Republic of the Philippines
The Department of Trade and Industry (DTI) will soon be launching the Pondo sa Pagbabago at Pag-Asenso (P3) program nationwide, which aims to lure small borrowers away from ‘5-6’ lenders.
The P1 billion P3 program 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 distribution of the P3 funds.
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.
CIC’s credit information system will be on beta testing phase for accessing by qualified lending institutions from May until December 2017. During this time, all Filipinos are highly encouraged to update their credit records with their respective lending institution.
Credit reports will also be available from CIC’s accredited credit bureaus or special accessing entities beginning 1st quarter of 2018, namely: CIBI Information, Inc. (CIBI), CRIF Philippines (CRIF), Compuscan Philippines (Compuscan), and TransUnion Information Solutions (Transunion).
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