Selling Peanuts & Boiled Eggs

We recently made a loan to Ligaya so she can setup a small area to sell peanuts and boiled eggs. This is in the Metrotown Mall area next to the Tricycle (Taxi's) waiting area. On the first day she earned $310 pesos - Tripling her income. The photos are of the items purchases with the loan and Rodel and Mr. Ligsay helping her setup and start selling. This was a great loan that will benefit her now and in the future. Great job Rodel and Mr. Ligsay - Thanks, Steve

Volunteers are Helping US

This is Mr. Fernando F. Ligsay. He volunteers his time to help us find more people to help. Thanks!

Rodel and I have spoken about the need for Volunteers to help us find and support our Micro Banking Recipients. Rodel has a friend named Mr. Fernando Ligsay that is doing just that. He is helping with finding and assessing the needs of those we can help. These photos show him and our current potential recipient Ligaya. We want to thank Mr. Fernando for his help. He is an unpaid volunteer helping those in his community. Thank You.

Our 5th Applicant Ligaya

Mr. Ligsay (our PEFEP volunteer) and I visited our 5th applicant Ligaya in her apartment.
We also interview one of her neighbor name Aling Baby the one in the picture wearing duster Shirt. She was happy for her friend. She never even think that this organization exist willing to give Loan without colateral and interest especially for poor like them. she thought at first it was just kinda joke. The PEFEP applicant network will broaden in short time, some applicants from remotest area of Tarlac City will come for Micro Loan.

I attached pictures of our applicant.

Thanks,
rodel

Ligaya is 63 - Needs Loan

Hi Steve,

Our 6th Micro Financing Applicant her name is Ligaya, 63 Year old residing at Suba Matatalaib, Tarlac City.
She was born in 1946 widow with two sons. Her sons were already married living with their own families. Same as her they are living in poor situation, no permanent work / job (no permanent income). We found her selling Fried Peanuts in streets. Like our qualified 4th applicant Florencia Escoto, she was also borrowing from small capitalist with 20% interest for P500.00 loan just to resell peanuts, and the loan payable on a per day basis.

As I interview her, I found out that she was wishing to setup at least small store selling eggs, noodles, peanuts, candies in small side park near tricycle waiting area of Metro Town Mall but she had no source of having the initial capital to start up her plan.

With Mr. Ligsay we estimated the cost of initial capital needed for this plan;


Products Estimated Sales Income

Item Description Unit Price Amount Unit Price Retail Price Income Total
50 Pcs. Balot Eggs P8.00 P450.00 P8.00 P11.00 P3.00 P150.00
50 Pcs. Noodles Pack (instant) P14.00 P700.00 P14.00 P17.00 P3.00 P150.00
2 Kilos Peanuts P100.00 P200.00 - P280.00 P80.00 P80.00
3 Packs Assorted Candies P30.00 P90.00 P.60 P.85 P.15 P22.50
Total P392.00 / Day
Others

1 Small Coal Stove (for Steaming Balot Eggs) P65.00
1 Sack Charcoal P120.00
1 Pan (for Balot Eggs) P245.00
1/2 Kilo of Salt P25.00
3 Small Plastic Box (for Candies) P75.00
2nd Hand Table P650.00
2nd Hand 3 Plastic Chairs P120.00
Total Amount (Capital) P2980.00

“Note” Estimated income sales P300.00 – P392.00/Day
“Granted Loan payable in 6 Months (Max. Term)”

I will email you again for the other update, pictures, and the exact location where she planned to put-up the store.

Please I need your comments and suggestion on this.

Thanks,
rodel

Photos of Tarlac Philippines -

I enjoy seeing general photos of the area our Micro Bank is involved in. I asked Rodel to take some photos. I find them very interesting.

These are photos of Tarlac Philippines. This is the city where our Micro Bank operates.

Emily Opens a Canteen

We loaned money to this mother and she is doing great. Rodel Writes:

Now she's selling PANCIT, SOPAS, early in the morning and she's making Ph200.00 income from that, in the afternoon she sell Barbeque's, BananaPuding, KamoteQues, her estimated income (net average) Ph360.00/day

I did not have the chance to take pictures of SOPAS and PANCIT (beakfast menu), because it was too early, 7:30AM-8:00AM these menu already sold out to students, employees who are in a hurry for work.

Rodel sent me some nice photos of the city he lives in "Tarlac City". He is working on opening a bank account so we have a place to store the money that comes back in from loan repayments.

Rodel is also working on recruiting people to help him find loan canidates. These individuals would not be paid.

Florencia's gets $25 loan

Florencia is given her $25 loan from Rodel to allow her to start selling Balot & Penoy (Boiled Eggs) along with the peanuts she already sells. This is expected to double her income.

Florencia's response to the loan was that she wanted to repay the loan little by little beginning next week.

Florencia makes $2/day

(Rodel Writing) Hi Steve,

Yesterday at 4:30 PM, I interviewed again Florencia while she’s selling Peanuts in San Nicolas Elem. School, I asked of her other plans and how she’s going to repay if ever she was granted for loan to sell Balot & Penoy (boiled eggs).
For a loan of Php1, 000.00 (U.S. $21.27) is enough for her to start selling Balot & Penoy, and she agreed to repay the amount in 2 months.

I went to market found costing for Balot product:

Dealer Price Selling Price Income
1PC. Balot Php 7.00 Php 10.00 Php 3.00

If she can sell 50 – 100 pcs/day, she will earn Php 150.00 – Php 300.00/day
Her income from selling Fried Peanuts is only Php 90.00 – 110.00 per day.
She’s planning to sell Fried Peanuts during day, Balot & Penoy in the evening.
Thanks, Rodel

(Steve) - We are going to make this loan. The money is on the way.

Florencia - sells Fried Peanuts

(Rodel) I met our 4th Micro Finance Applicant and made an initial interview. Her name was Florencia, She's 77 years old selling Fried Peanuts in streets. Like other applicant we had, she used to borrowed capital from small capitalist offering 20% interest for every granted loan. Last month she said, she borrowed P500.00 and repaid in the amount of P600.00

As i talked with her, she said that All she need is an additional capital of P1,300 ($30) to sell peanuts and Boiled eggs (called BALOT at PENOY in Philippines).

I will interview her again tomorrow to find out more about her and other plans she had in mind.

(Steve) As of this posting, we have not yet made the loan. I am awaiting the outcome from the interview Rodel said he would conduct.

Emily want to Open Canteen

Photos of Emily's Street, note the Tricycle taxis. Click on the Photo to enlarge, then back to return. Emily is the mother of 4 children and wants to open a street Canteen to increase their income. Her husband drives a Tricycle Taxi full time and earns about $4 per day.

This is the current Canteen. Note the yellow chicken feet cooking.

Rodel found Emily. (Rodel)
I got another Micro financing Applicant.
Her name was Emily, she was Latter-day Saints member for 1 year and half.
Recently sealed with her family last October 18, 2008. I Interviewed her yesterday and i think she's qualified for our program.

Name: Emilyn
Age: 35 Years Old
Address: Squatters Area)
Civil Status: Married
Religion: Latter-day Saints
Occupation: None
Spouse: Romeo
Age: 33 Years Old
Occupation: Tricycle Driver

Children:

Jason Age 12
Jamil 10
Jerome 8
Jaime 6
John 3

How They Earned for Their Living
* Her husband income as tricycle driver.

His pay ranges from P150.00 - 250.00/day (U.S. $3.19 -5.31/Day)

What Help Needed
* Emilyn planning to set-up small canteen (Karenderia) selling Bananas, Kamote ques
and Viands to nearby residents of Caruba, Carangyan (the place they were presently residing)
* She would be needing small capital to start her (Karenderia) Canteen.
Things Needed to set-up her Canteen

1 Stove 795.00
4 Casseroles Pans 580.00
2 Sacks of Charcoal 240.00
Bananas 1,100.00

Kamotes (Sweet Potato)
Others: for Viands
Total 2,715.00

* Note: My wife and I personally canvassed for the best price. Items are available from sidewalk vendors

A loan of about $70 will permit her to setup a canteen.

Mission Statement

This is a photo of Rodel talking to me on Skype using web cameras. Rodel is our Micro Banking Represenative in the Philippines. He finds the canidates for loans, comes up with ideas to improve their income, prices out the cost of those ideas, picks up the money transferred from the U.S., makes the purchases needed for the applicants, delivers the equipment and then helps them implement and succeed.

Our Mission Statement is

"To Eliminate Poverty through Small Interest Free Loans"

How it works:

1) We provide small interest free loans to the poor that will enable them to expand their income.

2) We help them with ideas of ways to improve their income.

3) We will provide training and other assistance to maximize the individual’s chances of success.

4) Over time they will repays their loans. These funds are then used again for more loans.

5) Loans repayment plans will be individualized to the lenders ability to repay.

Process for finding and making loans:
A) Rodel will find individuals and qualify them.
B) Steve, Rodel and our growing group will assist in ideas to expand their income.
C) Steve, Rodel and our growing group will decide if the loan qualifies to be funded.
D) Applicants will agree to the plans and begin learning how to best expand from Rodel.
E) Steve will send funds via Xoom.com to Rodel
G) Rodel will purchase the items for which the loans are made.
H) Rodel will deliver the goods and help implement the plan.
I) Rodel will monitor the applicants success and assist in their success.

J) Rodel will collect the loan repayments and put them into a bank account for the future.

Back Office:

A) Steve will pay Rodel $75 per month for his part time work as our MB Representative.

B) Steve will pay for Rodel's internet. $12/mo.
C) Steve will fund the loans and look for others that want to donate.

D) Steve will build a website to track progress. http://www.microbankingphilippines.blogspot.com/

Ben get's a Loan

Here Ben is shown with the additional bags of coal and rice along with the scale purchased with the loan.

12/20/08

Ben was very happy when he received the capital he needed for his micro business.
I bought the weighing scale, and teach him the proper used of it, also basic selling, and price mark up for his product. He then bought 4 sacks of Charcoal and 1 Sack of rice. He packed the Rice in per kilo. He started selling his products yesterday, and I visited him this afternoon he said his making Ph112.00 net income, this is twice of his income before.
He was very thankful for the help you extended to him.
Please see the attached picture.
Thanks,
Rodel

12/29/2008


Regarding Mr. Benjamin Tolentino;

His condition getting better, his income was now sustainable for his everyday living.
The last time i visit him he was happy and very thankfull for your help you extended to him.

Thanks,
rodel

Ben - Sells Coal on the Street.

These are photos of Ben repackaging coal to sell and his home.

Hi Steve,

I have here the information regarding our 2nd Micro Financing Applicant. His name was Benjamin. He cannot remember his date of birth and even his age, his alone leaving in a warehouse and selling charcoal his only means for a living. His married, no children because of desease (i think it's mans testicle desease), his wife passed away 15 years ago.

Everyday he buy charcoal, repacked and sell. He earned a net income of Ph46.00 to ph50.00 /day ($.63 - $1.06).

I attached some of pictures taken from his warehouse where same he lives.

rodel

Rodel then wrote me with more info and a solution;

WHAT HELP NEEDED?
· Additional capital for him to meet the minimum buying requirement to get high discount of at least 20% per sack of charcoal.
· Selling repacked rice. (This way will boost his income by 200%) and i will be the one to deal with the Charcoal and Rice distributor so that they would give consideration and oppurtinity for Micro Business owner like Ben, our MF applicant.
ESTIMATED CAPITAL FOR FUNDING

Description Retail Amount Est. Net Income

2 Sacks of charcoal Ph 230.00 ($4.89) Ph 46.00 ($.97) / day (50 packs sold)
1 Sack of Rice Ph 1,200.00 ($25.53) Ph 150.00 ($3.19) / day (50 Kilos sold)

Others Amount

Weighing Scale Ph 1,300.00 ($27.65)

Total Amount to lend Ph 2,730.00 ($58.00)

Rodel

Elisabeth Gets her Loan

A few days later I recieved this email from Rodel:

Steve,

Elisabeth was very happy with the Tricycle bike, her children too. She's hoping that someday she will meet you personally, thanking you for the whole hearted help you extended to her family. I saw her smile when she got the Trcycle, i cannot figure how thankful and excited she was.

Steve, if you can send me some video or recording of your message for our MF Applicant, please do. I know it will help them develop faith and trust in God, because i'm always telling her that the people behind this project were God inspired to help the very poor people like her family.

By the way Steve, Elisabeth net income got up to PH200 -320 per day, (Her income had been P150 - 200/day) sales getting better.
I monitor her activities everyday and counsel her on the things that she needs to do to have sustainable income for her family.

Rodel

Elisabeth - Our First Project

Elisabeth is a widow with 2 children. She earns $3 to $5 per day. She lives in a squatter area of town and needs to find a way to earn more money and watch her children at the same time.

This is the entrance to her home.

This is an email from Rodel (our microbanking representative) to me.

Our Micro Financing Applicant was Elisabeth, she is 34 years old widow with 2 kids, namely Rachel (11 years old) and Raymart (10 years old).
Residing in Tarlac. there is no street # because it was squatters area. She used to sell kalamay (baked rice) for a living, sometimes with her two kids helping her in carrying the basket, selling to areas by walk. They do this everyday, she said if they will stop for a day selling KALAMAY they would have no food to eat. This is the only way Elisabeth know to support her children.

By selling KALAMAY she earned P150 - 200/day with spending capital of P500 ($10.63). not enough to sustain her family. The average budget to sustain an individual range from P350 - 600/day. in the case of Elisabeth, there are categorized, the very poor people. She said, when shes out of budget in preparing her product she always turn to BOMBAY they called it here 5'6'(small capitalist) offering loan for 20% interest, no choice for her she said, and this loan will then be payable per day basis.

Steve, the thing i can see to help her earn at least average income of P350 - 400/day:

- If she can sell her product carrying by PEDICAB (Tricycle Bike) it would help get her KALAMAY to other market place. It would increase her sales by 80%
she would probably have P270 - 350/day, net income.

Estimated Micro Finance Capital of P2,750.00 ($58.50)

* 2nd hand Tricycle will cost P2,000.00 ($42.55)
* For her KALAMAY product P750.00 ($15.95)

I attached some pictures for evaluation. I've took these pictures when visit her in their residence.



Rodel

How it all started

Here is the story. I have a son in the Angeles, Philippines Mission. Paul has about 6 months to go on his mission. (I attached a picture of him and his zone). He is the tall blonde in the upper right corner. He wrote me a few months ago about his desire to come home from his mission, study business and become a successful business man so he could return to the Philippines and start a business that paid a good wage. He had just learned that a family he was teaching had an older son that just got a good job. The family was very happy because this son would be paid $3 per day to work 12 hours on a farm plus a one hour bus ride to and from the job. The family was excited about the additional income.

Paul’s desire to help the poor reminded me of something I learned about a few years ago called Micro Banking. Micro Banking is making loans to the poor that would otherwise be unable to get loans. The story I remember reading about Micro Banking and how it started goes like this. (This is from my faulty memory)

In the 1970’s a Supreme Court Judge in India was concerned for the poor that were literally dying of starvation outside the building he worked in. He took it upon himself to find the reason for their poverty. He went to a small village of 25 to 30 families nearby to learn more. The homes in the village were of dirt floors and bamboo walls and roofs. No running water, plumbing or electricity. The children did not attend school and hunger was always present.

He started with a woman that had 2 or 3 kids and no husband. He asked her what she did for a living. She said she made furniture out of bamboo. He inquired about the details. She said a man brought her bamboo and she soaked it then bent it into furniture and gave it back to the man who brought her the bamboo. She earned twenty-five cents a day for this work. He began to think how he could improve her life. (This is key to successful Micro Banking, as the poor often do not know how to make their situation better, like the rest of us.) He asked her how much money it would cost to buy the bamboo herself and then sell it herself. She responded, “twenty-five cents”. He then loaned her twenty-five cents interest free. He went to the other homes in the village and did the same depending on their situation. In total he loaned out $25 dollars. Within 2 years, everyone in the village had cement floors, running water, electricity, kids attending school and food in the house. For $25 dollars the lives of 25 families changed forever. This is the essence of Micro Finance. (MF) By the way, all the loans were repaid in full.

So I told Paul, my missionary son in the Philippines’, about Micro Banking (MB). I asked him to find “one good man” that we can trust. This “one good man” would be our paid Micro Banking Representative in the Philippines. He would find the poor, assist them, make loans and be our representative. About a month later, Paul wrote back and said he had found the “one good man” His name is Rodel. Rodel is 33, married with 3 children. (Picture attached.) In the past two or three months I have contacted Rodel and we have worked together to setup our own MB project. Getting started was slow. Just getting money to him was a process. We now use www.emoneygrams.com I paid for a computer for his home so I could communicate with him. He put an additional $350 dollars of his own money into my $400 and upgraded the computer himself without my knowledge because he wanted it to work well. I pay for the internet at his home so we can communicate through email and Skype. (Web Video Cameras)

Rodel works full time at a call center. He earns about $160 U.S. per month at the call center working full-time. I pay him $75 U.S. per month for his part time work with me and the MF Project along with the cost of the internet which is about $12 per month. It is my goal to get enough financial backing and commitment to make Rodel a full-time employee. This would allow for many more loans to be made.

The next blog describes our first canidate for Micro Banking.