Microfinance loans

Microfinance loans are small loans granted to the basic sectors, as defined in Republic Act No. 8425, otherwise known as the “Social Reform and Poverty Alleviation Act”, and other loans; as defined by the government as to their amount, scope, and coverage that are granted to the poor and low-income individuals for their microenterprises and small businesses so as to enable them to raise their income levels and improve their living standards. Microfinance loans are granted on the basis of the borrower's cash flow and are typically unsecured. (Sec. 3(g), R.A. No. 10693)