MORE NEWS, KALINGA

P100 million OTOP fund set as loans for Cordillera borrowers
By DEXTER A. SEE

TABUK CITY, Kalinga – Funding assistance in the form of loans, amounting to R2 billion, is being offered for borrowers who want to engage in business enterprises under the One Town One Product (OTOP) program of government.

Noryn Bagano of the Department of Trade and Industry office here said the funding scheme is being offered by the head office of the Development Bank of the Philippines to local traders.

Of the total P2 billion, P100 million is earmarked for the Cordillera Region.
There is also no ceiling in the amount of loan per borrower, as it depends on the needs of applicants.

Applicants for the OTOP loans must have track record of business operations and should be technically, financially, economically and environmentally viable.

The loan applications are submitted to DTI provincial offices for evaluation. Later, these are endorsed to the DBP head office for funding, Bagano said.

Government launched the OTOP program in 2004 in support of small business enterprises engaged in tourism, food processing, weaving and production.

The borrowed funds may be used for the construction of infrastructure facilities, production, farming and marketing. The borrowers are charged 8-10 percent interest rate per annum.

Regarding the payment period, the borrowers are given one year for production capital, five years for permanent working capital, and 10 years for capital expenditures.

Possible borrowers are local government units, private entrepreneurs and overseas Filipino workers.