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How to Apply for Business Loan in DTI

The Philippines has a sizable informal sector made up of micro-businesses. Small vendors with minimal resources operating in public markets and relying mostly on financial assistance to stay in business are among them. They often receive funding from 5-6 lenders as they provide the quickest loans but at high-interest rates – putting them further in debt rather than having their finances in order.

Because these lenders are becoming more of a nuisance than a benefit, and the government cannot prevent individuals from borrowing money from them, the DTI has launched a business loan to provide micro-entrepreneurs with better options for funding their businesses.

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Written by: Pig Daddy

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What is DTI

 

The Department of Trade and Industry (DTI) is one of the Philippine government bodies tasked with safeguarding consumers’ rights and interests. The DTI is also in charge of developing policies and programs to help the Philippine economy grow and thrive. In other words, DTI acts as the Philippine government’s regulatory arm for the country’s trade, industry, and investment operations. 

 

Furthermore, the DTI safeguards consumer education and information dissemination efforts, as well as overseeing the successful implementation and enforcement of trade and regulatory and fair trade legislation. 

 

One of DTI’s missions is to encourage the business environment to minimize the cost of doing business in order to stimulate trade and investment – and they began by introducing the P3 Program to the public.

 

DTI’s Pondo sa Pagbabago at Pag-Asenso (P3) Program

 

Recognizing that many Filipinos have fallen prey to loan sharks who have taken advantage of people’s desperate need for money, the Philippine government has developed a new initiative called P3 to provide financial assistance to micro-entrepreneurs. The Pondo sa Pagbabago at Pag-Asenso (P3) Program is a government effort that intends to assist small companies in the Philippines by offering loans of up to Php 200,000 at the lowest possible interest rate and with relatively minimal requirements that are simple to complete. 

 

Moreover, the P3 Program is meant to benefit micro-entrepreneurs such as market vendors, cooperative members, and many more. For the record, the program is only limited to those who have existing businesses and can verify their ability to pay.

 

DTI Business Loan Features

  • With the P3 Program, borrowers can loan from ₱5,000 to ₱200,000, depending on the borrowers’ ability to pay and the size of the business.
  • Enjoy a fixed 2.5% interest per month
  • Borrowed funds can be used for various business purposes such as purchasing additional business supplies and equipment and/or business development. 

 

Requirements 

 

Since the government’s purpose for introducing the P3 Program is to provide a better option for micro-entrepreneurs to support their businesses, they tend to encourage their beneficiaries to acquire a loan from them by requesting only a few simple requirements. Borrowers only need to complete the following documents to have the loan:

 

  • Duly accomplished loan application form
  • Business Registration/DTI Business Name Registration/Valid ID/Barangay Clearance

 

In addition to confirming that the business is registered and operating in line with the Philippine laws,  borrowers must also provide proof of at least one year of business activity and an asset size of no more than three ₱3 Million. 

 

 

Once all conditions have been met, borrowers may now visit the nearest Credit Delivery Partner (CDP) to submit the needed documents and fill out the loan application form. The CDP will then evaluate, endorse, and submit the list of loan applications through the Loan Origination System (LOS). The Small Business Corporation (SBP) will be in charge of the distribution of the loan proceeds to approved borrowers through the debit card.

 

Micro entrepreneurs who want to take advantage of the P3 Program may also visit the nearest Negosyo Center and DTI Regional or Provincial Offices. 

 

 

For More Information

Conclusion

 

The Pondo sa Pagbabago at Pag-Asenso (P3) Program is a good opportunity for small business owners and those looking to establish a business in the Philippines. Beneficiaries of this program should remember that the goal of the DTI P3 Program is to give them a more sustainable and less expensive alternative to high-interest loans like 5-6. All they have to do is complete the simple requirements and follow the simple steps on how to avail of the P3 Program. 

 

Pig Daddy

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