22 February 2006
Opinion: Micro-financing
Smorgsboard
Liway C. Manantan-Yparraguirre
IMAGINE a bank that offers loan with no collaterals required other than the signature of four other people aside from that of the borrower?
There is already one in Davao and its operation is quite successful, said House Speaker Jose de Venecia Jr.
He announced last Saturday morning during the distribution of Philhealth cards to indigent recipients (held at the Dagupan City National High School gym) they will put up such a financing facility here in Dagupan.
JDV said work is underway for the establishment of a micro-financing bank in Dagupan. It will be the first such bank in the fourth district, and it will be owned by the people. If successful, it will be duplicated in other areas in Pangasinan and in the country.
The objective in putting up a micro finance bank is to make it easier for people who don't own a house or a lot secure loan. It is one wayof encouraging Filipinos to become entrepreneurs.
The sad fact really in our country is, no matter how eager a person is in starting a business if he doesn’t have enough money to begin with, it will remain in the drawing board. You cannot secure a loan at commercial or rural banks as collaterals will be needed.
Last year some local media practitioners were invited to the "product launching" of a commercial bank. They were offering loans to entrepreneurs. Their start up capital however should be P3 million and up for them to be able to avail of the program. Asked whether they have any package for entrepreneurs whose capital is below P1 million, sad to say they have none.
That explains perhaps why some borrow from bombays (and other 5-6 lenders) despite the very high interest because they have no choice.
So this project of JDV will be of great help to those who are raring and eager to become entrepreneurs but are prevented by lack of seed capital.
"One condition that I will impose is that there be no collateral from the borrowers. Ang kailangan lang ng borrower ay pirma and apat ng kaibigan o kakilala. Pag di siya nakabayad, ang hahabulin ay yong apat. There will be peer pressure, there is a commonality of interest at mas may disiplina. Yong mga tao na walang bahay at lupa makakautang sila," he explained.
JDV said this is the secret for breaking the prison walls of poverty. “This is the secret for creating the beginnings of a Filipino or an Asian middle class.
The Speaker said he and Pres. Arroyo are pushing for the establishment of micro finance institutions. In fact, he had done initial talks with the governor of the Central Bank of the Philippines on this.
"This is one way of encouraging the people to become entrepreneurs. We will create an army of Filipino entrepreneurs (the target is 1 million to 5 million entrepreneurs). An army of Filipino entrepreneurs who will move from poverty to join the ranks of middle class," he explained.
He cited what happened in China which with around 400 million people rising from poverty to join the ranks of the middle class.
“It is the largest economic transformation in human history done in the last 20 years. That's what i would also like to do in Pangasinan and in the country."
I personally would like to see the realization of this project because there are so many business-minded people who would like to start business or improve/expand their existing business but could not do so for lack of fund.
Addto that the increasing prices of commodities and the rate increase in electricity, LPG and water and consumption.
****
Congratulations to the newly promoted police officers in Pangasinan, from the rank of Chief Inspector (major) to Superintendent (colonel). They are Supts. Harries Fama (head of the Pangasinan Anti-Illegal Drugs Special Operations Task Group and provincial police information officer), Policarpio C. Cayabyab Jr. (Calasiao police chief), Mateo Casupang (Sta. Barbara police chief), Genaro Sapiera (San Fabian police chief), and Roger Danoli of the provincial police intelligence division.
Liway C. Manantan-Yparraguirre
IMAGINE a bank that offers loan with no collaterals required other than the signature of four other people aside from that of the borrower?
There is already one in Davao and its operation is quite successful, said House Speaker Jose de Venecia Jr.
He announced last Saturday morning during the distribution of Philhealth cards to indigent recipients (held at the Dagupan City National High School gym) they will put up such a financing facility here in Dagupan.
JDV said work is underway for the establishment of a micro-financing bank in Dagupan. It will be the first such bank in the fourth district, and it will be owned by the people. If successful, it will be duplicated in other areas in Pangasinan and in the country.
The objective in putting up a micro finance bank is to make it easier for people who don't own a house or a lot secure loan. It is one wayof encouraging Filipinos to become entrepreneurs.
The sad fact really in our country is, no matter how eager a person is in starting a business if he doesn’t have enough money to begin with, it will remain in the drawing board. You cannot secure a loan at commercial or rural banks as collaterals will be needed.
Last year some local media practitioners were invited to the "product launching" of a commercial bank. They were offering loans to entrepreneurs. Their start up capital however should be P3 million and up for them to be able to avail of the program. Asked whether they have any package for entrepreneurs whose capital is below P1 million, sad to say they have none.
That explains perhaps why some borrow from bombays (and other 5-6 lenders) despite the very high interest because they have no choice.
So this project of JDV will be of great help to those who are raring and eager to become entrepreneurs but are prevented by lack of seed capital.
"One condition that I will impose is that there be no collateral from the borrowers. Ang kailangan lang ng borrower ay pirma and apat ng kaibigan o kakilala. Pag di siya nakabayad, ang hahabulin ay yong apat. There will be peer pressure, there is a commonality of interest at mas may disiplina. Yong mga tao na walang bahay at lupa makakautang sila," he explained.
JDV said this is the secret for breaking the prison walls of poverty. “This is the secret for creating the beginnings of a Filipino or an Asian middle class.
The Speaker said he and Pres. Arroyo are pushing for the establishment of micro finance institutions. In fact, he had done initial talks with the governor of the Central Bank of the Philippines on this.
"This is one way of encouraging the people to become entrepreneurs. We will create an army of Filipino entrepreneurs (the target is 1 million to 5 million entrepreneurs). An army of Filipino entrepreneurs who will move from poverty to join the ranks of middle class," he explained.
He cited what happened in China which with around 400 million people rising from poverty to join the ranks of the middle class.
“It is the largest economic transformation in human history done in the last 20 years. That's what i would also like to do in Pangasinan and in the country."
I personally would like to see the realization of this project because there are so many business-minded people who would like to start business or improve/expand their existing business but could not do so for lack of fund.
Addto that the increasing prices of commodities and the rate increase in electricity, LPG and water and consumption.
****
Congratulations to the newly promoted police officers in Pangasinan, from the rank of Chief Inspector (major) to Superintendent (colonel). They are Supts. Harries Fama (head of the Pangasinan Anti-Illegal Drugs Special Operations Task Group and provincial police information officer), Policarpio C. Cayabyab Jr. (Calasiao police chief), Mateo Casupang (Sta. Barbara police chief), Genaro Sapiera (San Fabian police chief), and Roger Danoli of the provincial police intelligence division.
