DA vows to simplify loan requirements
The Department of Agriculture (DA) has vowed to simplify its loan requirements for a faster release of loan funds injected to Production Loan Easy Access (PLEA).
Agriculture Secretary Emmanuel Piñol said there has been a lot of complaints on the slow release of the loan funds under the PLEA.
For instance, the DA through the Agricultural Credit Policy Council (ACPC) released to the Cooperative Bank of Cotabato (CBC), one of the conduit banks of the easy access credit program of the DA, as much as P40 million in January this year.
Five months after the release of the funds, the CBC has only released P10 millions in loans.
“During the dialogue I had with the CBC officials, I learned that in spite of the intention of DA-ACPC to facilitate the lending, there are still some difficult requirements which the applicants have to accomplish. They said that the guidelines of the PLEA require the applicants to get a barangay clearance and an endorsement from the municipal agriculturists,” Piñol said.
“These requirements bring into play political interference in the program because the barangay chairman may refuse or delay the issuance of a barangay clearance. Most municipal agriculturists are also appointees of the mayors,” he added.
In view of these on-the-ground findings, Piñol said he will ask the ACPC Executive Council to review the guidelines and requirements to make easy access loans really accessible.