In the Philippines, microfinancing is an activity dominated by rural banks, non-government organizations (NGO) and people organizations (PO), with support from international donor organizations. It is a strategy used to combat poverty particularly in the rural areas. There are several approaches to engaging in microfinancing. You can get accreditation from the NGOs like Grameen Bank, CARE Philippines and government institutions like Small Business Guarantee and Finance Corporation (SBGCF). Partnering with these organizations will provide you logistics, knowledge and support in pursuing this endeavor. However, you can also decide to go at it alone - but with a lot more work, more risks and more resources. I believe the most efficient private entities who are engaged in micro-lending are the "Bombays". Although they operate illegally as usurers, they have actually mastered the technique of marketing and collecting, so much so that they have flourished and grew and their simple "5-6" operation have been passed through generations.
Another more secure example of Microlending is the pawnshop. If your money is sufficient to capitalize one, this is the safest way to go because you don't lend any money without collateral. This business require accreditation from the Central Bank as a financial institution, you may check the rules and regulations from there.
You may want to visit the following sites to get more information on microfinancing:
USAID's Microenterprise Innovation Project - this site contains research, publications and newsletters that will give you more insight on this industry http://www.mip.org
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