DTI grants loan to organized groups in Kalinga

By Larry T. Lopez

Friday 13th of July 2012

TABUK CITY, Kalinga, July 13 (PIA) -– The Rural Micro-Entrepreneur Promotion Program (RuMEPP), a subsidiary program of the Department of Trade and Industry (DTI), released loan aids to two organized groups in the province for their capital build-up.

BIBAK Multi-purpose Cooperative (BIBAK MPC) and Barangay Bulanao Norte Multi-purpose Cooperative (BNMPC) got P1 million and P500,000, respectively.

The aid came from Small Business Corporation (SBC), a tie-up finance provider of the program that grants loans to boost the operating capital of credit institutions assisted by the promotion program.

Aurora Sanet, RuMEPP coordinator of Kalinga, explained that financial aids granted this time to BIBAK co-op and the Bulanao co-op are actually re-loans after these cooperatives had paid back previous loans with SBC.

Beneficiaries qualified for re-loans must show positive results from operation of business after meeting all the other requirements, Sanet said.

Under the loan scheme, credit cooperatives can lend to their member-borrowers.

In the case of the Bulanao co-op, collateralized loan is offered to member-borrowers on all amounts of loan, while the BIBAK co-op only requires collateral to loans amounting over P50,000. Payment period is from six months to one year.

RuMEPP which was launched in 2007, aims to develop micro-business in the country, which is seen as backbone of Philippine economy.
(JDP/LL-PIA CAR, Kalinga)