of loans;

amount of loans;

terms of payment;

no. of loans granted;

no. of loans pending /

in-process;

no. of disapproved

loans; and

duration of processing

Assessment on the financial

services of CMCC in terms

of:

processing of loans;

terms and conditions;

availability of funds;

release of loans; and

mode of payments

Profile of the participants in

terms of:

age;

gender;

civil status;

monthly income;

years of membership;

and

amount of shared

capital

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Ho1 There is no relationship between the profile of the participants and financial

services they have availed.

Ho2 There is a relationship between the profile of the participants and their

assessment on financial services of the Cavite Metro Credit Cooperative.

Objectives of the Study

The general objective of this study is to find out the financial services availed by

the participants of the Cavite Metro Credit Cooperative and their assessment on the

financial services.

Specifically, the study aimed to:

1. determine the profile of the participants in terms of:

a. age;

b. gender;

c. civil status;

d. monthly income;

e. years of membership; and

f. amount of share capital;

2. determine the reasons of the members in joining the cooperative.

3 identify the financial services availed by the participants according to the

following:

a. type of loans;

b. amount of loans;

c. terms of payment;

d. no. of loans granted;

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e. no. of loans pending / in-process;

f. no. of disapproved loans; and

g. duration of processing;

4. Assess on the financial services by the participants of the Cavite Metro Credit

Cooperative in terms of:

a. processing of loans;

b. terms and conditions;

c. availability of funds;

d. release of loans; and

e. mode of payments;

5. determine the problems encountered by the participants.

6. determine if there is a relationship between the profile of the participants and

they have availed.

7. determine if there is a relationship between the profile of the participants and

their assessment of the Cavite Metro Credit Cooperative.

Importance of the Study

The study will be significant to the government through the additional information,

data and measurement on the cooperatives financial services. The significant of the study

to the Cavite Metro Credit Cooperative may provide with additional information and

measures that which can be used in improving their financial services. Also, the study may

provide information that may orient and guide them on the management of cooperatives.

The Academe may provide with knowledge and better research study. Lastly, the study

could serve as a reference material for future researchers undertaking similar topic.

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Scope and Limitations of the Study

This study focused on one cooperative which was Cavite Metro Credit Cooperative

located in Imus City, Cavite. The time frame covers the period 2008-2012 based on the

availability of data. The study is limited to the members of Cavite Metro Credit

Cooperative. This study determined the profile of Cavite Metro Credit Cooperative

members; the financial services availed by the members; assessment of the financial

services of the Cavite Metro Credit Cooperative, problems encountered and suggestions.

Due to time and financial constraints, the research made use the quota sampling and

purposive sampling by going in the place of the participant that is more accessible for the

researcher.

Definition of Terms

Assessment. This refers to a fact-finding activity that describes conditions that exist

at a particular time or appraisal with regard to the effectiveness, usefulness and efficiency

of something.

Board of Directors. This refers to the body entrusted with the management of the

affairs of the cooperation and by-laws.

Cavite Metro Credit Cooperative (CMCC). This refers to the cooperative which

was founded in 1990 by the residents of Bayan Luma, a barangay in Imus, to provide

lending or financing to the residents of the area.

Collateral loans. This refers to the type of loan that can easily converted into cash,

deposited as pledge with a lender to secure the repayment of loan.

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Cooperative. This refers any registered association with at least fifteen (15)

members with a common bond of interest and who voluntarily join together to achieve a

lawful, common, social and economic end.

Credit This refers to the ability to obtain a thing of value in exchange for a promise

to pay with money.

Credit Cooperative. This refers to type of cooperative which proving thrifts

savings and loan services among its members.

Emergency loans. This refers to type of loans that arising through the incidence of

immediate need for cash because of some unforeseen events that have suddenly happened

which need immediate care and attention.

Financial Service. This refers to the services offered in terms of money by the

cooperative.

General Assembly. This is composed of all members of the cooperative who enjoy

all the rights and privileges of their membership.

Loan. This refers to the act of lending by the members of the cooperative.

Members. This refers to the persons who avail the financial services offered by the

Cavite Metro Credit Cooperative.

Productive loan. This refers to the type of loans intended to encourage and help

members who are industrious and are enterprising.

Profile. This refers to the age, gender, civil status, monthly income of the members

of the cooperatives in Imus City, Cavite

Provident loans. This refers to the type of loans implements the objective of thrift

in a credit union.

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REVIEW OF RELATED LITERATURE

For a broader insight and deeper understanding of this chosen topic, various

literature and studies related to the study were investigated. This chapter aimed to find out

what had already been written on the subject. This review is considered relevant to the

study.

Credit cooperative had its beginning in Germany on the middle of the 19th century,

and it gradually spread. In general, European Cooperatives pool the credit rather than the

cash of their members; that is, the credit cooperative are able to borrow and re-lend to their

members on much more favorable terms than would be possible for individual members.

Usually the loans of the European Cooperatives are made for purposes of production rather

than consumption (Colliers Encyclopedia, 1993)

Through the pooling of savings in credit cooperatives or credit unions, as they

usually are called in the United States, members are able to borrow small sums of money,

ordinarily to finance consumption original capital for the credit union comes from the sale

of shares, and to this are added the deposits of the shareholding members. Loans are strictly

for members only. Expenses have been set aside as surplus, the remainder of which is paid

out to members. Shares receive a fixed rate, and additional earnings are divided in

proportion to deposits kept with the union. Although credit unions of the United States

borrow occasionally, as a rule they lend funds provided by members. Such loans are most

often for consumption expenditures (Iba, 1993).

Cooperative will put forth every effort to enable its members to become financially

self-sufficient and success. It will place high importance on consumer education and the

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teaching of financial thrift. Its principle states “Not For Profit, Not For Charity, Bur for

Service” and its philosophy of practices that ensure the financial strength of the credit

cooperative. It strives to offer services designed to improve the economic and social well

being of all members from all socio-economic backgrounds, including low and moderate-

income members, and return financial value to all those who participate in member-owned

financial cooperative (www.cuna.org.com)

Cooperative is a business. Characterized as being are open, voluntary in

membership, with autonomous decision-making, democratic control, and equitable

distribution of benefits and risk. It is one of the variations of corporation. The difference

between corporation and cooperative is that in cooperatives each stockholder is an active

member of the cooperative regardless of his share and he is entitled to only one vote. The

thrift institution should have a variety of financial services provided at a competitive price.

They also need to innovate and provide unique value-added service as a member privilege.

People should be able to pool their money and make loans to each other. It is an

idea which evolved from cooperative activities in the 19th century Europe. Since that time,

the guiding principles of cooperative have remained the same: (1) only people who are

credit union members should borrow from the cooperative; (2) loans are used for “prudent

and productive” purpose; and (3) a person’s desire to repay (character) is considered more

important than the ability (income) to repay; members are after all borrowing their own

money and that of their friends. These principles still govern most of the world’s credit

unions.

As the 20th century began, the credit union idea surfaced in Canada. Canada’s

successful efforts profoundly influenced two Americans, Pierre Jay, the Massachusetts

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banking commissioner, and Edward A. Gilene, a Boston merchant. The two men helped

organize public hearings on credit union legislation in Massachusetts leading to the passage

of the first state Credit Union Act in 1909. Growth was slow, however, fewer than 10 states

passed credit union laws, many of which were unworkable. The Massachusetts Credit

Association grew slowly. A credit union is a cooperative financial institution, owned and

controlled by the people who used its services. These people are members. Credit unions

are non-profit, and they exist to provide a safe, convenient place for members to save

money and to get loans at reasonable rates (Credit Union National Associations, 2003).

Good management in Cooperative is very important. A number of studies of the

reasons for failures or suspension of cooperative associations indicates that lack of efficient

management is responsible for failures in cooperative (Bakken and Shaars, 1994) .

Cooperative is a kind as social group in any system of social relationship in which

members united by a sense of emotional solidarity and of a common purpose, have culture

which defines the roles and standard by which members are differentiated from non-

members. Each individual member occupies a definite position in a group, performs the

duties and assumes responsibilities that are expected of such position (Salcedo et. al., 2003)

Villamin (1990) claimed that in building the cooperative, it is the responsibility of

each and every member to help build it into a strong institution. The reward one gets from

contributing to the success of the institution could be personal because a viable cooperative

provides him the services he needs, or else he derives personal satisfaction from helping

meet the needs and solve the problems of the community or the society.

Verzosa (2003) stated that in the cooperative context, personal responsibility

coincides with the exercise by other members of the same responsibility. It is therefore,

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more relevant to talk of shared responsibility, the practical application of which is found in

members working together to achieve a common end.

Credit cooperative are generally believed to be the most successful financial

institutions operating outside Central Bank control. They perform financial intermediation

functions just like the banking institutions, but since they are not covered by the Central

Bank regulations, they have greater flexibility in carrying out savings mobilization and

lending functions, hence the term informal financial intermediary. However under the

cooperative laws enacted recently, the operations of the credit cooperatives will be covered

the Cooperative Codes of the Philippines and supervised by the Cooperative Development

Authority (Relampagos, 1990)

A credit cooperative has two purposes in extending credits to their members. The

first one is the productive purpose, which is to finance the production activities of the

members allowing them to increase their cash. The other one is the providential purpose,

which is intended for non-productive purposes but provides for the emergency needs of the

members (Verzosa, 2003).

Onagan (1993) discussed that credit cooperative is like any other organizations

managed by the Board of Directors. The number of directors is determined by the Article

of Incorporation and By-Laws and their powers, as a board, are defined by the by-laws.

The members of the Board are elected from the membership of the cooperative directly by

the members themselves on the basis of one member, one vote, regardless of the amount

of investment by each member. By this principle, true democracy is attained.

Verzosa (2003) summarize what Onagan discussed to safeguard the democratic

process, proxy voting is not allowed. By stressing membership education and

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enlightenment as an essential facet of the cooperative movement, democratic principle is

hereby zealously safeguarded. By the intelligent choice of directors, members are credited

with a real capacity to manage their own affairs. He added that audit or an inventory

committee of three members is also elected by the members to provide balance in the Board

of Directors.

The Cooperative has become a real financial institution for the community since it

offers a variety of convenient and needed services. Several social and economic factors

were found in the study to have contributed to the development of the Group for Production

Credit Cooperative (GPC) in a rural village of a northeastern Mukdaharn Province of

Thailand (Wattanasari, 1996)

De Filippis (2000) concludes that a cooperative which is a form of collective

ownership, offers a useful model for sheltering the people from the vagaries of the market

and capital mobility. This form of ownership is also successful in its effort to improve the

lives of the people involved. It is not able to build upon this success; however, it realizes

its local autonomy. Finally, while it potentially can be used as component of a larger

political movement to directly confront and challenge the hegemonic regime of capital

accumulation, it is currently disconnected from such radical political projects.

According to Fairbarin (2006), the Canadian Cooperative would have to draw on

members’ loyalty and community support to be successful and in so doing, they had

reinforced their community. Case studies from retail coop and credit union reflect the

pressure globalizing trends among national transnational firms.

Requejos (1990) study addressed the contested allocation policies of agricultural

credit cooperative. It is hypothesized that the objective of credit cooperatives is affected by

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the power of structure of its participants, which in turn determines what allocation policy

is adopted. A stochastic, multi-period stimulation approach is used to analyze the

sustainability and impact of various forms of net income allocation practices on a

cooperative’s capital structure, financial performance, and members’ benefits from

cooperative use. Stimulation results indicate that depending on the levels of cooperative

capital is minimal for small proportions of net income allocated. The optimal allocation

policy, however, is difficult to determine because it depends on the existing combination

of forces among the cooperative participants, and the present and future conditions of the

agricultural economy.

Desrochers (2000) conducted a study about the causes and prevention of Credit

Cooperatives’ crisis in Columbia. Two statistical models are considered: first, a logit model

with fixed-effect error decomposition to check for and correct the contagion effect; second,

a hazard model, with selection of the better survival function among the exponential, the

Weibull and the log-logistic. The hazard model presented here is not the classical

proportional hazard model but a split-population model. This split-population model

generates estimates of two variables of interest: (1) the probability of failure, and (2) the

time of failure. This separation is useful for supervisors as they can base their actions on

these two criterions. The main conclusion of the study is that credit cooperatives’ collapsed

was mainly founded in the abuses of some managers in the use of members’ funds. This

means that the supervising authorities should take on preventive measures that permit

continuous control of this latter.

In the study of Verzosa (2003), the economic condition in any environment will

vary from time to time. Factors such as the level of inflation, interest rate, availability of

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credit, consumer disposable income, unemployment levels and general growth trends will

have a major influence on an organizations success or survival. In particular, level of

inflation needs to be taken into consideration by the Credit Cooperative.

Valdez (1997) in his study, recommended that the national government should

support the cooperative regardless of their type and membership composition as long as

economic status is given priority. He also added that the Cooperative Development

Authority should conduct seminars and training by provinces so that cooperative leaders

and members would become aware of the recent cooperative development activities

specifically in production, marketing, management and bookkeeping.

Rosario (1995) in his study, concludes that the cooperative has different top ranked

priorities under each area of concern to enhance its millionaire status, and all of the

priorities identified under each priority and the projects/programs and services it had

undertaken are related to the Cooperative Code, the Cooperative By-Laws, Articles of

Incorporation and the BOD policies.

According to Sibal posted in the internet, the history of the cooperative movement

in the Philippines can be divided into 3 stages. The first stage, from 1895 to 1941, the

introduction of state-initiated farmers coops by the American colonial administrators. The

second stage is from 1941 to 1986. This stage can be subdivided into 4 phases. The first

phase is the period of Japanese occupation which featured a rapid increase in cooperatives

as a result of food shortages. The second phase is the period of rehabilitation period after

the 2nd World War. The third phase is the resurgence of the state-initiated coops while the

fourth phase is the introduction and rise of the non-agricultural coops. The fifth and final

phase is the martial law period. The third stage of the evolution of the Philippine coop

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movement is from 1986 to the present. This stage shows the emergence of the coop

movement as a potent political force as it allies with the NGO and trade union movements

in pursuing the goals of people empowerment and the strengthening the country's civil

society sector (www.uwwc.wisc.edu)

Sibal added that President Aquino's cooperative development program learned

from the past failures of excessive government loans or credit support to cooperatives as

in the FACOMAs and the SNs. Through the KABISIG programs, government agencies

which were prevented from organizing cooperatives, channeled their development

programs through the network of coops, NGOs and POs especially in food distribution,

family planning, barrio facilities and livelihood projects. A coop, for example, was an

effective instrument in bringing to more constituents the services of government as least

cost (www.uwwc.wisc.edu)

The main reason for coop failures was still the lack of education and training. This

was revealed in more than 80 studies which assessed the growth and development of coops

which included the studies of Emmanuel Velasco, the Cooperative Foundation of the

Philippines, Inc. (CFPI) and Leandro Rola (1989). Lack of education and training correlates

with the following causes of coop failures: 1.) Lack of capital, 2.) Inadequate, volume of

business, 3.) Lack of loyal membership support, 4.) Vested interest and graft and corruption

among coop leaders, 5.) Weak leadership and mismanagement, and 6.) Lack of government

support (www.uwwc.wisc.edu)

The Municipality of Imus (Filipino: Bayan ng Imus) is a first class municipality in

the province of Cavite, Philippines and it is the officially-designated capital of Cavite (see

below section). It has a population of 253,158 people according to the 2007 census.

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Because of its strategic location at the entrance to Cavite province from Metro Manila,

Imus was the site of two major Katipunero victories during the Philippine Revolution

against Spain, the Battle of Imus (September 3, 1896) and the Battle of Alapan (May 28,

1898 – when the Philippine flag was first flown), that are celebrated annually in the

municipality. The Imus Historical Museum honors the municipality’s history with lifelike

scenes from the revolution (www.wowcavite.com) .

Cavite Metro Credit Cooperatives was formed in May 1990 with a core group of

45 residents in Bayan Luma, a barangay in Imus, to provide lending or financing to the

residents of the the area as an alternative to loan sharks. Each contributed one hundred

pesos (P100) as initials shared capital. Initially, the cooperative was called Bayan Luma

Credit Cooperative then, which was registered at the Bureau of Agricultural Cooperatives

Development, Department of Agriculture (BACOD-DA) under Registration No. FF-526

on June 19, 1990. Later the cooperative continuously gained members outside Bayan

Luma so the Board of Directors decided to extend its area of operation to the whole town

of Imus (Mendoza and Castillo, 2007) .

In view of this development, the cooperative amended its By-Laws and Articles of

Cooperation under the CDA on May 2, 1995, under its name Imus Metro Credit. In August

2003, the cooperative amended against its Articles of Cooperation and By Laws, increased

its authorized capital from P30 Million to P90 Million under the CDA Registration No.

LGA-CA No. 587 to provide services in Imus.28 And now, its new name Cavite Metro

Credit Cooperatives under the Registration No. LGA-CA 1954 was given on July 12, 2012

to accommodate the whole province of Cavite.

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Since the main operation of the cooperative is on credit, the significant activities

that the cooperative engaged in for community service include the following community

project such as: medical and dental clinic for the members and the community conducted

once a year, weekly feeding program for malnourished children of the community and

scholarship program for the children of members who cannot afford to send their children

to school, or in college (Ibid p.51)

A strong unique feature of the cooperative is the conduct of education and training

activities for the current and incoming members every Saturday. This regular membership

and pre-membership education seminar, accounts for the steady active member

participation in community activities and the decrease of membership to 733 regular

member and 380 associate members. Once a year, the cooperative conducts an ownership

seminar for the members to refresh them on cooperative values and members

responsibility.

METHODOLOGY

This study presented the research design, sources of data, data gathering procedure,

sampling procedure, research instrument, and data analysis and the statistical treatment.

Research Design

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The descriptive method of research was used in conducting the study. This method

involves the description, recording, analysis and interpretation of conditions that exist.

The outcome of the study was the assessment of the Cavite Metro Credit

Cooperative’s participants in terms of: processing of loans, terms and conditions,

availability of funds, release of loans, and mode of payments.

Likewise, the range of financial services availed by the participants of the Cavite

Metro Credit Cooperative in terms of: type of loans, amount of loans, terms of payment,

no. of loans granted, no. of loans pending / in-process, no. of disapproved loans and

duration of processing will be an output of the study.

Sources of Data

In order to gather the needed data the researcher did library works, surfing the

internet/ website and readings on thesis to find the information and details needed in the

study.

Data Gathering Procedure

A permission from the Cavite Metro Credit Cooperative to conduct a study was

given to the researcher. The researcher also asked the possible help that the cooperative

employees might give to the researcher for progress of the study.

The researcher requested for the basic information of the Cavite Metro Credit

Cooperative’s members. A questionnaire was prepared and checked by the researcher’s

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adviser, technical and statistician. When the final draft was done, it was reproduced for

distribution to the participants. A total of 100 questionnaires were distributed. After several

days, data from the respondents was collected for tallying, tabular presentation and

interpretation.

Research Instrument

In this study, the data gathered by the researcher were taken from the primary and

secondary sources. The first set was the primary data for the cooperative members. The

data were collected through a questionnaire which was composed of: Part I – Profile of the

Participants. The data gathered on part of questionnaire consisted of the profile of the

participants in terms of: age, gender, civil status, monthly income, years of membership

and amount of share capital. Part II – Reason why people join the cooperative. This part

investigated the different personal motives of members in joining. Part III – Financial

Services Availed. This part was intended to find out what kind of loans the respondents

preferred and most acquired. Part IV – Assessment on the Financial Services. This part

intended to assess the financial services of the CMCC. Part V – Problems Encountered by

the Participants. This part sought the problems on the financial services offered by CMCC.

Part VI – Suggestions of the Participants. This part intended to know the suggestions or

comments of the participants to the cooperatives.

The researcher provides a cover letter in each questionnaire that contains

introduction of the researcher, purpose of the study, assurance to the participant’s

confidentiality and researchers appreciating remarks.

The second set of data was given by the cooperative staff based on the official

records like financial statement, membership records, and other documents.

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Data Analysis

The data was analyzed and interpreted using the descriptive statistics and inferential

statistics, specifically, frequency and percentage. The weighted mean was used to compute

and measure the respondents’ rating on some important issues. To determine the profile of

the participants in terms of: age, gender, civil status, monthly income, years of

membership; and amount of share capital. To determine what are the reasons of the

members in joining the cooperative. Identify the financial services availed by the

participants according to the following: type of loans, amount of loans, terms of payment,

no. of loans granted, no. of loans pending / in-process, no. of disapproved loans and

duration of processing. Assess on the financial services by the participants of the Cavite

Metro Credit Cooperative in terms of: processing of loans, terms and conditions,

availability of funds, release of loans; and mode of payments. To determine the problems

encountered by the participants. To determine if there is a relationship between the profiles

of the participants and they have availed; and relationship between the profiles of the

participants and their assessments of the Cavite Metro Credit Cooperative.

Sampling Technique

Quota and Purposive Sampling were employed in the study. The researcher chose

the sample size of 100 and was distributed in different Barangay of Imus City, Cavite

namely; Bayan Luma, Tanza Luma and Patindig Araw.

The main goal of purposive sampling is to focus on particular characteristics of a

population that are of interest, which will best enable you to answer your research

questions. The sample being studied is not representative of the population, but for

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researchers pursuing qualitative or mixed methods research designs, this is not considered

to be a weakness. Rather, it is a choice, the purpose of which varies depending on

the type of purposing sampling technique that is used.

Statistical Treatment of Data

To give meaning to the data gathered and a clear picture of the study, following

statistical formulas were used:

1. The researcher used the Frequency Distribution - to prepare the tables

containing the categories, values or class intervals, and their frequency of occurrence will

be interpreted.

2. The researcher used the Percentage Distribution - to show the relationship

of one part to its whole. Multiple choice answers are tabulated and percentage was

computed relative to the frequencies of responses using the formula below.

Formula: f

P = N x 100

Where: P = symbol for percent

f = frequency

N = total population

3. The researcher used the Likert Scale - to measure the assessment on the

financial services by the participants of Imus City.

Scale Mean Standard Verbal Interpretation

5 4.20 – 5.00 Never

4 3.40 – 4.19 Seldom

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3 2.60 – 3.39 Often

2 1.80 – 2.59 Very Often

1 1.0 - 1.79 Always

4. The researcher used the Chi-square – to test of difference between the

observed and expected frequencies. This was used to know if there is significant

relationship between the socio-economic profile and financial service availed.

5. The researcher will use the Cramers V to determine if there is significant

between the profile and financial service assess by the members of the Cavite Metro Credit

Cooperative.

Formula:

RESULTS AND DISCUSSION

This chapter presents the presentation, interpretation and analysis of data that serve

as answers to each of the problems raised in chapter 1.

Profile of the Participants

The participants were interviewed and were categorized according to age, gender,

civil status, monthly income, years of membership and amount of share capital.

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Age. Table 2 shows that 49 % or a total of 49 participants belonged to the age

bracket 51-65 years old; 20% or a total of 20 participants belonged to the age bracket of

35-55 years old; 19% or a total number of 19 participants belonged to the age bracket of

20-35 years old; 9% or a total number of 9 participants belonged to the age bracket 66-80

years old 3% or a total number 3 participants to the age bracket of 81 years old and above.

Majority of the participants belongs to the age bracket of 51-65 years old.

Table 2. Profile of the Participants According to Age

Assessment on the Financial Services of the Cavite Metro Credit Cooperative

The participants assessed the financial services of the Cavite Metro Credit

Cooperative and it categorized according to the processing of loans processing of loans,

terms and conditions, availability of funds, release of loans and mode of payments.

Processing of Loans. Table 27 shows the assessment on the CMCC by the

participants in processing of loans. The rating had the choices: always, very often, often,

seldom and never.

On the results, the participants rated the processing of loans in terms of: (1) must

be filed personally loans application (2) CMCC members must complete the requirements

before submitting their application (3) CMCC adopts the first come, first serve basis (4)

submitted their application before the cut-off for the processing (5) acceptance for the loans

Age Frequency Percentage

20-35

36-50

51-65

66-80

81 and above

19 19

20 20

49 49

9 9

3 3

Total 100 100%

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within the office hours (6) participants are not required to submit their collateral as their

requirements “always” as its verbal interpretation.

The over all mean score of the participant assessment on the CMCC in processing

of loans was 4.90 with SD of .14 and the verbal interpretation was “always”.

Table 27. Assessment on the Financial Services in terms of Processing of Loans

Processing of Loans Mean SD VI

1. Application for loans must be personally. 4.94 0.24 Always

2. CMCC members must complete their

requirements before submitting their

application for loan.

4.98 0.14 Always

3. The lending system adopts the first come,

first serve basis. 4.90 0.36 Always

4. Submission of loans has a cut-off date to

give enough time for its processing. 4.96 0.20 Always

5. Acceptance of loans must be made within

office hours. 4.89 0.37 Always

6. Members are not required to submit

collateral to accomplish the processing

papers.

4.75 0.60 Always

OVERALL MEAN 4.90 0.14 Always

Table 32 shows the summary of the assessment on the financial services. It implies

the majority of the participants rated the processing of loans, terms and conditions,

availability of funds, releasing of loans and modes of payments is “always” as its verbal

interpretation. The participants are satisfied and contented in the treatment and services

offered by the CMCC.

Table 32. Summary of the Assessment on the Financial Service

Assessment Mean Verbal

Interpretation

1. Processing of Loans 4.90 Always

2. Terms and Conditions 4.73 Always

3. Availability of Funds 4.94 Always 4. Releasing of Loans 4.89 Always

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5. Modes of Payment 4.92 Always

OVERALL MEAN 4.92 Always

Relationship between the Profile and Financial Service Availed

Table 33 shows the result of chi-square test of the relationship between the

participant socio-economic profile and financial services in terms of: age and providential

loan. The computed chi-square value of the relationship of age and providential loan is

2.681 with 4 degree of freedom and p-value .613 which is insignificant at 0.05 level of

significant; the decision is to accept the null hypothesis. Thus the researcher concludes that

there is no significant relationship between the two; age is not related in granting

providential loan.

Table 33. Chi-square Result for the Relationship between the Profile and Financial Services

Availed

Socio-Economic Profile Chi-Square

Value

df Asymp. Sig.

(2 sided)

Decision

Significant Relationship

between the Age

and Providential Loan

2.681 4 .613 Accept Ho

SUMMARY, CONCLUSIONS, AND RECOMMENDATIONS

Summary

The paper focused on the assessment on the financial services of Cavite Metro

Credit Cooperative in Imus City, Cavite, it aimed to: determine the profile of the

participants of the Cavite Metro Credit Cooperative; determine the reasons in joining the

cooperative; identify the financial services availed by the participants; determine the

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assessment on the financial services by the participants of the CMCC; determine the

problems encountered by the participants; determine the suggestions by the participants;

determine if there is a relationship between the profile and financial service availed by the

participants; and determine if there is a relationship between the profile and the assessment

on the financial service by the participants of the Cavite Metro Credit Cooperatives.

The study was conducted in the City of Imus. The researcher used quota and

purposive sampling in getting the specific sample size. A total of 100 samples were

targeted.

In comparing the results of the assessment on the financial services of the Cavite

Metro Credit Cooperative, descriptive such as frequency count and percentage distribution

were to discuss the profile and financial service availed, inferential statistics, weighted

mean, standard deviation and Cramer’s V.

The study revealed that majority of the participants who availed a loan in the Cavite Metro

Credit Cooperative were females, married, belong to the age bracket of 51-65 years old,

have a monthly income of Php1,001-Php5,000, 1year-5years length of membership and

Php1,001-Php20,000 amount of share capital, the reasons in joining the cooperative.

Majority of the participants answered that was to augment financial needs. And types of

loans mostly availed by the participants was Providential Loan.

The study also revealed the assessment on the financial service by the participants

of Cavite Metro Credit Cooperative in terms of: processing of loans, terms and conditions,

availability of funds, releasing of loans and modes of payments were positive.

Furthermore, it had a poor record management, insufficient facilities and lack of

area to accommodate all the members during the loan applications/seminars. And the

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suggestions by the participants would be benefit the members and the cooperative regards

to their facilities improving, widen the area to accommodate all the members during loan

applications/seminars and improving the record management.

The results of the chi-square test for getting the relationship between the profile

and the financial service availed by the participants showed that there is no significant

relationship.

The results of the Cramer’s V value for getting relationship between the profile

and assessment on the financial services by the participants showed that there is no

relationship between the profile and the assessment on the financial services by the

participants.

Conclusion

The study revealed that the majority of the participants who are availed loans in the

Cavite Metro Credit Cooperative were female, married, belong to the age bracket of 51-65

years old, have a monthly income of Php1,001-Php5,000, 1year-5years length of

membership and Php1,001-Php20,000 amount of share capital, the reasons in joining the

cooperative was to augment financial needs. In 5 different types of loans, Providential Loan

was mostly availed by the participants. Majority of the participants availed the amount of

loan Php1,001-Php20,000 and used 1month-6month terms of payment.

In the result, assessment on the financial service availed by the participant in terms

of: processing of loans, terms and conditions, availability of funds, releasing of loans and

modes of payment were positive and “always” as its verbal interpretation.

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The hypothesis of the study were accepted on the relationship between the profile

and the financial service availed by the participant because of the result in chi-square test

showed that the p-value was more than the present level of significance, thus it has no

relationship; and the relationship between the profile the assessment on the financial

service by the participant of the Cavite Metro Credit Cooperative because of the results in

Cramer’s V test showed that the assumption significant more than the present level of

significance.

Recommendation

Based on the findings and conclusion of the study, the following recommendations

were given:

The Cavite Metro Credit Cooperative must develop, improve and expand their

facilities and area to accommodate all the members so that there is available space during

seminars/trainings.

The study will serve as a stepping stone to those students who wish o conduct a

similar study. The researcher recommends that if they conduct the same study they must

increase the total number of sample, (much better if they could get the total population to

avoid biased results). It will be much better if other researchers will conduct the same

research in other cities outside Cavite and make comparative analysis.

Generally, the assessment on the financial service by the participants of Cavite

Metro Credit Cooperative in terms of: processing of loans, terms and conditions,

availability of funds, releasing of payments and modes of payment were positive.