Pagasa Philippines Finance Corporation follows the highly efficient and socially responsible ASA Model, a cost-efficient, standardized and sustainable model. The ASA Model lies at the heart of our business model. Our staffs are relentlessly implementing this model by adjusting local economic and cultural circumstances.
Almost all branches are identical, operated and managed in the same manner, enabling simple replication, expansion and supervision. Loan disbursements, repayments, record-keeping, etc. are all standardized. Our head office and agile field staffs facilitate efficient and decentralized decision-making. We actively seek to prevent overleveraging of clients by capping loan sizes and not by granting new loans before current loans are fully paid.
Our lending approach is based on individual lending via client groups. Group members are only responsible for non-financial obligations, such as the screening or selecting of potential new clients. In addition, the social cohesion within the groups means that members help foster financial discipline by encouraging each other to repay loans on time.
Before a loan is disbursed, the development officer and the branch manager carry out a credit evaluation process. The loan application must then be approved by the branch manager.
We offer three types of loans:
- Small general loans
- Small business loans
- Small entrepreneurial loans
Group meetings are held regularly, at a fixed time, day and place and all members are required to attend.