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Trade and Industry Secretary Ramon M. Lopez on Monday, (Feb. 22) urged the Bangko Sentral ng Pilipinas (BSP) to craft rules to encourage banks to lend more for auto loans stressing that banks have huge liquidity that they can use to help businesses recover.
Lopez said over a radio interview amid complaints from motor vehicle dealers that banks are not acting fast enough or have imposed stricter rules on auto loan applications or have been turning down auto loan financing applications.
Since banks are not DTI’s jurisdiction, Lopez said he could only call the BSP to issue a ruling to encourage banks to lend even as he cited that BSP has already several programs to lower interest rates on loans.
With that he also urged banks to help Filipinos by easing their loan requirements as he pointed to the fact that banks have plenty of liquidity at this time.
Those individuals who cannot get help from the banks for motor vehicles that they need for their businesses, Lopez offered other loan financing from the SB Corp. and other government financial institutions such as the Land Bank of the Philippines, Philippine Guarantee Corporation, and Development Bank of the Philippines. SB Corp., he reiterated, offers zero interest, no collateral and online loan applications.
In the meantime, Lopez also said that DTI is conducting a public hearing so they can come up with a Department Administration Order (DAO) that will force motorcycle dealers to allow cash payments as option for buyers.
It has come to the attention of the DTI that motorcycle dealers do not accept straight cash payments by buyers because they earn more through interest for the installment mode of payment. Normally, dealers would also tell buyers that their preferred motorcycle model is no longer available if they pay in cash, but the model is available if they pay on installment basis.
The DTI seeks to include penalty for dealers, who refused to accept cash payments, in the planned DAO. He also urged buyers to file complaint with the DTI against dealers who refused cash payment.
This article was originally published by Manila Bulletin.