Cagayan de de Oro — The Government ‘s Transport modernization is doomed to fail if not offered the same loan benefits with that of the Agriculture Sector.
This warning comes from the National Consolidated Transport Union (NCTU) Mindanao Area Coordinator Joel Gabatan saying the government loan policy for the transport modernization must be reviewed thoroughly the soonest time possible.
Gabatan said agricultural cooperatives enjoy an almost interest-free scheme while the transport cooperatives under the so-called Public Utility Vehicle Modernization Program (PUVMP) find it hard to swallow the high interest rates being offered to transport vehicle loan borrowers.
Transport cooperatives are being imposed with a loan window of 5 percent Equity, 6 percent annual Interest with 7 years to pay while loans for agricultural cooperatives enjoy the best support from the government wIth NO equity and NO interest rate with only 3 percent service charge, a staggering disparity of loan services offered for the transport cooperatives.
“This disparity of loan services has created a disturbing divide among these sectors that would soon brew into an industry unrest if left unchecked by the Marcos administration at the onset of year 2023”, Gabatan said.
Loans for the transport cooperatives are treated like commercial loans plus the voluminous requirements that are hardly attainable by ordinary transport cooperatives, Gabatan said.
The government is urged to put up a Transport Credit Council similar to the AgrIcultural Credit Policy Council (ACPC) of the Department of Agriculture to synchronize all credit policies and programs in support of the transport modernization program.
Gabatan said the transport sector is equally important with that of the agricultural sector as forerunners of the Philippine economy.
He said transport cooperatives in Mindanao has been clamoring for the immediate review of the loan benefits being offered to the transport cooperatives by the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP).
We now urged our own lawmakers both from the Lower House and the Senate to file an urgent bill that would define a transparent and leveled-up bank loan policy beneficial to the transport sector, Gabatan said.
The rising cost for the purchase of modern vehicles and the staggering cost of fuel has added to the burden of the transport cooperatives of modernizing their vehicles.
Gabatan said the transport cooperative is no different from agricultural cooperative in the quest of livelihood for the family.
The NCTU in Mindanao has also received complaints of delays of vehicle loan application filed with LBP and DBP due to excessive bureaucratic requirements.
A Position Paper of NCTU is now being prepared to address these issues raised by the transport sector in Mindanao.
Transport coops want same loan benefits with Agri sector
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