Cebu CFI backstops PUVMP

The Cebu CFI Community Cooperative has offered to buy modern jeepneys for drivers, operators and cooperatives in a financing program it unveiled at DAILY TRIBUNE’s 7th Asian Innovation Forum in Bacoor, Cavite on Tuesday.

The bridge financing program was offered by Cebu CFI to those who would be affected by the government’s Public Utility Vehicle Modernization Program, whose list-up ended yesterday.

“This is our answer to you. We know it’s a big issue now because the government needs to modernize the PUJs, standardize them, replace them with air-conditioned ones,” Don Garcia, the head of the firm in Makati City, said.

“The problem now is that drivers and operators do not have enough funds and have to form a cooperative,” Garcia said. “We will first pay for the units that you will buy in accordance with or depending on what your approved application is with the bank.”

Garcia said loan applications with banks usually take time, with some taking almost a year to process. He said the loans they are offering would have an interest rate of only one percent per month.

He said borrowers would need to pay only the interest on the loan on a monthly basis for one year.

However, Garcia explained that if a driver’s or operator’s loan pushes through before reaching the one-year mark, the borrower would pay only for the months covered.

“For example, the loan was released early, in two months, three months time, that’s good. What we will collect is for a period of two months, three months only, or until you receive your loan,” Garcia said.

To avail of the loans, drivers and operators must be members of a transport cooperative registered with the Cooperative Development Authority.

Apart from the bridge financing program, Cebu CFI Community Cooperative also offers a commercial credit line, a CFI micro lending program, salary loans, health loans and housing loans.