Melvin E. Agnote

DOI: 10.26480//bedc.02.2025.49.53

ABSTRACT
This study investigates the financial literacy of selected members of CARD Bank Bay Laguna, and it focuses on the individuals who have been borrowing money from microfinance institutions for many years. Over time, there has been a remarkable increase in the number of borrowers, but there has been no significant sign of solid investments, casting doubt on their capacity to make good financial decisions. The main goal of this study is to examine the financial literacy of barrowers and check the effect of their interaction with the financial institution in their financial decisions. Twenty (20) participants were interviewed for this study, who have been clients of the microfinance institutions for at least 1 year. The result shows that many of the participants have learned valuable financial skills, such as saving and budgeting; however, despite trusting this financial institution, most members are still hesitant to invest and afraid to take the risk. Additionally, in terms of financial readiness, most member are aware of their future needs, but show no proper planning and funding, raising a concern for a financial literacy program that would enhance their ability to meet future obligations. MFIs may not bring a complete set of financial products, they were been able to provide the rural areas with opportunities for financial independence, allowing them to enhance their capacity to make sound financial decision and their financial well being.