Since the start of the year 2021, DISADECO cut back its interest rates on loans by a third from the existing 18 percent per annum to 12 percent diminishing. This is to continue to support the members affected by the coronavirus pandemic.
This is the second time that the cooperative cut back its interest on loans. The first time was from 24 percent per annum to 18 percent.
Not wanting to leave the members helpless, the cooperative employed different programs and activities such as partnering with different agencies to give low interest to farmers, condonation of one-month interest on loans, and giving of “ayuda” as part of its various aids to the community. Despite these, the cooperative realized these are only temporary solutions. Thus, the board of directors decided lower the interest rates on loans to help all members recover from the pandemic.
“Instead of giving ‘ayuda’ which is only a temporary relief, the board thought of a better, more permanent assistance to our members.” Ms. Marcy D. Foryasen, Bod chairperson said.
She added, “ DISADECO is one of few cooperatives operating in Region 2 that can give that level of interest on loans.”
How does the 12 percent interest on loan apply?
All loans availed of from January 1, 2021 would be rated by 12 percent annually. This means that only 1 percent of the loan is computed as interest per month instead of the previous 1.5 percent thereby reducing the interest rates by a third.
To enjoy maximum benefit, a member must make regular monthly repayments as the interest rate will be applied on the outstanding balance. Doing this will lead to lower interest rate.
For members in default to enjoy the new interest rates, they must re – structure their past due loans. All members in default are encouraged to pay or re-struct their loan to enjoy the new interest rate and to enjoy the Saranay benefit as well.
It is encouraged that all members continue to increase their savings and share capital while chipping away at their loans. Having these savings could guarantee that the members would not fall back into debt right after paying off their loans.
Although the economy is starting to slowly pick up again due to the availability of the vaccines, DISADECO would still maintain the new imposed interest rates as doubts on the effectivity of the vaccines arise and lockdowns are still imposed. With the improving financial operations, DISADECO may be further lowering its interest on loans to better help its members.