Department of Trade and Industry Secretary Ramon Lopez
MANILA — In January, the Department of Trade and Industry (DTI) through its program, “Pondo sa Pagbabago at Pag-asenso”(P3), began lending startup capitals to micro, small and medium enterpreneurs (MSMEs) who used to borrow money through the ‘5-6’ money lending scheme.
The government lends money with lower interest compared to that of the ‘5-6’ lending scheme.
Department of Trade and Industry Secretary Ramon Lopez said, “We will convert “5-6″ borrowers to p-3 borrowers for them to experience a lower interest cost from 20% per day, per week, to almost 20% per year.”
The government has allotted P1 billion for the P3 program. The DTI already has P344 million of said fund.
The agency has released P4.72 million for the loan application of 135 micro businesses in three pilot areas of the program which include Tacloban, Occidental Mindoro and Sarangani province.
The DTI targets to provide loans to 27 remote provinces to help residents start a business.
The Department also guarantees that the borrowers will have no difficulty in applying for a loan under the program.
DTI Regional Operations Group Undersecretary Zenaida Maglaya said, “We are trying match the requirements of ‘5-6.’ Meaning, we do not require any collateral. Like with ‘5-6’, borrowers can claim their loan within 24 hours, and the amount is from P5, 000 to P100, 000.”
For Amelita, who has been operating a variety store and a food store, the program is a great help for small business owners like herself.
“This is better because of the low interest cost. Like in my case, I’m already old and still sending children to school, so I still have to borrow money for this kind of business,” she said.
After launching the program in pilot areas, the DTI will visit various provinces to give the privilege to Filipinos who want to start up a business. — Aiko Miguel| UNTV News & Rescue.
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