The Land Bank of the Philippines is encouraging cooperative member-entrepreneurs to avail of the P27 million Credit Surety Fund for micro, small and medium-sized enterprises without collateral.
LBP officer Gerry Kinilitan said the funds can be used to expand the business of an SME. An applicant for CSF loan has to be a cooperative member with initial deposit equivalent to 10 percent of his or desired loan amount, he added in the press release.
The application can be submitted to the LBP, Bangko Sentral ng Pilipinas or Development Bank of the Philippines. Banks that offer CSF loan also grant lower interest rates to beneficiaries, Kinilitan added.
He said Land Bank committed P5 million for the CSF program, and added that in Negros Oriental, more than P7 million has been put in as counterpart funds for the CSF program to boost the cooperative movement in the province.
Kinilitan said the participation of local government units is integral to the CSF program because they are mandated by law to help the development of cooperatives and MSMEs.
An initiative of the BSP, CSFs serve as trust funds used to guarantee loans to enhance the credit worthiness and borrowing capability of the MSME borrowers, the press release added.*
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