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Wednesday, February 8, 2023
HomeBusinessTransport coops want same loan benefits with Agri sector

Transport coops want same loan benefits with Agri sector

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.
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