Micro entrepreneurs will be able to access P3 loans from more credit delivery partners (CDP) nationwide as the Small Business Corporation (SB Corp) partners with fintech company CRIF Corporation to manage the loan operating system for the accelerated delivery of the Pondo sa Pagbabago at Pag-asenso (P3) program.

SB Corp President and CEO Ma. Luna E. Cacanando said that a new P3 loaning scheme is under way, and it is intended to make the P3 funds more accessible to more micro enterprises in poor provinces and in other areas not yet sufficiently reached by formal lenders.

“The agreement with CRIF will make borrowing from P3 easier for the micro enterprise.    If in the previous P3 scheme, micro business owners get to borrow from cooperatives only if they are members, with the P3 scheme via fintech, borrowers can transact with any CDP.  The plan is to set up CDPs within an hour commute from the micro enterprise communities.  Moreover, the loan will be directly released to the debit card issued to the borrowers,” Cacanando explained.

Under the accelerated P3 loan scheme, CRIF will provide Loan Origination Service, Credit Information Service and Scoring Service.

Likewise, under this scheme, borrowers will have the choice to borrow from any CDP in their area and be assured of the maximum 2.5% per month interest rate as the Promissory Note will be between SB Corp and borrower, unlike before where some of the accredited financial institutions providing P3 loans impose additional fees.

Cacanando added that the new P3 program scheme will also prevent individuals and institutions from using the P3 program in activities other than entrepreneurship support.

Following President Rodrigo Duterte’s directive to replace the “5-6” money lending system, the P3 Program, a financing program with annual allocation of P1.0 billion from the national government, is intended to provide micro entrepreneurs an alternative source of financing that is easy to access at a reasonable interest rate, that is under a safe environment away from dubious practices of informal lenders, and that is sustainable as delinquent borrowers are effectively barred from borrowing the next loan cycle.

Cacanando said that through the P3 program, micro entrepreneurs can find relief from overly expensive borrowings and afford cost-efficient and affordable form of loan to help expand their businesses.  Under the P3 Program, a micro enterprise can borrow between P5,000 up to P200,000 depending on its business status and repayment capacity with no collateral requirement.  Interest rate and service fees, all in, do not exceed 2.5% monthly.

The accelerated P3 scheme via fintech is set to be launched in the fourth quarter of the year, with pilot testing support under way. 

Cacanando also encourages micro financing institutions to apply for accreditation with SBCorp as Credit Delivery Partners and help spur economic activity in the countryside.

“We are encouraging rural banks, credit cooperatives and private financing companies with lending license  to partner with us in  the nationwide delivery of P3 loans. Enabling our enterprising poor to help themselves will level the playing field and empower them to take advantage of the economic gains rallied by the entire government and by the President himself.”