This article is too important to miss for those who are planning on starting a business or thinking of expanding an existing one. But don’t forget, this is still in the works:
MANILA, Philippines — President Gloria Macapagal-Arroyo has ordered a study on the feasibility of cutting interest rates on government loans to micro, small and medium-scale enterprises (MSMEs), an official said Thursday.
Presidential Management Staff Cerge Remonde said that he had asked officials involved in lending to MSMEs to do the study after the President issued the directive.
“Only last week I was telling them to find ways and means to bring down further the interest rates that we can charge so that really this can be more attractive to people,” Remonde told reporters at a news briefing.
Remonde, who is the oversight official for MSME development, said President Arroyo issued the directive because of “her desire to have the program reach and help more people.”
Government financial institutions in a program called SME Unified Lending Opportunities for National Growth charge interest of 9.0 to 12.0 percent per annum, said Benel Lagua, president of the government’s Small Business Guarantee and Finance Corp.
Loans to micro-enterprises carry 10-12 percent, said Edgar Genoroso, president of the government’s People’s Credit and Finance Corp.
Micro-enterprises usually borrow P5,000 to P10,000 but can go as high as P50,000. Small and medium-scale enterprises (SMEs) borrow P200,000 to P5 million.
Lagua said his office was trying to negotiate with the Department of Finance to cut its cost of money. “Once we are able to do that, we will pass it on to our SME borrowers,” he said.
Genoroso said his office had to consider “our cost of funds.” Edited by INQUIRER.net
February 14th, 2008 at 5:42 pm
Mr. Chris,
I do have a business plan. How can i make communication for this proposal then? Im a OFW. I do have PDC.
Thanks.
Agnes
February 14th, 2008 at 5:00 pm
Hello, I am Reynaldo S. Orbon and I am presently employed here in Saudi Arabia. I will be leaving shortly this country and will be staying in the Phils. for good. I have already decided that I will go to business once I come home and the business that I will be venturing will be in food business (restaurant and in the food canning business). My end of service award will not be that big so I would be needing a loan to add up to my projected capital.
I would like to meet or address this mail to Mr. Cris, your responder No. 5 (letter dated 13 Feb). I am interested to correspond with him. I am also interested to know of any organization that are giving soft loans/clean loans to people who are just start-ups in their businesses. Thank you.
Reynaldo S. Orbon
February 13th, 2008 at 12:26 pm
If I have the money to lend to those who are planning to start business (up to 100thou) and can provide enough proof that they have enough preparation for what they want to do, how would I be able to reach out to these people?
If the government is giving them a 10 to 12 interest, I am willing to give them 9 to 11… Probably I’ll just require them to provide post-dated checks that I can cash out every month for their payment.
If anyone knows, please reply.
February 11th, 2008 at 4:57 pm
We are small bangus growers in Mindanao using fishpen. Our problem is to have a consistent local market and probably export market for our harvest. Can our government do something to help us find good market here and abroad? Otherwise, we can not stay long because of increasing cost of bangus feeds.
February 10th, 2008 at 10:02 am
i wonder if there is any instant soft-loan low-interest programs for the OFWs…any idea?
if there is, what are the requirements and how long is the processing time before we could avail of one?