Business Loans/Credit/Financing

Financial Grant for Visayas and Mindanao Enterprises

Private businesses in Visayas and Mindanao having difficulty accessing commercial financing have the reason to rejoice for they have now the opportunity to get a grant that can be used to expand their business or diversity into a new line of business. Thanks to the Enterprise Challenge Fund (ECF) worth P640 million offered by the Australian government. Any private enterprise could qualify to avail of the grant, except projects that involve alcohol, tobacco and gambling. Bidders also need to be able to prove that they are having difficulty obtaining commercial funding for the project. Government-owned and controlled corporations, local government units and non-governmental organizations are not qualified, but NGOs and LGUs may be partners in a consortium led by a business firm.

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Pensioners May Use eCard to Apply for Loans

Government Service Insurance System (GSIS) old-age and disability pensioners may now apply for a pension loan using their eCard Plus on the GSIS Wireless Automated Processing System (GW@PS) kiosks installed in all GSIS office and select government offices nationwide.

The pension loan may also be applied by old-age and disability pensioners over-the-counter in their servicing GSIS office.

Under the GSIS Pension Loan Program, pensioners may borrow up to six times the amount of their monthly pension, but not exceeding P100,000 at eight percent annual interest rate.

The monthly amortization on the loan can be paid in 12 months or 24 months through automatic deduction form the regular monthly pension. Pension loans may be renewed after full payment.

To apply of a pension loan, pensioners may access any GW@PS kiosk with the use of their eCard Plus. To use the GW@PS, the pensioner must place the eCard Plus on the card reader of the kiosk and select “pension loans” form the list of available loan programs under the loan menu. A tentative computations of the loan proceeds, together with the monthly amortization, will be displayed on the kiosk’s touch screen.

After agreeing to the loan computations, the pensioner must confirm the transactions by validating any of his pre-registered fingerprints. Qualified pensioners may also apply for the pension loan by accomplishing the required application form and filing it in their servicing GSIS office

Credit Surety Funds Benefits for Small Businesses

Micro, small and medium enterprises (MSMEs) can now hope to get a bank loan without the necessary presenting acceptable collateral. The very first provincial Credit Surety Fund was launched in Trece Martires City in Cavite. And this program will be replicated in other province like Aurora province and Bohol, and in Calabarzon and Mimaropa region.

Access to credit of small businesses such as market vendors, handicraft makers and backyard farmers, the true backbone of the economy that comprise 99% of enterprises in the country, is very limited due to lack of acceptable collateral that is usually required by banks. But with the Credit Surety Fund, banks will lend more comfortably to MSMEs.

The Credit Surety Fund aims to encourage more lendings to small businesses by facilitating bank’s collection from a fund in the event of borrower default. The CSF will ensure that in such eventuality the lending banks can draw from the surety fun within 14 calendar days after submission of needed documents.

Credit Surety Fund democratizes access to bank credit and helps level the playing field for micro, small and medium enterprises. I’m looking forward the CSF program succeeds and open a lot of windows for micro, small and medium enterprises.