COOPERATIVES can register as conduit business institutions to be part of Department of Trade and Industry’s (DTI) Pondosa Pagbabago at Pag-asenso (P3), a program initiated by the government to help Filipino micro entrepreneurs against the 5-6 loan scheme.
The P3 is a P1-billion project of the government intended for micro entrepreneurs that allows them to borrow P5,000 to P10,000 for their business. With the objective of helping small businesses who are having a difficult time with the high interest rates of the 5-6 loan schemes at five percent interest, the P3 program will only have a 2.5 percent interest annually.
At present, there are 7 accredited financial institutions that applicants can go to for applications. These include Cebuana Lhuiller Finance Corporation, Center for Agriculture and Rural Development Inc., Mindanao Alliance of Self-help Societies Inc., National Confederation of Cooperatives Inc., Radiowealth Finance Company Inc., Taytay sa Kauswagan Inc., and Tulay sa Pag-unlad Inc.
“If there are cooperatives that are very active and offer loans, they can approach DTI through the small business corporation. There they can apply to be conduit business institutions. Example, they have several members, they can apply at DTI so they can be given the fund which they will distribute to the members for loan,” DTI Secretary Ramon Lopez said.
The project will pilot at three priority areas in the country such as Occidental Mindoro, Tacloban, and Sarangani Province. But according to Lopez, since this is a nationwide program, this will soon be implemented in other areas of the country through the accredited financial institutions.
Published in the SunStar Davao newspaper on May 04, 2017.
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