Iloilo City Offers Interest-Free Loans of Up to ₱100,000 for Nano Entrepreneurs
ILOILO CITY INTEREST-FREE LOAN 2026 – Do you run a small business in Iloilo City and rely on “5-6” lenders for extra capital? The city government now has a permanent financing program that lets qualified nano entrepreneurs borrow from ₱5,000 up to ₱100,000 without paying interest.
The Iloilo City Council (Sangguniang Panlungsod) approved on Wednesday, November 4, the ordinance creating the UNA Credit Access for Resilient Enterprises (CARE) Program, a locally managed microfinance facility, The Manila Times reported. The ordinance was authored by Councilor Rudolph Jeffrey Ganzon.
“The program seeks to ease the financial burden faced by many nano-entrepreneurs who often have no choice but to rely on informal lenders charging onerous rates,” Ganzon said, as quoted in the report.
The city set aside an initial ₱3 million as seed capital. The fund will be replenished through annual budget appropriations, national government grants, donor contributions and loan repayments, since the program works as a revolving fund.
Iloilo City CARE Program Loan Features
- Loan amount: ₱5,000 to ₱100,000
- Interest: none
- Service fee: one-time fee of 1.5% of the loan principal (unless the implementing rules provide otherwise)
- Repayment term: 6 to 18 months, with monthly installments based on the borrower’s business capacity
- Grace period: up to 60 days from loan release, subject to an approved cash-flow justification
- Limit: only one active loan at a time; the existing loan must be fully paid before applying again
- Late payment: penalty of up to 2% per month on overdue amounts beyond the grace period
Based on the 1.5% service fee, a borrower approved for the maximum ₱100,000 would pay a one-time fee of ₱1,500, while a ₱5,000 loan would carry a ₱75 fee.
Who Are Qualified?
The ordinance covers nano enterprises, which are businesses operating within Iloilo City with total assets of not more than ₱250,000, excluding the land where the business is located. They should have no more than three workers, including the owner, according to the Philippine News Agency report carried by PageOne.
Requirements for the Iloilo City Interest-Free Loan
- Valid city business permit or simplified registration certificate issued by the local government
- Proof of residency through a government-issued ID
- Completion of the financial literacy and entrepreneurship training conducted or accredited by the city government (required before the loan is released)
- Written declaration on how the money will be used, such as buying inventory, acquiring equipment or expanding the business
- At least one co-maker or guarantor who is an Iloilo City resident, at least 18 years old and financially capable
Applications will be screened by a Loan Evaluation Committee chaired by the city mayor. Priority will be given to women entrepreneurs, persons with disabilities, solo parents, returning overseas Filipino workers starting a business, informal sector workers moving to formal business, and agripreneurs.
Who Cannot Apply?
- City government plantilla employees
- Relatives within the fourth civil degree of consanguinity or affinity of personnel from offices represented in the Loan Evaluation Committee
- Those with outstanding or delinquent obligations under previous city government assistance programs
Unjustified defaults or misuse of the loan may lead to suspension from the program, legal recovery involving co-makers, and permanent disqualification from city government assistance.
More Than a Loan
Borrowers must also join business development activities, including entrepreneurship courses, financial literacy seminars, mentoring and coaching, and market-linkage events. “Access to capital alone is not enough; sustainable success requires continuous capacity-building and responsible business management,” Ganzon said.
The program will be supervised by the Local Economic Development and Investment Promotion Office or another office the mayor designates. It complements the city’s Nano Enterprise Ordinance and its Negosyo Development Academy, formerly the Uswag Negosyo Academy. Interested entrepreneurs may watch for announcements from the Iloilo City government on how and when to apply. The council vote was also reported by the Daily Guardian.
Are you planning to apply for this interest-free loan for your small business?
