MANILA — The Duterte administration has allocated PHP1 billion for next year’s Pondo sa Pagbabago at Pag-asenso, or P3 microloan program for micro, small, and medium enterprises (MSMEs).
In a statement Thursday, DTI Undersecretary Zenaida Maglaya said President Rodrigo Duterte kept his promise to provide affordable microfinancing program for small-scale businesses for them to avoid borrowing money and capital from loan sharks.
The fund will come from the Office of the President, which will be coursed to DTI’s financing arm Small Business (SB) Corp.
The SB Corp. partners with non-bank microfinance institutions (MFIs), cooperatives, and associations to serve as conduits.
The P3 was launched January 2017 to give better financial access to MSMEs, particularly in the 30 poorest provinces in the country.
P3 can lend out PHP5,000 to PHP100,000 for an enterprise at an interest rate not exceeding 2.5 percent per month, which is lower than the 20 percent monthly interest rate in “5-6” lending schemes.
DTI’s microfinancing program also requires no collateral, with minimal documentation requirement and one-day processing application.
Borrowers can opt to pay on a daily or weekly basis.
As of November 24, some 16,210 MSMEs tapped the P3 Program.
DTI also partnered with 90 conduits nationwide and hopes to tap 45 MFIs as new conduits for the P3.
Around PHP485.81 million has been released by DTI to conduits and PHP307.8 million was directly released to the borrowers.
“We’re very grateful that this program has come into fruition, so we can help micro entrepreneurs who are at the bottom of the pyramid and create an entrepreneurial environment in the countryside that will also generate jobs for Filipinos,” said Maglaya.
“Through the P3, sectors can find relief from overly expensive borrowings as they pursue their livelihood activities,” she added. (PNA)