BSP hopes to increase no-collateral loans to small businesses

Bangko Sentral ng Pilipinas (Central Bank of the Philippines). Wikipedia photo

MANILA – The Bangko Sentral ng Pilipinas (BSP) is eager to increase loans under the Credit Surety Fund, a program that lets small businesses borrow without collateral to P1.5 billion by the end of the year.

According to Monetary Board member Alfredo C. Antonio, the loans distributed through various CSFs across the country already reached P1.3 billion as of September. This means that the agency already helped 10,442 micro, small, and medium enterprises (MSMEs).

“We hope to reach the P1.5-billion mark at the end of the year,” said Antonio during the launch of Marikina CSF.

Created by central bank in 2008, the CSF collects cash contributions from various cooperatives, local government institutions, and other partner organizations.

The funds will be dedicated and used to lend money to member MSMEs.

To date, 32 CSFs have been launches across the Philippines, with 15 in Luzon, seven in Visayas, and 10 in Mindanao.

Antonio shared that they have plans of launching more CSFs to help more provinces which include Agusan del Norte, Butuan, San Jose and Muñoz in Nueva Ecija, and Nueva Viscaya.

MSMEs may benefit from the low interest rates of CSFs and at the same time the program provides free training.