Social Issue

The Philippines has been on a sustained growth trajectory for close to a decade, but its levels of poverty and income inequality are higher than most of its Southeast Asian neighbors. Financial inclusion of low-income communities is lower than its neighbours, In 2019, only 29% of adults had a formal bank account, which could be one of the factors contributing to the persistent level of income inequality.

Our Response

This is the second loan Netri Foundation is providing One Puhunan as it addresses this critical funding gap by providing low income households with credit and services they need to run their business and households.

One Puhunan focuses on providing suitable and reliable financial products and services to low income individuals and small businesses which are not served by traditional banking institutions. The majority of its clients are women who run small commercial and trading  activities and require working capital to run these businesses.

Founded in 2014, they have grown to become a substantial credit institution, One Puhunan is part of CreditAccess Asia, a group which operates in South and Southeast Asia specialised in lending to artisans and micro-enterprises.

Expected Social Impact

With this investment of the Netri Foundation, it is estimated that One Puhunan will be able to provide over 16,000 microloans, with the aim of enhancing business opportunities, income generation, and wellbeing of their clients. A survey conducted of over 200 clients revealed that 94% confirmed that their income increased thanks to the loan, and 93% of respondents confirmed that repayment of the loan is not a problem for them. The survey also showed that One Puhunan stands out for its transparent loan pricing and has zero fees.