PIA Press Release
Wednesday, January 04, 2012
Grassroot multi-purpose coop gets fresh loanby Larry Lopez
TABUK, Kalinga, Jan. 4(PIA)-- Members of Bulanao Multi-purpose Cooperative (BMPC) expect a prosperous year ahead with the P500,000 fresh loan assistance from the Rural Micro-entrepreneur Promotion Program (Rumepp).
Program coordinator Aurora Sanet said Rumepp released on December 28, 2011 the first tranche of the approved P1 million loan application of the coop as capital build-up to borrowers.
Rumepp is a flagship program of the Department of Trade and Industry (DTI) that develops small enterprises in the countryside.
Under this program, beneficiaries are provided entrepreneurial capability and capital aid through soft loans.
The lending conduit of Rumepp under the program is Small Business Corporation (SBC) which releases the loan assistance to client cooperatives.
SBC follows the risk-base lending policy for loans released to cooperatives as basis in charging interest rates, depending on the financial standing of borrowing cooperatives.
Interest rates range from 9 to 12 percent per year, while loans granted to beneficiaries are payable within one year.
Cooperatives charge a pass-on interest rate of 1.2 percent to borrowers, who pay their loans within one year.
Under the Rumepp scheme, Sanet said conduit cooperatives can accommodate non-members who are Rumepp clients provided they secure DTI recommendation to borrow.
Projects to be funded from loans are livelihood and income generating activities aimed to improve the living standards of borrowers.
The program is a mechanism of government to address poverty under President Benigno S. Aquino III development agenda.
The second P500,000 tranche of the loan, Sanet said is scheduled for release in the first quarter after the first tranche shall have been disposed to borrowers. (JDP/LL-PIA CAR,Kalinga)