DTI 11 expands financial assistance to MSMEs

WITH 840 micro, small, and medium enterprises (MSMEs) in Davao Region that were able to avail of loans in 2017, the Department of Trade and Industry (DTI) continues with their financial assistance programs for MSMEs.

In June 2017, it was reported that a total of P332.5 million was approved for eight microfinance institutions (MFI) in Mindanao for the launching of the Pondo sa Pagbabago at Pag-asenso (P3) program.

The P3 program was established to assist small businesses with their loans and to not anymore rely on 5-6 scheme which has a bigger interest rate. This is the newest loan

program scheme of the government as response to the financial help and need of the MSMEs.

During the DTI Davao Region Stakeholders’ Forum held last Tuesday, February 20 at Seda Hotel, Trade and Industry assistant regional director Edwin Banquerigo said that P3 loans are much viable for businesses that have faster turn-out.

“The lending rate of P3 is 2.5 percent per month, that is about 30 percent per annum. Because that is intended to address the 5-6 loan scheme. But the 30 percent per annum is only possible if you use it for the project that has a very fast turnover but never use that loan, even when you do not have collateral for a project that is long-gestating. You better take a regular loan because the lending rate now is lower,” said Banquerigo.

The financing facilitation of DTI facilitates the endorsement of loan application of MSMEs to government and non-government financial institutions. P3 is a funding program to provide microenterprises as alternative source of financing that is easy to access and pay back. They are released through local conduits such as cooperatives.