CITY OF SAN FERNANDO – The Department of Trade and Industry in Central Luzon is inviting microfinance institutions (MFI) including cooperatives as partner conduits for the government’s Pondo sa Pagbabago at Pagasenso (P3) program, a scheme that Trade officials believe would eventually “kill” loan sharks, popularly known as 5/6.
Target of the program is to help the small traders, mostly street and ambulant vendors and sari-sari stores, through a maximum interest of 2.5 percent per month.
“Microfinance institutions such as cooperatives and other lending agencies with good track records are invited to join as conduits of this program. So far, there are 200 MFIs that have availed of the program across Region 3,” said Rowena Miranda, head of the DTI-3 Director’s Office department.
For Central Luzon, about P167.5 million had been opened as credit line. A total of P120.2 million has been released to different MFIs with 3,218 borrowers as of June 30, 2018, Small Business Corporation (SBC) records showed. SBC is the business-arm of DTI.
President Rodrigo Duterte announced in his recent State of the Nation Address (SONA) that he had released P6 billion to help small businesses and to defeat the proliferation of 5/6.
Jewelle Fabian, P3 area coordinator, Central Luzon Unit, said Pampanga has only two partner-conduits including the Golden Group Gabay Puhunan Brotherhood Multipurpose Cooperative and SK Multipurpose Cooperative in City of San Fernando and Apalit, Pampanga respectively.
“We are inviting other MFIs in Pampanga to come forward and be our partner conduits with this government program so that we can help small businesses,” said Fabian, who admitted she is encountering difficulties with encouraging MFIs due to strenuous requirements.
Miranda said P3 was piloted in Aurora province, with a P18.5-million credit line to six MFIs. So far only P20.3 million had been released to 611 borrowers. Bataan has four MFIs with P28 million available funds and only P18 million released to 287 borrowers.
Melly Quiambao, 55, a fruit vendor of City of San Fernando, whose initial investment was borrowed from 5/6, suggested that government must avoid documentary requirements to attract more clients. “Sa Bombay kaliwaan, bigay agad ang perang kailangan mo, kaltas na unang bayad kaya tinatangkilik ng masa.”
“Eh kung papupuntahin pa kami sa MFIs saying ang isang araw na kikitain ko. Tapos magbabayad kaagad ng P200 membership at registration fees. Matagal pa bago makuha ang loan kasi magsi seminar ka muna,” Quiambao explained.
She added that if President Duterte is really sincere in eradicating loan sharks, the government must deploy lending personnel mounted on motorcycles to different communities in urban and rural areas. In this way “mahihinto na ang 5/6 na mga Bombay lang ang nakikinabang.”
In Bulacan, Miranda said a P45-million credit line opened for 1,282 borrowers but only P35 million so far had been released to three MFIs.
Nueva Ecija has an P8-million credit line but P8.9 million was released to three MFIs intended for 352 beneficiaries. Tarlac has P30 million credit line and P15 million disbursed by a micro-finance institution for 346 borrowers; Zambales, P6 million for 398 individuals who availed of cash loans.