The local Land Bank of the Philippines called on cooperative member-entrepreneurs to avail of the P27 million Credit Surety Fund offered to micro, small-, and medium-sized enterprises.
LBP officer Gerry Kinilitan encouraged qualified coop members in Negros Oriental to access the funds for any business expansion without collateral.
Kinilitan said applicant for CSF loan has to be a cooperative member with initial deposit equivalent to 10 percent of his desired loan amount.
The loan application will be submitted by the cooperative representative to any participating banks here such as the LBP, Bangko Sentral ng Pilipinas, and Development Bank of the Philippines for approval.
Banks that offer CSF loan grant lower interest rates to beneficiaries.
Land Bank helped secure the loans of cooperatives and MSMEs by committing P5 million for the CSF program.
For the provincial government of Negros Oriental, more than P7 million has been put in as counterpart funds for the Cooperative Surety Fund program to boost up the cooperative movement in the province.
Kinilitan said the participation of local government unit is integral to the CSF program because they are mandated by law to help the development of cooperatives and MSMEs.
The CSF program derives its funds from the pooled contributions of cooperatives and the counterpart contributions of the provincial government and donor institutions.
The CSF program is part of the government’s support for MSMEs, according to BSP statement.
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. (PIA 7)
