Friday, November 15, 2024

DTI-RISE UP Financing Program Vs. Loan Sharks Benefit MSMEs

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DTI-RISE UP Financing Program Vs. Loan Sharks Benefit MSMEs

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Micro, small and medium enterprises (MSMEs) in Negros Oriental are now benefitting from an affordable financing program of the Department of Trade and Industry (DTI) aimed at combating “loan sharks” charging high interest rates.

“The RISE UP (Resilient, Innovative, and Sustainable Enterprises Unleash your Power) program is a spin-off of the DTI’s Pondo sa Pagbabago at Pag-asenso program designed to provide existing small businesses a loan option that has lower interest rates compared to other lending institutions,” DTI-Negros Oriental information officer Jade Bato said Thursday.

Bato said the loans are made available through the DTI’s financing arm, the Small Business Corporation (SBCorp), where MSMEs can apply for a maximum loanable amount of PHP300,000 payable within three years depending on the size of the business, she said.

The loan is payable with a diminishing 1 percent monthly interest rate, she added.

As of March 24, a total of 20 loan applications have already been approved.

Of the number, 16 applications with a total loan amount of PHP2.2 million have already been released as of March 31.

The DTI here, through the SBCorp, continues to accept and process loan applications from MSMEs provided they are registered, have a business permit, and can show proof that their business is thriving.

Bato clarified the loan under the RISE UP program is not for start-up capital. (PNA)