DTI to roll out low-cost lending to MSMEs in 27 more provinces

The Department of Trade and Industry (DTI) is preparing to roll out the Pondo sa Pagbabago at Pag-asenso (P3) program in the remaining 27 of the 30 priority depressed provinces after it was successfully piloted in three provinces.

“We started with three provinces, Mindoro Occidental, Leyte, and Sarangani. Mga market vendors po ang unang target natin dahil ‘yon po ang kadalasang umuutang sa 5-6,” DTI Undersecretary for Regional Operations Zenaida Maglaya told reporters in a press conference in Makati City on Thursday.

P3 is the Duterte administration’s program on affordable micro-financing for micro, small and medium enterprises to curb the usurious 5-6 lending scheme, where borrowers pay an interest rate of 20 to 26 percent.

“Mula doon po sa ating inumpisahang tatlong probinsya, we are preparing for the roll-out to the 30 depressed provinces tatlo po doon ay na-target na … Isusunod natin 'yung 27 na natitira,” Maglaya said.

The program was initially launched in Leyte on January 25, in Occidental Mindoro on January 27 and Sarangani on January 30.

“Dito sa ating inumpisahang P3 … this is managed by Small Business Corp. (SB Corp.) – being an attached agency of DTI. Sila po ang namamahala ng pondo natin. The President gave P1 billion for this year,” Maglaya noted.

“The President gave us the instruction na tayo talaga ang maglabas ng ganitong programa para labanan po ang 5-6. To make sure that our micro-entrepreneurs have a cheaper source of financing,” she added.

Trade Secretary Ramon Lopez said during the same press conference that as of April 7, the SC Corp. has funded P4.72 million of loans to 135 micro-businesses in pilot areas.

“Sa ngayon po mayroong na tayong nakalaan na P745 million na credit line for our micro-financing institutions or conduits,” Maglaya said.

“We are talking to national micro-financing institutions and cooperatives na magiging conduits natin for the funds. Doon sa 30 depressed provinces, they have 103 business units in total,” she added.

Lopez said that there are seven national conduits for the program. He has yet to introduce the partner institutions.

The DTI aims to complete the roll out of the lending program to all 81 provinces of the Philippines by the end of this year.

“Pero ngayon,unang-una muna, sa 30 na depressed provinces. Susunod dun 'yung lahat na 81 provinces. Kakakuha lang ng pondo at ide-deploy na daw po ngayon o next week at magiging available na po sa depressed provinces,” he said.

Maglaya said interested borrowers are required to submit minimal documentation such as a valid ID. The loan application takes only one day to process.

The interest rate is 2.5 percent per month, and the payments are collected either daily or weekly.

“Dahil mura po ang pautang at 2.5 percent ang maximum po per month, compared to the maximum 20 percent sa 5-6 … dahil sa mababang interest rate, meron pong natitirang pera sa kanila … They can use it to expand their business,” Maglaya said.

Loan amounts range from P5,000 to P100,000, with no collateral. — VDS, GMA News