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DTI Micro Business Loan

Businesses – big or small – cannot operate, let alone start, without sufficient capital. However, capital remains a challenge for micro-entrepreneurs as there will always be days when their small businesses are unprofitable. This is precisely why they are the target of loan sharks. These illicit lenders capitalize on their desperate need for funds to restore their faltering small businesses.

Since micro-entrepreneurs find it hard to access a loan from banks and private lenders due to collateral and other complex requirements, they often resort to 5-6 lending to secure financing as quickly as possible, even if it means paying a very high-interest rate. And this is what the DTI’s P3 Program is all about: discouraging microentrepreneurs from engaging in illicit loans when they have better alternatives available from the government.

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Written by: Aunt Piggyy

What is the DTI Pondo sa Pagbabago at Pag-asenso (P3)?

 

The Pondo sa Pagbabago at Pag-asenso (P3) Program of the Department of Trade and Industry (DTI) was first introduced to the public in 2017 to deter underprivileged micro-businesses from taking out loans from loan sharks such as the 5-6 lenders. It was the government’s strategy of supporting micro-businesses in gaining easier and faster access to low-cost alternative financing. The DTI has also collaborated with Small Business Corporation to distribute the P3 financing to micro-entrepreneurs.

 

The P3 Program’s intended beneficiaries include micro-entrepreneurs such as market vendors, sari-sari store owners, and stall owners, who are primarily cooperative members. It should be noted, on the other hand, that only those with existing businesses who will be proven their ability to pay for the loan will be eligible for the P3 Program. 

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How much can micro-businesses apply for?

 

Micro-businesses, which are typically targeted by 5-6 and other illicit lenders, are offered another alternative under the DTI P3 Program, allowing them to borrow from  ₱5,000 to  ₱200,000 with a fixed 2.5% monthly interest rate and with no collateral required. 

 

Borrowers are encouraged to use the loan proceeds for business development and/or purchasing additional supplies and equipment for the business. It is important to note, however, that the amount they may get will be determined by the size of their business and its capacity to pay. Further, only those micro-businesses with at least one (1) employee are entitled to a maximum of ₱200,000. 

 

What are the Eligibility and Loan Requirements for P3?

 

Applying for a loan from a 5-6 lender is, without a doubt, the fastest solution to get the extra funds that Filipinos need. These lenders often require only a valid ID – and the money you need is yours. But to compensate for this, they will charge a very high-interest rate – generally higher than the principal amount if totaled. 

 

This is exactly the reason why the P3 Program was introduced to the public so there is no need to borrow from these lenders since the said program can offer the same thing, with even higher loanable amounts except, of course, for the hefty interest rates. The DTI P3 Program has simple eligibility and documentary requirements that can be readily met by any micro-business owner. To apply, interested micro-businesses only need to prepare the following:

 

Eligibility Requirements 

  • A Filipino citizen in healthy physical condition for the chosen business 
  • Must have at least a year of business activity 
  • The asset size is not more than  ₱3 Million

 

Documentary Requirements 

  • Accomplished DTI P3 loan application form
  • Business registration / DTI Business Name Registration / Valid ID / Barangay Clearance 

 

To apply, borrowers must only need to visit the nearest Credit Delivery Partner (CDP), Negosyo Center, and DTI Regional or Provincial Offices for the application form and submission of the requirements. The list of micro-financing institutions (MFI) identified by Small Business Corporations (SBC) is available on the DTI website. 

 

They may also call the following numbers for further details: 

Hotline Numbers

P3 hotline: (02) 651-3333

Small Business Corp. hotline: (02) 7751-1888

 

Cellphone Numbers

Central Luzon: (Smart: 0928-768-4674 / Globe: 0956-688-9496)

North Luzon: (Smart: 0949-712-0802 / Globe: 0956-688-9518)

Visayas: (Smart: 0921-534-3584 / Globe: 0995-549-2889)

Mindanao: (Smart: 0949-712-0780 / Globe: 0956-674-0639)

Department of Trade and Industry: (02) 751-3330 / 0917-834-3330

 

Conclusion

 

Loans provide business owners with the capital they need in order to expand their business effectively. This is why being bankable or being able to take out loans is a necessary characteristic of business owners regardless of the size of their business. 

 

Government-funded loans, such as the DTI P3 Program provide an excellent opportunity for microentrepreneurs to fulfill their goals. The P3 Program delivers legal and reasonable loan offers to microentrepreneurs that they would never experience from loan sharks.

Aunt Piggyy

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