February 25, 2018, 7:24 am
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Additional funds for microlending eyed

The Department of Trade and Industry (DTI) is eyeing to expand within the year the P3 or the Pondo sa Pagbabago at Pag-asenso, a micro-lending program eyed to replace 5-6.

Zenaida Maglaya, DTI undersecretary, in a press briefing said P745 million in credit line is ready for distribution to micro finance institutions (MFI) which had been tapped as conduits for P3.

Maglaya said after the pilot run of P3 in three provinces – Mindoro Occidental, Leyte and Sarangani – the DTI will  roll out the program in 27 other depressed provinces within the year. 

She said  P4.7  million has been loaned to 135 clients in these three provinces, mostly to market vendors who rely on 5-6 to raise capital for their businesses.

“We will expand the program beyond the  depressed provinces,” Maglaya said.

The DTI has tapped  seven national MFIs and cooperatives as  conduits.  The seven collectively have 103 business units operating in the 30 depressed provinces.

Once expanded, Maglaya said, the program would be able to tap 213 more business units of the MFIs.

According to Maglaya, the DTI can seek additional funding from the government on top of the P1 billion initially approved by President Duterte.

P3 will also make it easy for borrowers since it will only require minimal documentation requirement; easy to access with only one day processing of application; low cost interest at 2.5 percent per month; and easy payment with collection on a weekly or daily basis, as necessary.

 Loan amounts to end-borrowers will range between P5,000 and P100,000, with no collateral requirement.
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