Financial Resilience

Mai Zamora - Posted on September 24, 2010

Josephine, 56, describes the mechanics of Maghirupay’s Community Managed Savings and Credit Association (COMSCA). The association, established through the auspices of World Vision’s community development and sustainability initiatives is run by members of the community and has been instrumental in securing Josephine’s family’s financial stability. Read here to see how this credit association has changed her family’s financial situation.

Josephine, 56, describes the mechanics of Maghirupay’s Community Managed Savings and Credit Association (COMSCA). The association, established through the auspices of World Vision’s community development and sustainability initiatives but is run by members of the community. The model is based on best practices World Vision had piloted among impoverished communities in Africa. The local model has been instrumental in securing Josephine’s family’s financial stability. She’s done away with the headaches of worrying about finances whenever tough times arise. “World Vision teaches us to stand on our own,” says Josephine.

Josephine, a mother of seven children, is just one of the 162 members of 11 COMSCA groups across Maghirupay. Josephine’s group started their association a few months ago with just 15 members. They meet weekly to update each other on the status of their savings, and to buy shares at only 10 pesos (2 cents) each.

During these meetings, members can take a loan if they need to. “COMSCA members pool their resources through their shares contributed during their regular meetings. They use this pooled fund for credit activities at very low interest,” explains the Economic Development Facilitator, Kemberly Medianero, 22. Kemberly adds that COMSCA’s model differs from microfinance models as the capital is sourced from the community itself and all the interest goes back into the savings pool.

Microfinance institutions have been present in Maghirupay even before COMSCA. The community feels encouraged to participate more in the credit association however, because of their personal ownership of the initiative, which also keeps interest rates at very palatable levels. As owners of the association, members equally divide loan interest when each stipulated “cycle” ends.

Most members’ loans aim to support basic needs and education. “COMSCA helps us a lot, especially parents like me who have many children; we cannot all afford our children’s needs,” shares Josephine. “With COMSCA, we never worry so much as to where to get money to bridge tough times,” she adds.

Aside from regular loans, there’s a function for an emergency fund that can be released in times of need, which requires no payment. This fund is unlocked by consent by the membership, and is released following a quick review of the need at hand. Josephine is glad for that special fund because it helped her when her husband was in a vehicular accident, and had to be rushed to a neighboring town for treatment. “Thanks to my group mates, they agreed to give the social fund. It was really helpful for my husband’s treatment. COMSCA really saved us,” shares Josephine.

Thanks to the credit association, mothers like Josephine can turn to themselves for support if ever tough times or emergencies call. “Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime,” Josephine repeats.

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