Posted on May 7, 2009 - by Gavin

PostalBank launches microfinance program…

Business World Online

ILOILO CITY — The Philippine Postal Savings Bank, (PPSB) Inc. here unveiled a microfinance project for families of transport sector workers.

Alfredo Tayo III, PostalBank senior manager, said Project DRIVE (Dagdag Regular Income Via Entrepreneurship) is open to spouses and immediate family members of drivers and conductors of public utility vehicles (PUVs).

Mr. Tayo said the drivers and conductors must belong to transport cooperatives or associations that are accredited or registered with the Office of the Transportation Cooperatives (OTC) and the Land Transportation and Franchising Board (LTFRB).

Leonardo Cruz, PostalBbank first vice president, said: “The project is the government’s response to the unpredictable increase in price of oil and gas which affects the transport sector. We will provide funds for livelihood projects that the beneficiaries will propose.”

Under the microfinance facility, a transport cooperative or association can avail of an interest-free and no-collateral capital seed fund amounting to P5,000 per beneficiary. A group of 30 beneficiaries can borrow maximum of P150,000 for a one-year term.

Mr. Tayo said the national government released P500 million from value-added tax collections to fund the project.

“The money was released to PPSB which is tasked to manage the fund,” Mr. Tayo added.

Transport cooperatives/associations with assistance from the OTC and LTFRB shall establish the criteria for the screening of eligible spouses and immediate family members of drivers and conductors.

After the first 30 beneficiaries are selected, the transport cooperative/association will identify livelihood projects to be undertaken by each beneficiary. They will also prepare the financing requirement and list of livelihood projects to be financed by the PPSB.

Mr. Tayo said the cooperative or association shall then prepare the loan documentation and application in accordance with the requirements set by PPSB. The loan application can be submitted to the nearest PPSB branch. — Francis Allan L. Angelo

Source: http://www.bworldonline.com/BW050709/content.php?id=024