DTI taps PLDT’s digital lending platform for MSME financing

MANILA, Philippines — The Department of Trade and Industry (DTI) is set to embark on a partnership with PLDT Inc. to tap into the latter’s digital lending platform Lendr to make its financing program more accessible to micro, small and medium enterprises.

“P3 (Pondo sa Pagbabago at Pag-asenso) will make use of the Lendr platform. This will be a big help. At present, we’re making use of the microfinance institutions for the P3 but of course online is a different thing,” Trade Secretary Ramon Lopez said.

 Lopez said the partnership would provide better efficiencies and seamless experience for the borrowers.

He said the DTI and Lendr are looking to seal the partnership before the end of the year.

 Lendr is a product of FINTQ, the financial technology arm of PLDT and Smart’s Voyager Innovations.

 Lendr allows its users to look and apply for various loan products using only their mobile devices. Through this digital mobile lending platform, users can choose a loan product, fill up an application form, submit their requirements and get notified regarding the approval of their loan application all within their mobile device.

With the partnership with DTI, borrowers availing of the government’s P3 program can apply through their mobile device and once approved, they can go to the nearest microfinance institution branch to get the cash.

 P3 is a financing program intended to give MSMEs better access to credit at lower interest rates.

The fund will also give priority to the country’s 30 poorest provinces.

Under the P3 program, a micro enterprise can borrow from P5,000 to P100,000 depending on its business need and repayment capacity with no collateral requirement.

Interest rate and service fees do not exceed 2.5 percent monthly, as compared to the 20 percent monthly rate under the 5-6 loan system.

 For next year, the government will earmark another P1 billion for the P3 program.