Core Principles of Microfinance NGOs.
Section 5
SEC. 5. Core Principles of Microfinance NGOs. – Microfinance NGOs shall conduct its operations in accordance with the basic principles of microfinance which include, but are not limited to, the following: (a) The State recognizes Microfinance NGOs as its effective partners in promoting social welfare and development and pursuing poverty alleviation and holistic transformation and acknowledges microfinance as a viable solution to empower the poor; (b) The poor shall be given access to appropriate financial services that are convenient, flexible and reasonably priced including, but not limited to, credit, savings, and insurance; (c) Microfinance shall be undertaken on a sustainable basis, where providers shall be able to recover all of its costs to allow sustainable operation and regular provision of financial services to the poor; (d) Microfinance NGOs shall aim to provide both financial and social protection programs to an increasing number of disadvantaged and for underprivileged people; (e) Microfinance NGOs shall abide by the Client Protection Principles such as, but not limited to, appropriate product design and delivery, prevention of over-indebtedness, promotion of transparency, practice of responsible pricing, fair and respectful treatment of clients, privacy of client data, and mechanisms for complaint resolution; (f) Microfinance NGOs shall develop financial, social and governance performance standards that shall help define and govern the industry toward greater outreach and sustainability; and (g) Microfinance NGOs shall develop and provide the appropriate community development projects and programs to ensure attainment of social welfare and holistic transformation of the poor.