FROM DA: No-Collateral Production Loan @6% Interest, Payable In 2 to 10 years

Sec. Manny Piñol says easy access to credit by farmers is much better than subsidies.

Farmers and fisherfolk can borrow production loan from the Department of Agriculture without collateral at 6 percent interest, payable in two to 10 years, depending on the project. The scheme is under the DA’s initiative called Production Loan Easy Access (PLEA) program.

Among the most recent beneficiaries are five cooperatives in Aklan which had availed themselves of a total of P39 million. The cooperatives that serve as credit conduits are Libacao Development Cooperative, P10 million; Lezo Multi-Purpose Cooperative (MPC), P10 million; Ibon MPC, P5 million; Sandona Development Cooperative, P10 million; and Madalag MPC, P4 million.

The amounts were turned over to the lending conduits by Alice Ilaga, Agriculture Credit Policy Council director for Innovative Financing Scheme, Sen. Cynthia Villar, head of the Senate Committee on Agriculture and Food, and DA-6 Regional Director Remelyn Recoter during the 62nd anniversary commemorative program of Aklan in Kalibo, April 25.

Each farmer or fisherfolk can borrow P5,000 to P50,000 to buy seeds, fertilizers, animal stocks and other production inputs.

Sec. Manny Piñol revealed that instead of subsidies, he believes it is much better to give the farmers access to affordable credit. Subsides, according to Piñol, are not sustainable due to the long procurement process in government transactions.

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2 thoughts on “FROM DA: No-Collateral Production Loan @6% Interest, Payable In 2 to 10 years

  1. Kailan kaya yun makarating dito sa Dinagat Islands? Saan at sino kausapin namin tungkol sa production loan na yan.

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