FS On Lending Business

Name: Ma. Mikaela Andrea A.
Franco
Subject: MPA – Organization and Management
PROPOSED FEASIBILITY STUDY OF A

COOPERATIVE – MONEY LENDING BUSINESS
INTRODUCTION
It can be lucrative to lend money to people who need it. Running such a business
can provide you with a fair return on your capital or investment with effective
management of your funds and control of the risks involved in offering loans to
borrowers. Given the current economic crisis our country is experiencing, more
people are likely to desire to borrow money. There are several participants in the
credit market, including banks, financing businesses, and other financial institutions.
There are still some particular markets, nevertheless, that you can successfully
expand your lending fund to. Simply make sure that your loans and receivables are
realistically recoverable by being strategic and careful enough.
The latest new trend in global banking, microlending, which you may or may not be
familiar with, is altering how individuals borrow, lend, and give. Simply said,
microloans are modest loans given to those in need or who are working poor but
cannot obtain credit through standard channels. By enabling poor people in third-
world nations—particularly rural women—to borrow money for entrepreneurial,
agricultural, and educational endeavors, microlending initially became a channel for
investors. The concept has gained traction, and you may now support people nearby
as well as thousands of miles away in realizing their aspirations. While some forms
of microlending can result in a profit on your investment, some are only loans that
are repaid in cash, and some are genuine gifts. You can always feel comfortable
about where your money is going.
Most people who voluntarily leave their jobs do so because they genuinely want to
improve their lives. They are determined to take full use of the loans, which they
recognize as a significant opportunity. The majority of our kababayans were already
engaged in some sort of side business, such as street vending. They therefore
possess sound commercial judgment. Through the loans, they can diversify, use
their imagination, and purchase a lot of goods.
They will have to work hard for whatever they get from the project, and because of
the microlending program, they are required to pay back the money they have
borrowed. High repayment rates are ensured as a result.
One becomes stronger and more autonomous when they run a successful business

and repay a loan.
Page 1 of 3
STATEMENT OF THE PROBLEM
As the demand for money grows to meet the financial needs of various individuals in
the area, such as the need to fund studies, basic needs, and so on. Many of them
choose to obtain loans from underground lending organizations, which offer interest
rates as high as 20%, causing borrowers to spiral into debt. In other words, rather
than assisting these people in their financial difficulties, it burys them further in debt
in the long run.
In this regard, the major goal of a proposed feasibility study is to build a loan firm that
offers a reasonable interest rate in order to address the market's financial
weaknesses. This study tries to answer questions about numerous characteristics in
order to estimate its worth.
Marketing Aspect:
1) Who will gain from the proposed financing venture?
2) What strategy should the company use to introduce and compete with current
loan businesses?
Managerial Aspect:
1) How will the company be successfully handled and maintained?
Technical Aspect:
1) How will the business be implemented practically?
2) What are the general guidelines or implementing rules for establishing a firm
under RA 9474, generally known as the Lending Company Regulation Act of
2007?
Financial Aspect:
1) How can the company make a profit while underestimating its costs?
OBJECTIVE OF THE FEASIBILITY STUDY
1) To be able to determine the market efficacy of the proposed corporation by

catering to their financial needs.
2) To be able to develop the most efficient management techniques for
managing the company.
3) To learn more about the business's practical application.
4) To be able to develop effective ways for improving business profit while
reducing costs.
SIGNIFICANCE OF THE STUDY
The establishment of a firm is difficult for everyone. This study will be very helpful to
society in general and especially to individuals who are interested in investing their
money in the lending industry because many aspects will be taken into account. This
will act as a roadmap for turning the idea into reality and reducing or eliminating
illegal lending such as bombay lending, also known as "5-6," and short-term loans
with exorbitant interest rates.
Page 2 of 3
Additionally, this feasibility study can widen the researchers' perspectives on the
problems facing the business world and encourage them to inform themselves about
how loan businesses cope with and address those problems.
METHODOLOGY
The descriptive method of research will be used in the project study to assist the
researcher because this type of research method is concerned with the description
of data and characteristics about the population that provides an accurate portrayal
of the characteristics of a particular individual, situation, or group in a current trend of
the operation.
The primary source of data for this study comes from disturbing and conducting
questionnaires and interviews with the potential target market, which includes
employees of LGUs, offices, schools, and pensioners in the neighborhood, rather
than individuals who work in the same line of business. These descriptive research
approaches will capture precise data and information that may not be available in
books or other study materials.
Other data sources for this study include books, journals, other related research
papers and studies, and the internet.
SCOPE AND DELIMITATION
The purpose of this research is to build a lending business in Legazpi City, Albay.
The study will look at the future market, as well as the employees of local
governments, offices, schools, and pensioners in the area. In addition, the
competitor/s must be able to identify the present business trend.
The research will also look at the principles and applying criteria for starting a
lending firm.
Page 3 of 3

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Name: Ma. Mikaela Andrea A.

PROPOSED FEASIBILITY STUDY OF A

One becomes stronger and more autonomous when they run a successful business

OBJECTIVE OF THE FEASIBILITY STUDY

1) To be able to determine the market efficacy of the proposed corporation by

SIGNIFICANCE OF THE STUDY

SCOPE AND DELIMITATION

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