Enhancing Credit Utilization Practices Through Financial Management Programs for Market Stakeholders in Gonzaga Cagayan

Abstract

Informal credit schemes are a key source of access to finance for market vendors in Gonzaga, Cagayan. Given the limitations on access to formal financial institutions due to collateral and credit history, the majority of microentrepreneurs use informal credit providers. Even though the schemes provide necessary working capital, they are risky with high interest and nonstandard repayment conditions. This policy brief identifies the importance of informal credit in finance generation and recommends ways to optimize its advantages and minimize risks.