POLICY ON SAVINGS

I. Prologue: The financial model of the Homeless Peoples Federation, Philippines, (HPFP)
is based on savings mobilization by its members. It was first introduced in 1995, to a small
group of volunteers in Payatas, Quezon City who agreed to experiment with the new idea
of a community-based and operated savings program. It was an effort at finding an
initiative that could reach out and respond to the needs of an increasing number of poor
families in the area while remaining operationally viable. This was also seen as a possible
alternative to the existing micro-finance program that barely had 350 members in its two
years of operation. Several factors contributed in making the existing program unviable.
Two of the most notable were its high dependence on staff resources and low savings
mobilization from its members.

In contrast, the new scheme rapidly attracted community members. As word of the
scheme spread in the community, numerous groups started to come to the parish center
to request for orientations and apply for membership. Within one year, the savings
scheme had 2,000 members; and in two years, it had 5,300 depositors. These members
belonged to about 540 savings groups that included mothers, jeepney and tricycle drivers,
market vendors, school children, and the elderly.

The news of this scheme also reached communities in other cities and provinces, and
soon the savings scheme also began to be replicated in these localities, while maintaining
links with Payatas. By 2001, there were over 8,000 enrolled members in Payatas alone,
and more than 27,000 members nationwide, with accumulated savings of US $700
thousand.

II. Applicability: This savings policy shall generally apply to all HPFPI communities (HOA,
PO) and other network associations which availed or intend to avail HPFPI assistance in
any form. For HPFPI communities, savings is a membership requirement and a
precondition for loan application in case of network associations.
III. Definition of Terms
A. HPFPI Savings: Savings is the process practiced by HPFP communities whereby
the member allocates a certain amount of money compulsorily for a certain
purpose and remits the same to the assigned collector or directly to the area
resource center (ARC) or HPFPI Regional/Satellite Office In-Charge. Savings is
either managed by the savings group, community association/homeowners
association or the area resource center (ARC) in-charge. The savings can either
be withdrawable or non-withdrawable depending on the kind of savings the
member prefers. The amount gathered collectively shall then be deposited to the
communitys bank account for safekeeping. Ultimately, this process is observed to
establish a habit of savings and create a community fund or resource which can
be used for a collective purpose in the future.
B. Area Resource Center: Area Resource Centers (ARCs) and satellite offices serve
as the nerve centers that manage all the financial activities of savings members of
HPFPI and its urban poor network communities. The ARCs are responsible for
savings collection, administering savings and loans, recording of financial
transactions, consolidating the reports of satellite offices and preparing regular
 financial reports. Apart from its collection and disbursement facilities, the ARCs
likewise serve as the nexus of communication, repository of plans and legal
documents and source of technical support to communities. Each ARC has a
designated ARC-in-charge and a coordinator whose functions are to oversee and
manage the financial operations and facilitate community mobilization, organizing,
regular meeting and updating with savings members.
C. Savings Groups: are the basic organizational unit for savings collection and loan
guarantees. These are also known as Low Income Housing Groups (LIHGs) for
communities that plan to undertake or are have ongoing land acquisition initiatives.
D. Group Collectors: collect savings from members through doorstep banking and
remit them to satellite offices and Area Resource Centers (ARCs). Collectors also
act as co-guarantors to borrowing members.
E. Satellite Offices: are sub-offices in areas that are relatively far from ARCs. They
function as collection and disbursement centers for surrounding communities.
IV. Kinds of HPFPI Savings:
The HPFPI implements different types of savings to cater to the varying needs of its
member and network communities. Below is the list of these savings with their
corresponding features and policies.
a) Compulsory Savings - usually done in groups of 5-10 members. The maximum
savings per week ranges from Php250-Php500 per savings member. The
maximum amount of savings per week and the repayment performance of
members serve as bases for loanable amount, which range from 1.2 to 1.8 % of
the total amount of savings.
b) Voluntary Savings- specially cater to individuals instead of groups. This type of
savings is not loanable but can be withdrawn anytime. There is no maximum
amount of savings specified under this category.
c) Land and Housing Savings- usually implemented by communities/groups that
intend to acquire land. This savings can be withdrawn only for housing and land
acquisition payments.
d) Urban Poor Development Savings/ UPDF- requires a Php50 monthly savings
per individual member. This type of savings can be withdrawn only by the
community (not by individual members) to finance community projects involving
land purchase, house construction, basic infrastructure, small-scale settlement
upgrading projects, and livelihood support. This serves as the federations
counterpart to a pool of funds to which donor agencies, national and local
government agencies also contribute.
e) Welfare Savings- a thirty peso (30.00) mandatory contribution intended to be
used collectively for medical, disaster and funeral assistance.
f) Urban Poor Coalition Savings- an annual fifty peso (50.00) compulsory
contribution for international solidarity fund specifically for large scale slum
upgrading.
g) City-wide Development Savings/City Fund- is a compulsory monthly
contribution worth ten pesos (10.00) for the citywide fund. The funds purpose is
to address the HPFPI community capacity development and livelihood needs. It
can also be used as a leverage fund to access government support.
 h) Youth Savings- is a voluntary contribution of specific youth groups formed within
HPFPI communities. Member contributors age bracket usually ranges from 4 to 25
years old.
*Based on the 2007 HPFP community fund model
Compulsory Savings
o done in groups of 5-10 individuals
o provides the basis for loans, which range from 1.2 to 1.8 of total amount of savings, depending on repayment
performance
o interest rate for loans is 18 percent per annum*
o maximum savings of P250-500 per week (or maximum savings amount per week eligible as basis for loanable
amount; the ceiling serves to prevent disproportionately large loan amount issued to any one individual as the loan
amount is a multiple of the savings denying others of the same borrowing privilege)
Voluntary Savings
o done individually
o not loanable but can be withdrawn anytime
o no maximum savings
Land and Housing Savings (also referred to in some areas as Contractual Savings)
o maintained by groups preparing for land purchase
o withdrawable only for housing and land acquisition payments
o members may save:
before a land is identified, in which case, the land savings facility helps them accumulate the funds required
to pay the equity once they have identified a land and thereafter made a purchase agreement
after having identified a land or after having locked a deal with a landowner so that they can gradually
accumulate funds for the equity
in addition to paying monthly amortization so that members would have some funds to withdraw when
incomes are volatile and insufficient for the monthly amortization (as beneficiaries run the risk of being ejected
if unable to pay for three consecutive months, based on typical contract terms)
Mortuary Fund
o P1 monthly savings requirement and advance payment for 2 years, totaling P24 per individual
o provides benefits upon death of member of up to P10,000 in funeral expenses
o open only to active members, that is, those who are active savers and paying loans religiously
o open to family members, including children, who make the same contribution of P1 monthly and 24 months
advance payment, and whose parents or principals are active savers
o capitalizes on the presently large number of membership of the HPFP, estimated now at nearly 30,000 individuals
and expected to grow to 200,000 in a few years time especially with the introduction of this benefit
Urban Poor Development Fund
o P50 monthly savings requirement per individual
o contributes to a pool of funds to which national government, donor agencies and local government agencies also
contribute
o the accumulated fund from different stakeholders bridge-finances community projects involving land purchase, site
development, house construction, basic infrastructure, microenterprise support
interest rate is 9 percent per annum applied on a diminishing balance

Reference: Savings Matrix

URBAN POOR
Welfare Fund City Fund UPCA F
DEVELOPMENT FUND

50 30 10 50
 Ang kasaping samahan ang Ano ang WELFARE FUND? Ano ang CITY FUND? Ano ang UP
nagpapatupad ng UPDF savings Ang welfare fund ay Ito ay kontribusyon ng at para sa
Ito ay inilalaan para sa kontribusyon ng bawat bawat indibidwal na Ito ay kontrib
pangmalakihang indibidwal na kasapi ng miyembro ng mga bawat indib
pangangailangan ng samahan samahan na Php 30.00 samahang HPFPI na Php kasapi ng s
gaya ng pagbili ng lupa, bawat buwan 10.00 bawat buwan para sa inte
upgrading, livelihood at iba pang Ito ay tulong sa mga Ito ay compulsory. Bilang solidarity fund
gawaing pagpapaunlad ng indibidwal na kasapi ng mga kasapi ng HPFPI sa ibang
komunidad samahan sa panahon ng obligasyon ng isang komunidad s
Obligado ang lahat ng miyembro matinding pangangailangan. samahan na ipatupad ang labas ng
ng samahan na mag-impok sa pangongolekta ng city fund Ito ay pa
UPDF Para saan ang WELFARE sa bawat miyembro nito. pangangaila
Ang indibidwal na miyembro ng FUND? Ito ay hindi maaaring i- pederasyon
samahan ay kailangang mag- Ang pondo ay maaaring withdraw dahil isa itong malakihang
impok ng Php 50.00 pataas gamitin para sa: kontribusyon ngunit maaari (land acqu
kada buwan Pagpapagamot o pagpapa- itong utangin ng samahan upgrading
ospital ng kasapi (health Maaaring g
issues) pang-tapat
Pagtugon sa (leverage f
pangangailangan ng kasapi pondong mul
na nasalanta ng kalamidad atbp
(disaster) Hindi na ma
Pagkamatay ng kasapi withdraw per
(death) gawing coll
loan ng sa
 Hindi maaring i-withdraw ang
UPDF savings maliban lamang
kung aalis na ang miyembro sa
samahan
Hindi ito maaaring hiramin ng
mga indibidwal na kasapi, pero
maaaring hiramin ng mga
savings group sa loob ng
samahan para sa
pangangailangan ng grupo
(livelihood, education, health,
upgrading)
Ang mananagot sa utang na ito
ay ang partikular na grupo na
nangutang. Ang nahiram na
halaga ay may kaukulang
interest na 6% bawat taon. May
1.5% penalty kada taon kapag
hindi nakapagbayad sa takdang
panahon
Ang UPDF ay maaaring
gamiting pangtapat (pangtaya)
na pondo sa suporta o loan na
makukuha mula sa HPFPI,
pamahalaan, o iba pang mga
stakeholder.
Ang ipon na ito ay
pamamahalaan ng mga
samahan at sila ang mananagot
sa pondong kanilang
hinahawakan
Imo-monitor ng HPFPI ang
pondo para matiyak na
napamahalaan ng maayos ang
mga savings ng mga kasapi.
Paano ipapatupad ang Para saan ang CITY Sino ang ka
Welfare Fund? FUND? Mga sama
1. KOLEKSIYON Pang-tapat na pondo member ng
Ang pondo ay (leverage fund) sa mga ka-net
pamamahalaan ng mga suportang pondo ng Magkan
Regional Council (NCR, pamahalaang panlungsod kontribusy
Bicol, Central Visayas, at iba pang pondo mula sa Ang indibi
Western Visayas, labas ng HPFPI member ng
Mindanao) Layunin ng pondo na ay magbibiga
Ang Regional Council ang makapag-ambag ang minimum ka
magmo-monitor at pamahalaan sa mga taon
mamahala (manage) sa inisyatibo ng mga
welfare fund; ang pondo ay komunidad
ilalagak sa Regional Office Ito ay pangdagdag na
Ang pangongolekta ng pondo para sa palupa, site
kontribusyon ay isasabay sa development, pabahay, at
pangongolekta ng savings, iba pang upgrading projects
etc. (drainage, pathwalks) ng
Ang kolektor ng bawat samahan
savings group ay
responsable sa
pangongolekta nito
Ang bawat grupo ay
magkaroon ng sariling
record
Paano ipatutupad ang Para saan ang CITY Paano ipatut
WELFARE FUND? FUND? UPCA F
KOLEKSIYON (cont) Maaari ring gamitin ang city KOLEKS
fund sa pagpapaunlad ng Ang asosas
Ang perang makokolekta ay kapasidad at kaalaman ng mangongolek
ide-deposito sa banko mga kasaping HOA/CA kasapi nito a
Bibigyan ng resibo ng main tulad ng training activities, ang pondo s
collector ang mga group at learning exchanges kada t
collectors. Ito rin ay para sa mga May reko
May itatalagang auditor (sa proyektong pangkabuhayan koleksiy
national level) na titingin sa Layunin ng city fund na samahan, sa
welfare fund ng mga bumuo ng citywide network sa nationa
regions. ng mga komunidad na may
citywide fund
Layunin din nito na
makatulong sa
pagpapaunlad ng ugnayan
o partnership ng mga
komunidad at pamahalaan
 Paano ipatutupad ang Paano ipatutupad ang CITY Paano ipatut
WELFARE FUND? FUND? UPCA F
2. PAGGAMIT NG PONDO 1. KOLEKSIYON LOAN/COLL
Pang-ospital (Health) Isasabay sa pangongolekta POLIC
Magkano ang makukuhang ng buwanan o lingguhang Maaring umu
tulong na pang-ospital? obligasyon (tulad ng samahan k
P 1,000.00 bawat savings) ang proyektong
indibidwal na kasapi pangongolekta ng city fund communa
Requirements: Ito ay pamamahalaan benepisyo
a. Kailangang mayroong (manage) ng HPFPI laha
hulog katumbas ng isang Regional Council at ilalagak Maaring umu
taong kontribusyon (Php sa hiwalay na bank account isang sam
360.00 sa isang taon) Sa pag-remit ng city fund, aktibong nagh
b. Kailangang aktibo sa pag- HOA/CA level ang record UPCA fund s
savings (UPDF, compulsory, pero dapat kasama sa minimum n
etc) record ang pangalan ng Kailangang
c. May endorsement galing bawat indibidwal na may kasapi nito a
sa grupo (savings) o kontribusyon naghuhulog
asosasyon. Ang mga signatory ay mula
d. May dokumentong pang- sa kasapi ng Regional
medikal (medical certificate) Council
Isang beses sa isang taon
lamang maaring
makatanggap ng tulong
pang-ospital
 Paano ipatutupad ang Paano ipatutupad ang CITY Paano ipatut
WELFARE FUND? FUND? UPCA F
2. PAGGAMIT NG PONDO 2. PAGPAPAUTANG NG LOAN/COLL
Pangtugon sa Kalamidad CITY FUND POLIC
(Disaster) Priority ang mga samahang Ang sam
Magkano ang makukuhang may madaliang mangungu
tulong:? P 1,000.00 bawat pangangailangan kailangang
indibidwal na kasapi (immediate need, tulad ng nagpapatupa
Requirements: made-demolish, for ng savings s
a. Kailangang mayroong eviction, etc.) HPF
hulog katumbas ng isang Ang Regional Council ang Ang halaga n
taong kontribusyon magde-deliberate at maga- ay depen
b. Kailangang aktibo sa pag- approve ng aplikasyon ng kailanga
savings (UPDF, compulsory, isang HOA samahan/pe
etc.) LOAN TERM: Ang term
c. May endorsement galing (gaano katagal ang
sa grupo o asosasyon. pagbabayad) ay depende
Isang beses sa isang taon sa halaga ng kanilang
lamang maaring hiniram.
makatanggap ng tulong

Paano ipatutupad ang Paano ipatutupad ang CITY Paano ipatut

WELFARE FUND?
2. PAGGAMIT NG PONDO
Pag namatay ang kasapi
(Death)
Magkano ang makukuhang
tulong pag namatay ang
kasapi? P 1,500.00 bawat
indibidwal na kasapi
Requirements:
a. Kailangang mayroong
hulog katumbas ng isang
taong kontribusyon
b. Kailangang aktibo sa pag-
savings (UPDF, compulsory,
etc.
c. May katibayan na
namatay na ang kasapi
(death certificate, etc.).
FUND? UPCA F
2. PAGPAPAUTANG NG LOAN/COLL
CITY FUND POLIC
Ang maaaring umutang sa Ang magrere
city fund ay mga HOA/CA, ng kwalipi
hindi indibidwal na kasapi maglo-loan
Ang maaaring umutang ay Regional
mga kasaping komunidad Magsusumite
na aktibong naghuhulog sa samahan n
city fund; walang patlang kanyang pr
ang hulog sa loob ng bibigyan ng p
minimum na 2 taon may mat
Dapat bayaran ang inutang pangangailan
na pondo ayon sa propo
napagkasunduan o
kontrata. Kailangang mag-
submit ang HOA/CA ng
Board resolution sa
kanilang pag-aplay ng loan
mula sa city fund
 Paano ang computation? Paano ipatutupad ang CITY Paano ipatut
Halimbawa: FUND? UPCA F
10 ang miyembro ng bawat 2. PAGPAPAUTANG NG LOAN/COLL
grupo CITY FUND POLIC
Php 300.00 bawat buwan INTEREST: 6% per annum Kung ang uu
Total contribution ng isang (taon), straight; ito mababa
grupo sa isang taon: Php babayaran depende sa Php 1 milli
3,600.00 income profile ng isang pagbabayad
Total contribution ng 10 komunidad ng 1 hangga
grupo sa isang taon: Php May penalty na 5% bawat Kung ang uu
36,000.00 taon sa unpaid amortization higit pa sa
Pwedeng mag-renew o million,
Assumptions: umutang ulit kung pagbabayad
nabayaran na sa takdang ng 5 ta
1. Kung 10 ang panahon ang utang at kung Ang interest
magkakasakit: Php walang ibang komunidad na ay 9% baw
1,000/member= Php mas nangangailangan ng Ang amor
10,000.00 pondo. payment ay
30% ito ng Php36,000.00 na sa HPFPI
total contribution bawat taon
2. Kung 10 ang na-disaster:
Php 1,000/member = Php
10,000.00
30 % ito ng Php 36,000.00
na total contribution bawat
taon
3. Kung 4 ang namatay:
Php 1,500.member = Php
6,000.00
17 % ito ng Php 36,000 na
total contribution bawat taon
TOTAL na tulong:/year =
Php 26,000.00
Naiwang kontribusyon
ng samahan : Php
10,000.00
 ISSUES AND Paano ipatut
RECOMMENDATIONS: UPCA F
Maaari ba itong gawing LOAN/COLL
pondong pangtapat POLIC
(leverage fund) para Maaari rin
makakalap pa ng pondo hanggang 1
mula sa LGU at iba pang interest sa loa
stakeholders? dito ay mapu
Bubuo ng isang team upang HPFPI at an
pag-aralan kung paano ito ibabalik sa s
palalaguin upang mas bilang pondo
maging kapakipakinabang. interest r
(LEVERAGE/LINKAGE depende sa
WITH INSURANCE usapan ng k
COMPANY) asosasyon b
hindi hihigit
bawat
Ang pagbab
maaring wee
monthly, o
ayon
napagkasund
samah

Paano ipatut
UPCA F
LOAN/COLL
POLIC
Kung hindi m
ang sama
tamang pan
paghuhulog,
ito ng 2%
(weekly,semi
month
Maaaring um
ang isang s
mula sa pon
kailangang
muna ang
pagkakaut
 V. Objectives of HPFPI Savings HPFPs Savings program have the following objectives:
a) To reach out and gather people with different needs especially the poorest
households in the community;
b) To help the people integrate their resources (financial, talent, skills) in order to
improve the quality of life of their family and community;
c) That the people gathered shall live and work as a community for genuine
grassroots development;
d) To use savings as a tool to organize and mobilize communities and help
demonstrate capacity of a community in managing its financial resources through
community savings
e) To help address the issue of security of land tenure, livelihood, health, education
and other welfare needs;
f) To help build self-reliance and confidence among communities and the urban poor
sector in general and uplift the dignity of the urban poor as key partners in
development;
g) To help strengthen coordination and networking of urban poor communities;
h) To mobilize resources and create a bridge finance, engage and leverage funds
with government, private institutions, and other stakeholders.
VI. General Rule on Savings Adoption: All HPFPI Regional Offices together with its
Regional Council members must initiate steps to ensure the development of the habit of
savings among its corresponding communities. All homeowners or community
association must mandatorily implement at least two types of savings (i.e. Group Savings
and Urban Poor Development Savings). All other types of savings can be integrated with
UPDF Savings.
VII. HPFPI Savings Process/Procedure: Only minimal documentary requirements are
required to the members who wish to open a savings account as compared to the
voluminous requirements and rigid procedures of formal banking institutions. An
orientation of the savings program is given to interested individuals, groups and
communities complemented by a hands-on-training on proper recording, bookkeeping and
accounting through the assistance of ARC or savings committee-in charge. The minimum
amount required to open an account is as low as fifty pesos. Further, savings and loan
transactions are flexible as members can just go directly to their group collectors anytime
of the day to avail of loan, deposit and withdraw their savings. However, an authorization
letter is required to those who wish to make transactions on behalf of the owner of the
savings passbook. This system is beneficial for members who are unable to leave their
workplace and remit or withdraw their savings. Women in particular benefited most since
they can continue with their household tasks with minimal interruption.
VIII. Savings Tools: Savings members have individual passbooks where their savings,
withdrawal and loan transactions are recorded. These transactions must coincide with the
records maintained by the group collectors in their booklets or mother passbooks.
IX. HPFPI Savings Structure: Initially, the organizational structure of HPFPI is rooted in the
savings and housing groups. These groups collect the savings and remit collections to the
ARC. For instance, Iloilo City started with only one ARC that serves savings members
from 7 villages or barangays. There are several savings groups in one barangay/village,
each with varying policies and purpose for savings. The savings groups usually have 7 to
10 members, and each has respective savings collector who remits savings to the ARC.
With the expansion of HPFPI savings membership to organized community and
 homeowners associations, another level was developed to bring the ARC closer to their
members. Communities and homeowners association that were either organized through
HPFPI initiatives or by other urban poor federations eventually formed their savings
groups. As it is no longer practical to manage the increasing number of saving groups on
a city-level scale, the ARC found the need to set-up satellite offices or another ARCs in
some communities where savings, withdrawals and loan transactions can be made. Some
of the administrative tasks including fund management, monitoring and financial reporting
were already delegated to the satellite offices. The ARCs and satellite offices are linked
together regionally through the regional offices (ROs), which consolidate reports and
assist member communities in areas like financial management, land acquisition
procedures and participation in local governance structures and public sector
engagement. The national office supports regional activities and co-ordinates tasks with
a national scope, such as surveying high-risk and disaster-affected communities, learning
activities, community exchanges, policy advocacy and guidance on monitoring. All these
levels, from savings groups to the ARCs and the regional offices, are managed by
community leaders.
Example:
Organization of ARC Components

X. Savings Monitoring Mechanism

XI. The Concept of Savings and Loan
XII. Kind of Savings and Loan Products
XIII. Savings and Loan Procedure
XIV. Terms and Conditions under HPFPI Savings and Loan Program
a) Loanable Amount: Shall be computed based on the 50 peso-limit per week. The
applicant therefor shall be required to have a monthly savings of 200 pesos. He or
she may exceed the aforementioned savings requirement BUT for purposes of
 applying for a loan, he or she can only borrow an amount corresponding to the
number of weeks or months he/she has been saving multiplied by 50 or 200 pesos
respectively. Thus if the applicant has a minimum of 200 pesos savings per month
and has been saving money for 7 months, the loanable amount shall be computed
as follows: P200.00 X 7= P1,400 or if the computation will be based on the weekly
savings, loanable amount shall be computed as follows: P50 X 28= P1,400.
b) Loan Term or Duration: Maximum of 6 months only. In case of shorter loan term,
borrowers shall be provided separate computation reflecting 5% interest rate
multiplied with the corresponding number of months. However, in case borrower
decided to pay his/her loan earlier than agreed loan term, he/she shall only pay
according to the actual number of months/duration he/she was able to
fully/completely pay his/her loan obligation.
c) Loan Interest Rate: 5% per month
d) Repayment Collection Schedule: shall commence or start one week after the
disbursement of loan amount (specifically, the repayment schedule shall coincide
with the savings collection date immediately succeeding loan disbursement date)
e) Repayment Frequency: Weekly
f) Repayment Collection/Remittance Flow:
Borrower Savings Group Collector
Borrower ARC-in-Charge (Lucy Tejadilla)
g) Compulsory Savings: P50.00 per week
h) Optional Savings: Amount equal to or in excess of the weekly principal amount
(Reason: for the purpose of increasing the loanable amount despite withdrawal of
the borrower of his or her savings; thus, if A (borrower) withdraw all his savings
worth P1,400 he has been savings for 7 months, he can still borrow P2,000 after
three months if aside from the compulsory savings of P50 per week, he has
optional savings which is equal to his principal amount in his weekly amortization)
i) Penalty: In case of a weekly payment default, 10% of the weekly principal amount
shall be charged as a penalty. In the hierarchy of the weekly amortization
components, penalty enjoys the utmost priority in payment charges. Thus,
following the order of priority stated herein, penalty shall first be deducted in the
remaining savings of the loan borrower or that of the co-borrower in case of a
default.
j) Order of Priority in Case of Excess or Deficient Weekly Repayment
1. Penalty;
2. Interest;
3. Principal; and
4. Savings
k) Order of Actions in Case of Failure to Pay Weekly Amortization
1. Amount due shall automatically be deducted from the borrowers savings;
2. Payment due shall be charged to and be deducted from the savings of the
co-borrower; and
3. Amount due shall be equally charged to and deducted from the savings of
the members of the group to which the loan borrower belongs.
l) Order of Actions in Case of Total Disability or Death of the Principal Borrower
1. Provisions under item 11 shall apply;
 2. All civil liabilities of the loan borrower shall be passed on to and assumed
by his or her legal heirs or successors-in-interest.
m) Distribution of Interest Collection: The interest rate of 5% shall be distributed
as follows:
1. 3% of the interest rate proceeds shall be distributed to RVHOA savers
2. Proposal: 1% of the 3% shall be allocated for collector or bookkeeper
incentive (for RVHOA deliberation/approval)
3. 2% of the interest rate proceeds shall be given to HPFPI
n) Disbursement of the Interest Collection: shall be distributed to RVHOA and
HPFPI annually in accordance with the provision in item 13. The total amount
collected within one calendar year shall be the basis of the percentage share and
distribution.
o) Requisites for the Disbursement of RVHOAs Share in the Interest Collection
1. Proposal duly approved by the savers general assembly (GA);
2. Proposal duly submitted to and approved by HPFPI; and
3. Fund disbursement or release to ARC-in-charge for and in behalf of
RVHOA savers.
p) Penalty Collection: shall automatically be disbursed to HPFPI on the schedule
coinciding the disbursement of interest shares.
XV.

GROUP SAVINGS
Bumuo ng grupo na may 10 members (HPFPI member HOA/CA)
May savings (lilinawin ni Ruby at Janeth)
20.00 para sa weekly group savings.
Monthly savings non-withdrawable but loanable. Ang pagbabayad ng loan ay individual
pa rin pero ang intention ay matulungan ang community.
40.00 welfare savings per month
50.00 para sa UPDF savings per month
10.00 city fund per month
5.00 UPCA per month
250.00 land savings per month (optional: sa may land issue)
Ang bawat grupo ay magtatalaga ng isang treasurer, president at secretary.
Bawat member ay magiging kabahagi ng committee: Grievance, Health, Housing,

Environment, Livelihood, Social & Cultural

Ang miyembro ay hindi puedeng ma involve sa ibang lending institutions.
Mga purpose ng pagpapautang: Land acquisition, site development, housing, health,
education, livelihood
Ang grupo ang mag decide kung anong araw sila mag remit sa branch level.
Kapag aalis sa samahan, ibalik ang savings (compulsory at UPDF lang) pero may 10%
retention at bayaran ang utang
Mag submit ng monthly report ang bawat grupo sa branch.
Ang mga magkakapamilya ay hindi puede magsama sa isang grupo.

Savings Procedure
 Isubmit sa branch ang UPCA, city fund, land and housing at welfare fund.
Weekly ang savings ng bawat membro ng grupo, kasabay ng kanilang weekly meeting.
Ang pera ay nakalagay sa cash box, ang susi ay hawak ng secretary at ang cash box ay
hawak ng Treasurer.
Ang bawat treasurer ng grupo ang maging representative sa branch or city level.

Loan Policy
Loan term 6 months to 3 years repayment
Welfare fund loan 6 months to 1 year repayment
May contract ang bawat member na mag apply ng loan.
Ang mga members ay complusory mag bayad ng insurance
Dadaan sa orientation ang bawat applicants bago e release ang loan.
50% ng interest income will go to National office
Grupo ang mag insure na makabayad ang kanilang members
5months savings before maka avail ng loan.
1.5% interest rate per month for welfare fund loan, 14% interest per year for land, housing
and site development loan,processing fee 1% sa amount of loan and 1% penalty for
unpaid amount
1.5% percent counterpart na savings para maka avail ng loan.
Susuriin lang ng branch ang application at ang desisyon ay batay sa nakitang validation
na maging desisyon sa amount na puede ma hiram ng member. Walang loan na
disapproved.

Procedure of loan
Fill out application form to apply loan
May approval ng grupo ang loan application.
May hawak na passbook (savings and loan) ang kabuuang grupo.
Babaan ng branch ang grupo para e validate ang loan application.
After approval, ang borrower ay magbayad ng processing fee bago e release ang loan.
Maka gawa ng standard bracket ng loan.
Kung hindi kaya ng Regions na magpaloan sa communities, puedeng maka access ng
loan sa National.

Goals of community finance

Address the poverty issues.
Sustainability of Federation.
Reduce money lenders
Standard policy on savings and loan

Indicators of community
No. of branches per city/municipality
number of HOAs/CAs
number of groups
Number of members
Monthly financial report (loans disbursed, repayments, savings, types of loans)

Repayment Policy
 Weekly ang repayment ng loan
Principal (kailangang ipaliwanag)
Interest
Penalty-pag may kulang sa principal
Weekly savings (welfare-{health, education,etc/damayan funds}, UPDF, land, UPCA, city
fund)
Maximum of 1 week ang release ng loan after validation.
After 1 month ma release ang loan (grace period), mag umpisa na ang pagbabayad.
Kung hindi kayang bayaran sa takdang panahon, grupo ang mananagot sa pagbabayad

Repayment Procedure
Ang ARC o collector ang siyang nangongolekta at nag safe-keep ng mga savings.
Mag maintain ng updated ( everyday) records ang ARC/treasurer ng grupo

Resource Management Policy

Lahat ng funds galing sa mga partners ay dadaan sa National Office (Sino ang maglead
sa NO? President? National Coordinator?, Sino ang hahawak ng pondo? Dapat may
treasurer at bookkeeper ). Ito ay ilalaan sa mga Region na may pangangailangan ng
pondo.
Bawat contract ay signed by National president at i-authorize ang regional coordinators?
To implement the project.
May share ang regions at ang mga ito ay maglalaan sa kanyang mga city.
Ang pagkukunan ng HPFPI para sa kanyang operating expenses ay bahagi ng interest na
nakukuha sa savings at mga lending funds (para sa Admin 50%, Loan Loss 20%,
Sustainability 30%).
Existing Revolving Funds (per fund source) ilagay sa separate account National hiwalay
sa Fresh funds (bawat fund ay may guidelines kung paano ito gagamitin ng mga regions)
Policy sa revolving fund ay hindi malinaw. Dapat may guidelines sa revolving funds esp.
ACCA. Kailangan i-review ng isang committee (Tasking:?)
Ang operation ay kukunin sa interest income. Use of funds; to support for planning,
meetings, and other activities of the Regions and National.

Resource Management Procedure

Pagsasagawa ng yearly inventory ng mga equipments and donations (cash or kind)
(National consolidated reports and regional reports
Ang mga full time volunteers na nag apply ay dadaan sa Regional office for interview at
National office ang magpapasahod. (c/o Staff Group)

Resource Management Criteria

Bawat volunteer na naka assign sa Regions ay may clear tasks. (c/o Staff group)
Dapat may klarong job description ang mga full-time volunteers (c/o Staff group)
Note: Types of Savings (lilinawin ni Ruby at Janeth)
Agreement: Sri Lanka Savings model pilot test sa Muntinlupa City, NCR and Mindanao-
spell out bawat paglalaanan ng contributioni

2016 National Leaders Meeting

 Natukoy na walang standard savings implementation policy across the regions
Iminungkahi ang pag-implement ng Sri Lanka Approach sa savings kung saan ipinakilala
ang Group Savings at Welfare Fund na idadagdag sa UPDF, City Fund, UPCA Fund
Bubuo ng Technical Working Group Sri Lanka Approach Policy
5 concepts ng savings approved
Regional Council to monitor and manage welfare fund; the fund is to be sa Regional Office
ilalagak
All regions agreed to implement at least 2 types of savings -UPDF and Group Savings
Start of implementation- Deadline for conduct of Regional consultations on new Savings
policy before conduct of March 2017 election
New savings policy will take effect after the March 2017
HPFPI election of officers.

I. Savings Frequency: Weekly

Citywide Savings Structure

The financial accessibility of the savings and loan program is made certain through the following
mechanisms:
Affordable interest rates- Active savers can avail of loan up to a maximum of 1.2 of the total amount
saved at an affordable interest rate. For non-HPFPI member communities that have their own respective
ARCs, interests rates are determined by the local community association.

Flexible repayment terms- Savers can opt to repay their loans on daily, weekly or monthly bases.
Members who save regularly and have good track records in loan repayment are given priorities to reloan
after they have fully paid their outstanding loan balance.

To date, there are 626 savings groups spread in 23 settlements in Iloilo City. The total individual savers
figuring 5,587 have mobilized a total of Php25,425, 309.

Chapter II. Training on The Savings Program

Section 2. Qualifications of HPFP Savings Program Trainees HPFP trainees on the

Savings Program shall have the following qualifications:

a) SEC registered/ HLURB registered of CA/ HOA and LGU-accredited

b) HPFP Affiliate
Section 3. Training on the Savings Program HPFP shall provide qualified trainees
with exposure, exchanges, conceptual and hands-on training on its saving program
including MIS and fund management.

Chapter III. Savings Program

Section 4. ACCOUNTABILITY/ MONITORING The affiliates which have undergone
savings program training shall be required to:

a) Establish and manage their own saving program with their duly designated
financial officers (i.e tellers, disbursing officer, treasures and signatories) and their
regional financial officer;
b) setup and maintain a local Area Resource Center or similar structure
c) update its actual and inactive savers
d) conduct proper approved narrative financial recording systems
e) support its existing policy and contribute to the on-going financial modeling process
f) conduct proper Financial reporting and narrative reports (i.e savers profile)

Insertion: (Feb 4 2005 NCG meeting, Punta Villa, Iloilo)

Policy on Savings

Annex na lang ng per region ang policy ng savings dahil sa iba-ibang kultura ng bawat
region, baka hindi aplikabol sa ibang region.(pero may sinusunod tayo ng national policy
on savings)

The group, PO leader, collector, Arc incharge, Board of HOA and the Credit
Committee shall be accountable for recovering individual loan repayment and
borrowings. They are the ones responsible for the collection of loan repayment and
decide for loan restructuring.

Policy on Accountability

The Credit Committee, HOA Board Members, group, leader, ARC-in-charge shall be
accountable for misappropriations or individual borrowings. They shall conduct fund
recovery activities.

The HOA and the CA Board, the persons concerned who endorsed and signed the loan
application of the HOA shall be accountable for the UPDF loan recovery. They shall also
perform fund recovery activities.

The Regional Officers shall make an Implementing Rules and Regulations (IRR) of the
UPDF fund recovery schemes and are also responsible for the IRR approval and
implementation.

The Regional Officers shall formulate an IRR of standards for delinquent loaners and
devise fund recovery activities for loan repayment.

Kinship

Mula sa aplikasyon at buong proseso hindi pweding kasama ang isang member na may
4th degree of consanguinity sa deliberation at approval ng loan at pati na rin sa
pagmamanage ng mga programa ng federation.
 Sa loan approval, kung ang loaner ay may kamag-anak within 4th degree of
consanguinity sa member ng approval committee, ang kamag-anak ng loaner na
member ng approval committee ay hindi dapat kasama sa pag-aapprove ng loan.

ARC

Area Resource Center shall be the center of community activities (e.g. information,
collection, accounting, orientation and documentation). Only the HPFP HOA/ CA
affiliates and HOA/CA members can form the ARC.

The ARC shall be responsible for the satellite formation provided the latter has passed
the criteria for satellite formation.

The ARC shall be set-up by the community itself and managed by the trained community
members themselves pursuant to HPFP programs.

Satellites

The satellites shall be formed by the ARC to immediately address the needs and
community issues of the distant members.

Builds self-reliance within the community

Same functions as the ARC have.

Criteria for Satellites formation:

undergone hands on training (on financial management) conducted by the ARC

Community o organization na may savings at may HPFP Program at may kalayuan sa

ARC

Satellite ay may isang kolektor at mga savers

Chapter III. Urban Poor Development Fund (UPDF)

General Policy

Nature: Members contribution ito. Non-withdrawable

Magkano: P 50 kada buwan bawat member

Insertion: (PACSII-HPFP Meeting on April 22, 2005, Tandang Sora)
Gamit at Alokasyon
Kapag mayroong pinangangalaang pondo na pinagkatiwala sa HPFP na walang tikoy na
paggagamitan, lugar o alokasyon, ang HPFP National ang siyang magtutukoy ng
pagbabahaginan.

Patungkol sa Vulnerable Groups

Pinapahalagahan ng HPFP na ibsan ang sakit na dulot ng kalamidad sa maralitang
tagalungsod kayat bukas at handing sumuporta ang HPFP sa mga apektadong mga
pamilya sa abot ng makakaya nito.

OTHER POINTS FOR DISCUSSION: (25 June 2005, Mergrande, Davao City)

Provision on Loan Caps

Management / Process questions

Policy on Savings and Loan Program

1. Form group of 5 to 7 members. Select 1 collector/leader and 1 mother collector. Fix day
for collection.
2. Minimum Daily savings or total of weekly savings of 50.00 per week
3. After 1 month of savings the savings amount can be loaned and the savings will have a
counterpart of 100%. (Ex. 200.00 savings = to 400.00+ loan amount of 200 payable for
1 month.
4. The loaned amount counterpart of 2,000 and up will require a co-maker. Applicable only
if the savings is higher, and requires approval of HPFPI arc-in-charge.
5. Monthly meeting of savings members and collectors.
6. The loaned counterpart will bear interest of 5% per month and will be paid weekly
7. The application for loan will be with the knowledge of the member of the group, signed
by the collector/leader or assistant collector.
8. The repayment for the loan will be collected by a loan collector/leader or directly pay to
the savings office.
9. The collection of weekly savings will continue with the minimum of 50.00 per week plus
the repayment for the loan.
10. In case of non availment of loan, the member can withdraw their savings anytime and
required with a maintaining balance of 10.00.
11. The amount saved will not be limited, but no availment of the loan beyond 200.00 per
week contribution. Example 6 months of savings 6 months x 200= 1,200 add 1,200 loan
.
Example : 6 months of savings 2,000.00 The amount that can have 100% counterpart is
still 1,200 add 1,200 loan add 800.00= 3,200.00
 12. The savings contribution will be on a daily or weekly basis. We discouraged 1 time
savings per month. However if you wish to do 1 time savings, you can do
savings/withdraw but will not be allowed to take the loan with additional counterpart.
13. The loaned amount will be payable minimum of 1 month and maximum of 6 months.
14. Processing fee table:
15. Passbook fee. 20.00

i
Based on the 204 NCG Meeting