THE Department of Trade and Industry (DTI) has launched a new financing program offering loans of up to half a million pesos to young entrepreneurs, aiming to help them start or expand their businesses without requiring collateral.
Trade Secretary Ma. Cristina Roque on Wednesday said the Youth Enterprise Fund, administered by the DTI’s Small Business Corporation (SBCorp), is open to a wide range of business ventures, with no restrictions on industry or sector.
‘It’s really up to them because they are youths. Usually they have so many ideas that they want to explore, not only in the digital space. There are also products that they want to at least try,’ Roque told reporters on the sidelines of the DTI National Exporters Fair in Mandaluyong City.
Under the program, eligible borrowers aged 18 to 30 may access loans ranging from P30,000 to P500,000.
The loans carry an interest rate of 1 percent per month on a diminishing balance and are payable for up to three years. Borrowers may also choose a grace period of zero, three, six, nine or 12 months before beginning repayment.
‘One year, of course, no collateral, but one year no payment basically,’ Roque said, referring to the maximum grace period available under the program.
Applicants are also required to pay a processing fee equivalent to 3 percent of the approved loan amount.
To qualify, borrowers must submit a government-issued identification card, a mayor’s business permit, proof of a bank account and, where applicable, corporate documents.
Applicants must also submit a business plan outlining the proposed project’s implementation, although this requirement is waived for enterprises that have been operating for more than one year.
Applications may be filed through the SBCorp mobile application, which is available for download on Google Play and Huawei AppGallery.
Further, the trade chief said demand for SBCorp financing has remained strong, with most of its available funds already utilized. ‘I don’t have the exact amount, but SBCorp’s funds are really being consumed. Last year, we consumed almost everything,’ she said.
To sustain lending activities, the DTI is seeking an additional P5 billion for SBCorp.