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DA partners with PayMaya for easy disbursement of financial aid

The Department of Agriculture rolls out the Kapital Access for Young Agripreneurs or (KAYA) Loan Program to provide financial assistance for economic undertakings.

DA file photo

It aims to entice the younger generation to be key players in accelerating agricultural and economic growth in their respective local community.

Under the management of the DA’s Agricultural Credit Policy Council (ACPC), KAYA Program offers up to P500,000 loan at zero percent interest payable in five years to young individuals 18-30 years old. Said loan should be used to finance working capital and/or fixed asset acquisition requirements of start-up or existing agri-based projects of young entrepreneurs and agri-fishery graduates of either formal or non-formal agri-fishery schools.

To apply for this loan, applicant must submit the filled-up application form, a simple business plan, one government-issued ID with picture and proof of registration under the Registry System for Basic Sector in Agriculture (RSBSA) or Farmers and Fisherfolk Enterprise Development Information System (FEDIS). DA-Bicol Agribusiness Marketing Assistance Division (AMAD) CHIEF, Adelina Losa explains that FEDIS is a database of registered accredited farmers and fisherfolk enterprises including the process of registration which is stipulated in Republic Act No. 11321 an act “Instituting the farmer and Fisherfolk Enterprise Development Program” or the Sagip Saka Act. She adds that information and forms on this can be accessed from their office.

The ACPC has partnered with lending conduits to manage the credit program, disburse the funds, monitor and collect loans from the borrowers. These include government financial institutions (GFIs), non-government financial institutions including cooperative banks, rural banks, NGOs, cooperatives and other lending institutions. 
 
According to ACPC-Bicol Focal Person Michael Jordan O. Roquid in the Bicol region the partner lending conduits are Banco Santiago de Libon, Rural Bank of Paracale, and Producers Bank Savings Corporation.

The DA-ACPC has also partnered with digital finance and service leader, PayMaya to provide innovative disbursement platform for this KAYA Program. 

PayMaya will allow the partners lending conduits (PLCs) to disburse loans to borrowers digitally through their PayMaya enabled prepaid payment cards. The loan disbursement solution for PLCs is 24/7 and has a real time crediting through the PayMaya PayOut web-based portal.

On the other hand, KAYA loan beneficiaries will enjoy various functionalities of the PayMaya Card that allows them to make on-line and in-store payments, pay bills, buy load, send money, and withdraw funds which will allow them unhampered transactions even in the face of pandemic related restrictions.

“With this digital platform, we will be able to reach out and convince more Filipino millenials to engage in agriculture, fishery and agribusiness ventures, and more importantly bankroll their respective projects”, said DA secretary William Dar during the virtual launching of the KAYA digital card on July 6, 2020.
Aside from the financial support to the applicant the ACPC shall provide capacity building support by engaging state universities and colleges, government agencies and non-government business development services providers to extend business advisory/technical assistance services such as mentoring, entrepreneurship training, financial literacy, product packaging etc. 

“We need young people who have vision,” says Sec. Dar. “The youth will have a huge contribution in advancing the farming and fishing sectors since they are great with technology”, he added. 

Applications forms can be accessed via this link: https://bit.ly/ACPCloans. Inquiries may be coursed through mjroquid@acpc.gov.ph or amad.bicol@gmail.com. (Emily B. Bordado, DA-RAFIS V)