The P3 Program – Pondo sa Pagbabago at Pag-Asenso - of the Department of Trade and Industry (DTI) is expected to lure small borrowers from the 5-6 loan in the Philippines once it's launched nationwide.

The DTI loan worth P1 Billion aims to help underprivileged entrepreneurs and microenterprises by providing them with low-cost, quick-approval financing with minimal requirements. According to Ms. Zenaida C. Maglaya, DTI undersecretary for regional operations, potential borrowers need only fill out a half-page application form and present the necessary documents for the loan to be released within the day.

The P3 program will be implemented in partnership with Small Business Corporation (SBC) and will prioritize the country’s top 30 poorest provinces.
SBC’s national conduits are Radiowealth Finance Co., Taytay sa Kauswagan, Inc. and Mindanao Alliance of Self-Help Societies-Southern Philippines Educational Cooperative Center. A total of 27 microfinancing institutions (MFIs) have likewise received accreditation from SBC to assist in the distribution of the P3 funds.

Benefits of Credit Reports to the Borrowers

Microentrepreneurs’ loan requests could soon be facilitated through the use of credit reports accessible by lending institutions from the Credit Information Corporation (CIC). CIC is a government-owned and –controlled corporation whose mandate is to build a centralized, comprehensive, fair and reliable credit information system for all Filipinos.

The CIC’s credit information system contains the basic credit data of borrowers. Once fully operational, the CIC would be generating credit reports, which banks and other lending institutions could use in assessing an existing or a potential borrower’s creditworthiness, or his overall ability to pay his financial obligations on time.

Source: BusinessWorld