Daily Tribune‘We need to tell our small businesses to have patience in applying for loans from the government, as some Filipino lenders are used to ‘instant notification;’ also, some lenders, particularly those that are already aging, are technologically challenged. They easily get tired of inputting needed information when the transaction is online.’
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The president of Small Business Corporation, the lending arm of the Department of Trade and Industry, has advised entrepreneur lenders to understand the meticulous procedures of getting a loan from the government, as ushering financial help needs patience because it is not a joke to release funds for them.
It is due to the fact that despite the available programs and funds from the government, micro, small and medium enterprises still resort to lending money from loan sharks, particularly those involved in the "5-6" scheme.
"First, we need to tell our small businesses to have patience in applying for loans from the government, as some Filipino lenders are used to "instant notification".
Also, some of our lenders, particularly those that are already aging, are technologically challenged. They are easy to get tired of inputting information needed when the transaction is online," SBCorp. president Robert Bastillo said during the DAILY TRIBUNE's digital show Straight Talk.
Meticulous procedures
Bastillo explained that they need to onboard meticulous procedures and requirements because they are being supervised by the Bangko Sentral ng Pilipinas, just like banking institutions.
"The process is actually short if loans are only petty. We can process the account as fast as one week. We are communicating with lenders through email which is why they must diligently check their emails. Also, another problem is that lenders have no clear signals and internet," he said.
He said interventions from the government are indeed needed, particularly the provision of good Internet connection, in order for these lenders, especially in the far-flung provinces, to have access to the government's financial aid.
Despite this, Bastillo said SBCorp. is continuously making some interventions to draw in more lenders to their programs, particularly those marginalized.
"When we did rounds to the poorest municipalities, almost half of them had poor Internet connectivity, while 15 percent had no Internet connection at all. If they are having a hard time applying, the DTI has Negosyo Centers all over the country that can cater to their needs. DTI has Negosyo Centers in 1,300 municipalities," he said.
