Aside from being a champion weightlifter, Hidilyn Diaz is also a micro-entrepreneur or small entrepreneur. In an interview, he explained why lending to Overseas Filipinos (OFs) with businesses is a big help.
“It’s okay to take out a loan because it gives you the motivation to do well every month. When you know you are paying something every month, you will be able to grow the business, ”said Hidilyn.
Inevitably there are some OFs and even their beneficiaries who believe the debtor is bad. So even the savings or emergency fund that they keep can be used to run the business. But according to some financial experts, the emergency fund should not be moved. It is wiser to take out a loan, especially if it is a “good loan”.
Good loan vs. bad loan
As a micro-entrepreneur, Hidilyn became interested in increasing her knowledge of entrepreneurship. In his study, he better understood the difference between a good loan and a bad loan.
With a good loan, the money borrowed can help increase income and wealth. An example of this is the loan to invest in properties that increase in value such as a house or land.
A bad loan is a loan for things that depreciate or decrease in value. Examples of this are cars and gadgets.
According to Karen L. Cua, senior vice president and MSME group head of BDO Network Bank, the loan for business is an example of a good loan. Whether the loan is used to supplement the purchase of store stocks, equipment purchases, or for business expansion, it can help grow the business and profits.
Livelihood Loan for OFs and beneficiaries
BDO Network Bank (BDONB), the community bank of BDO, has an MSME loan or Livelihood Loan designed for OFs and their business relatives.
Micro-entrepreneurs who want to grow their business can borrow PHP30,000 to PHP1 million. Because of the affordable monthly installment options, borrowers will also not have difficulty in repaying.
Cua reminded that lending must be planned to maintain credit status. It is best to borrow only the amount needed for the business. It is also easier to get a loan again if it is repaid on time.
For OFs or relatives of OFs who need additional funding to grow their small business, just visit the nearest BDO Network Bank branch, BDO Network Bank PH official Facebook page or the BDO Network Bank website to apply for a Livelihood Loan.