On April 21, the Department of Trade and Industry (DTI) and its attached institution, Small Business Corporation (SBCorp), launched its new E-Transport Loan program. With a total funding of P2 billion, its goal is to make the cost of shifting to electric vehicles “predictable, manageable, and significantly lower” for transport operators.
Applications for the loan are now open through the SBCorp Money app in a new E-Transport Loan section. Up to P1.5 million can be borrowed per vehicle, with a limit of P3 million per borrower.
Here’s everything you need to know about the program.
Who are eligible for the DTI-SBCorp E-Transport Loan?
Transportation network vehicle service (TNVS) drivers, fleet operators, and other small transport operators are eligible for the loan, which was designed to help them make the shift to electric vehicles in light of the ongoing oil crisis.
Regarding TNVS drivers interested in borrowing through this program, DTI-SBCorp clarifies that the loan is provided to the driver and not the company.
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What are the required documents for the E-Transport Loan?
Loan applicants must hold a valid Land Transport Franchising and Regulatory Board authority that covers the EV to be financed, such as a Certificate of Public Convenience, Provisional Authority, or other equivalent document. If applicable, they must also have an appropriate business registration with the relevant government agency.
For TNVS drivers, they are required to present a statement of account or certification from their affiliated company confirming their active status as a driver, as well as their trip history and volume.
What are the terms offered in the E-Transport Loan program?
Loans are payable up to five years, with grace period options from six to 12 months (including one-year no payment of principal amount and interest). The interest rate is 1% monthly on a diminishing balance basis, for an effective annual interest rate of 6.7%.
Up to P1.5 million can be borrowed per vehicle, with a limit of P3 million per borrower for the program.
EVs are already being deployed in the transport sector through taxi services, and this program looks set to further accelerate adoption in the industry. Will this new program lead to more electric vehicles in other industries? We’ll keep our eyes on the road and observe what happens.
