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

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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
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

Figure 1. Conceptual Paradigm on the Assessment of Financial Services of the
Cavite Metro Credit Cooperative in Imus City, Cavite

Hypotheses of the Study

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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 moderateincome 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 nonmembers. 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: P Where: P f N 3. = = = = N x f 100

symbol for percent frequency total population

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

financial services by the participants of Imus City. Scale 5 4 Mean Standard 4.20 – 5.00 3.40 – 4.19 Verbal Interpretation Never Seldom

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3 2 1 4.

2.60 – 3.39 1.80 – 2.59 1.0 - 1.79

Often Very Often Always

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 Age 20-35 36-50 51-65 66-80 81 and above Total Frequency 19 20 49 9 3 100 Percentage 19 20 49 9 3 100%

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

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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 Application for loans must be personally. CMCC members must complete their requirements before submitting their application for loan. The lending system adopts the first come, first serve basis. Submission of loans has a cut-off date to give enough time for its processing. Acceptance of loans must be made within office hours. Members are not required to submit collateral to accomplish the processing papers. OVERALL MEAN Mean 4.94 4.98 SD 0.24 0.14 VI Always Always

1. 2.

3. 4. 5. 6.

4.90 4.96 4.89 4.75

0.36 0.20 0.37 0.60

Always Always Always Always

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 1. 2. 3. 4. Processing of Loans Terms and Conditions Availability of Funds Releasing of Loans Mean 4.90 4.73 4.94 4.89 Verbal Interpretation Always Always Always Always

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5. Modes of Payment OVERALL MEAN

4.92 4.92

Always 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 Significant Relationship between the Age and Providential Loan Chi-Square Value 2.681 df 4 Asymp. Sig. (2 sided) .613 Decision 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.