CEBU CITY - Cebu-based small and medium enterprises (SMEs) are encouraged by government financial institutions (GFIs) to avail of various lending programs that require no collateral. Jane Tambanillo, executive vice president of the Philippine Export-Import Credit Agency (PhilEXIM), explained that under the wholesale lending program, the business support organizations (BSOs) could serve as conduit in providing loan assistance to their members. Under this arrangement, she explains that BSOs are responsible for administering and monitoring of loan availments and repayments of their members. These support groups are also the ones which evaluate their credit worthiness. "You can borrow from PhilEXIM through a credit line for your group. We lend up to P25 million and later on, if you require more on a case-to-case basis, you can increase it depending on your performance on your original R25 million," she added. Tambanillo clarified that such program no longer requires guarantee nor a Joint and Several Signatures (JSS) agreement or surety-ship, however, a deed of undertaking from the officers of the associations is needed. Tambanillo added that both direct and indirect exporters are eligible to access such loan program, adding that PhilEXIM has seen the necessity to provide financial assistance in order to empower the local business sector. She is also encouraging export sectors to avail of the loan to help cushion them from the continued slowdown of the country's export industry. Apart from this lending program, Tambanillo said PhilEXIM is also offering the SME Unified Lending Opportunities for the National Growth (SULONG), which does not decline a loan only on the basis of inadequate collateral. "Collateral per se is not a determinant in approving or denying a loan," she stressed.
Development Bank of the Philippines (DBP) senior assistant vice president Dulce Rañoza said businesses can access low-cost borrowing despite the absence of acceptable collateral through the Bangko Sentral ng Pilipinas' Credit Surety Fund (CSF). Rañoza said local government units, financial institutions, cooperatives, the International Loan Guarantee Fund (IGLF) manage the surety fund that will be deposited entrust to a financial institution like the DBP.
"The borrowers who are members of the cooperatives can apply for loans from financing institutions or any bank provided the cooperative will endorse the borrower or the member to the oversight committee usually in these financial institutions. "In case of default that the cooperative member cannot pay the loan, the surety fund will cover the payment for the loan," she explained.
