DTI to roll out MSME lending facility this month

Micro, small and medium enterprises (MSMEs) will be able to borrow under the government's Pondo sa Pagbabago at Pag-asenso (P3) Program starting this month, the Department of Trade and Industry (DTI) said.

"The government's Pondo sa Pagbabago at Pag-asenso program pilots this month in Mindoro, Sarangani and Leyte, among the top 30 poorest provinces, to represent Luzon, Visayas and Mindanao," the DTI said in a statement.

P3 is a government program aimed at curbing the usurious 5-6 lending scheme. Under the 5-6 scheme, borrowers may take out P5,000 to P300,000 at an interest rate of 20 to 26 percent.

“MSMEs need capital – and they are the ones biting the so-called 5:6 – so they look for alternative financing," Trade Secretary Ramon M. Lopez said in November.

"The P3 is designed to bring down the interest rate at which micro-finance is made available to micro enterprises," the DTI said Thursday.

The government has warned 5-6 operators they could be arrested any time, even without a warrant of arrest.

Last month, President Rodrigo R. Duterte said he wanted to discuss with the Government of India about 5-6 lenders operating in the Philippines. — Jon Viktor Cabuenas/VDS, GMA News