It is not new to us how a ‘Bombay’ in a motorcycle regularly visits our place to collect payments from your mother or from your neighbors. It has been always the last resort for people in need of big amount of money in the easiest way.
Accessible as it is, many franchise the thought even if how exorbitant interest rates are. (However, bombays are already used with apologies if one can’t pay for this week.) For the record, most customers were primarily small entrepreneurs or micro- enterprises in necessity of capital or for some reasons, in need of ‘instant’ money.
The Department of Trade and Industry however warns the public from illegitimate transactions and of how such unauthorized financiers proliferates many communities.
In a press conference with Undersecretary Teodoro Pascua, the new scheme that will try to replace 5- 6 scheme will be available as early as the first quarter next year.
Instead of having connected with authentic micro- finance institutions (MFI), many prefer to get involved with 5-6 lending. For some, getting involved with formal loaning institutions will need documentary requirements.
As a reply to that, Pascua added that lesser interest rates will be offered by the government.
It is in this cause that they would allot P1 billion to carry out an alternative to the traditional lending system that we knew.
This will give an estimated 2% interest rate to Micro, Small and Medium Enterprises (MSME), compared to the 20% rate offered by 5-6.
In partnership with Go Negosyo, the program aims to test it to the market with P 2,000 per beneficiary.
Find the nearest MFI in your place by simply texting MICRO FIND [PROVINCE/ TOWN] and send to 2973, for globe subscribers only. (Ace Palaganas)