State-owned Development Bank of the Philippines (DBP) has partnered with the Department of Agriculture (DA) and a leading financial technology firm to provide accessible financing to aspiring entrepreneurs in the agricultural sector, a top official said.
DBP President and Chief Executive Officer Emmanuel G. Herbosa said DBP would serve as a settlement bank to the lending conduits of the Agricultural Credit Policy Council and PayMaya Philippines, Inc. in the implementation of the Kapital Access for Young Agripreneurs (KAYA) loan program of the DA.
“DBP takes pride in this partnership which opens a whole new spectrum of opportunities in boosting agricultural productivity, food security and self-sufficiency, and in eradicating poverty and hunger, especially in the countryside,” Herbosa said.
DBP is the eighth largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development. As of end-March, DBP has disbursed more than P371-billion in loans to various borrowers.
KAYA is DA’s first digitized financing program to support the capital requirements of start-up or existing agri-based projects of young entrepreneurs. The program targets entrepreneurs aged between 18 to 30 years old and offers interest-free loans of up to P500,000, which can be repaid in five years.
Herbosa said this tie-up is in line with DBP’s efforts to promote financial inclusion by providing essential banking services especially to unbanked and underserved communities which are located mostly in rural areas of the country.
He said this partnership builds on the successful disbursement of funds to the farmer-members of NMI Agri-Coop and tobacco farmers in Isabela province, who have since transitioned to bonafide bank account holders.
“With this new initiative with DA and PayMaya, DBP hopes it can inspire a new breed of agripreneurs who are technologically-and-financially savvy, in order to ensure food security for future generations of Filipinos,” Herbosa said.