The Development Bank of the Philippines (DBP) announced the roll-out of a financing program that offers interest-free loans of up to P500,000 for aspiring entrepreneurs in the agricultural sector, or “agri-preneurs.”
The DBP said it is teaming up with the Department of Agriculture (DA) and financial technology firm PayMaya Philippinces Inc. for the initiative.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said the state-owned financial intermediary would be the settlement bank to the lending conduits of the Agricultural Credit Policy Council and PayMaya in the implementation of the DA’s program offering capital access to agri-preneurs.
“DBP takes pride in this partnership which opens a whole new spectrum of opportunities in boosting agricultural productivity, food security and self-sufficiency, and in eradicating poverty and hunger, especially in the countryside,” Herbosa said.
The DA’s digitized financing program aims to support funding of startup or existing agri-based projects. The loan can be repaid in five years.
Last week, the DBP announced its accord with PayMaya, Bureau of Customs (BOC) and the Bureau of Treasury (BTr) to automate the collection and remittance of customs fee and charges.
Herbosa said the partnership would utilize the bank’s online banking system to ensure “seamless” transfer of the fees to the state coffers.
The agreement outlines that all collections and payments to DBP will be remitted to a BTr-BOC-PayMaya clearing account. The state-owned bank is also providing additional services to BTr, allowing it to monitor remittance via digital platforms.
In June, the DBP reported it has provided P11.12-billion worth of credit relief for around 400 borrowers through its payment moratorium. Herbosa said it is seen to benefit companies from different sectors, including construction, manufacturing, health, education and transport. Tyrone Jasper C. Piad