PostalBank Launches Special Loan Facility For The Transport Sector

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AS PART of  President Benigno “Noynoy” Aquino III’s commitment to help the transport  sector, the Philippine Postal Savings Bank (PostalBank) has launched today (February 03) a Special Loan Facility that can be availed of by industry  stakeholders to start a new business or expand an existing one.

Dubbed “Arangkada  Pasada”, the program is designed to help the transport sector earn additional  income through livelihood and other small-scale business ventures.

PostalBank Chief  Executive Officer (CEO) Cesar N. Sarino lead the formal launching of the  program at the PostalBank main office together with other top officials of the Bank and other industry stakeholders.

The “Arangkada  Pasada” program is also in line with Sarino’s vision to help uplift people’s  lives through reliable and outstanding service and pro-poor programs and projects.

“In as much as the  other banks cater mostly to huge accounts and big clients, we can fill the need  to serve the poor folks who would want to avail of banking services,” Sarino  said.

Under the scheme,  individuals and enterprises belonging to the transport sector may apply for the  program in any of PostalBank’s 25 branches nationwide.

Sarino added that  they can also apply through several conduits, including the local government  units (LGUs), organized transport cooperatives, organizations engaged in micro-finance activities and private business establishments in the transport  sector.

A transport  cooperative, association or group may avail of loans up to P5,000,000 for  re-lending to qualified members and/or for setting up or expansion of business activities benefiting its members.

A maximum loan of  P100,000 shall be given to legitimate members of the transport sector, with  viable business proposals or are already operating profitable business  endeavors, at the time of loan application. Loans should be backed up by  acceptable collaterals under the Bank’s lending guidelines.

The loan term shall  be a minimum of one year or maximum of five years, depending on the borrower’s  project requirements, cash flow, projected financial statement and security offered.