In recent years, various assistance and loan programs have been established to support drivers and transport cooperatives in the Philippines, helping them overcome financial challenges and improve their operations. These programs offer essential financial support for purchasing vehicles, upgrading fleets, and sustaining day-to-day operations. By providing access to affordable loans and grants, these initiatives empower drivers and cooperatives to enhance the quality of service they provide to commuters, ensuring safer and more efficient transportation for all.
These programs extend beyond the drivers and cooperatives themselves, benefiting the general public by improving public transportation systems. With financial support, transport groups can expand and modernize their services, leading to more reliable, accessible, and environmentally friendly travel options. This, in turn, helps ease traffic congestion, reduce pollution, and enhance the overall commuting experience for citizens, making these programs a necessity when it comes to the country’s sustainable development and economic growth.
List of Assistance and Loan Programs for Drivers, Transport Cooperatives
If you’re a driver or part of a transport cooperative looking for financial assistance programs in the Philippines, here are some options available to help you upgrade your public utility vehicles (PUVs) and/or support your transport operations.
- Financial Assistance for Public Utility Vehicle (PUV) Modernization: These programs aim to support the acquisition of modern, compliant public utility vehicles (PUVs) in line with government modernization efforts.
- Driver and Transport Cooperative Support Programs: These programs provide specific financial aid, vehicle financing, and livelihood support to drivers and transport cooperatives to improve their business or provide alternatives during the modernization process.
- Emergency Assistance and Calamity Support: These programs provide financial assistance for drivers affected by calamities or unforeseen emergencies.
- Transportation Fleet Management and Working Capital: These programs offer financial assistance for managing or expanding the operational capacity of transport cooperatives and corporations.
By categorizing the programs this way, it’s easier to understand their target beneficiaries and specific purposes in supporting the transport sector’s modernization and resilience.
1. DBP PASADA Financing Program (Program Assistance to Support Alternative Driving Approaches)
Provider: Development Bank of the Philippines (DBP)
Target Beneficiaries: Transport cooperatives and corporations participating in the Public Utility Vehicle Modernization Program (PUVMP).
The DBP PASADA Financing Program offers transport cooperatives and corporations access to financing designed to support the shift to modern, compliant public transport vehicles. It helps qualified groups acquire new vehicles or build needed facilities under the PUVMP. The program provides financial assistance with favorable loan terms and flexible repayment options.
Purpose: To assist drivers, transport cooperatives, and corporations in modernizing their fleet by providing accessible loan programs in line with the national government’s efforts to improve public transport in the Philippines.
Features and Benefits:
- Eligible Loan Purpose:
- Purchase of brand-new PUVs compliant with DOTr standards (buses, mini-buses, jeepneys, UV express units).
- Vehicles may use compliant combustion engines (Euro 4 or higher) or alternative technologies (electric, solar-powered).
- Acquisition and/or construction of support facilities such as terminals or garages.
- Loan Amount:
- Up to 95% of the vehicle cost.
- Up to 75% of the cost for support facilities.
- Equity Requirement:
- 5% equity for vehicle acquisition.
- 25% equity for support facility projects.
- Interest Rate:
- Fixed 6% per annum, inclusive of Gross Receipts Tax (GRT), for the full loan term.
- Loan Tenor / Repayment Period:
- Up to 7 years, with a maximum 6-month grace period on principal payments.
- Mode of Release:
- Funds for vehicle acquisition are paid directly to the vehicle supplier or manufacturer.
- Funds for support facilities are released to the borrower.
- Collateral/Security:
- Registered Chattel Mortgage (CM) on the financed vehicle.
- Comprehensive insurance coverage assigned in favor of DBP.
- Possible additional collateral such as real estate mortgage, joint and several signatures (JSS), post-dated checks, or assignment of deposits.
- Contact Information:
- For program inquiries, contact the Program Development and Management I Department at (02) 8818-9511 local 2379 or email pdm1@dbp.ph.
- For loan applications, reach out to the DBP lending units or the Corporate Banking Group.
2. SPEED PUV Loan Program
Provider: Land Bank of the Philippines (LANDBANK)
Target Beneficiaries: Public Transport Cooperatives or Corporations with approved routes under the Land Transportation Franchising and Regulatory Board (LTFRB) Omnibus Franchising Guidelines (OFG).
The SPEED PUV Loan Program offers financing to transport cooperatives and corporations for purchasing modern, environment-friendly PUVs that comply with Philippine National Standards (PNS). It was developed to support the government’s Public Utility Vehicle Modernization Program (PUVMP) and to make financing more accessible for start-up transport groups. This program also harmonizes the lending process with regulatory requirements set by the Department of Transportation (DOTr) and other transport agencies.
Purpose: The program aims to assist transport cooperatives and corporations in acquiring compliant PUVs, streamline loan processing aligned with transportation regulations, and ease capital requirements for new transport businesses.
Features and Benefits:
- Loan Purpose: Financing the purchase of brand-new, PNS-compliant Public Utility Vehicles.
- Loanable Amount: Up to 95% of the vehicle’s acquisition cost or based on the borrower’s repayment capacity, whichever is higher.
- Equity Requirement: At least 5% of the acquisition cost.
- Interest Rate: Fixed at 6.00% per annum.
- Loan Term: Up to seven (7) years, depending on cash flow.
- Waived Fees: No standard loan application and processing fees, including handling, commitment, and pre-payment fees.
- Mode of Release: A Letter of Guarantee issued to the dealer or supplier upon loan approval, with proceeds paid directly to the supplier’s LANDBANK account.
- Repayment Method: Monthly equal amortizations through an auto-debit system from a dedicated Debt Service Reserve Account (DSRA).
- Collection System: Automatic fare collections credited to the DSRA linked to the Automatic Fare Collection System (AFCS).
- Collateral Requirements:
- Registered Chattel Mortgage on the vehicle.
- Official Receipt (OR) and Certificate of Registration (CR) of the vehicle.
- Deed of Assignment of the PUV’s Comprehensive Insurance (Act of God/Nature coverage), through LBP Insurance Brokerage, Inc.
- Hold-out on deposits as needed.
- Garage Requirements: A suitable garage, owned or leased, capable of accommodating the PUVs. Lease agreements must be valid throughout the loan term.
- Insurance Requirement: Comprehensive insurance of financed vehicles duly endorsed to LANDBANK.
- Other Conditions:
- Changes to vehicle specifications must be communicated to LANDBANK and remain within the approved loan amount.
- Compliance with all LANDBANK credit and legal documentation requirements is mandatory.
- Contact Information:
- LANDBANK Customer Care Hotline: (+632) 8-405-7000
- Toll-Free (PLDT lines): 1-800-10-405-7000
- Email: customercare@mail.landbank.com
3. I-RESCUE BUS Lending Program
Provider: LANDBANK
Target Beneficiaries: Public Utility Bus (PUB) operators, transport cooperatives, and transport corporations
The I-RESCUE BUS Lending Program provides financial assistance to public transport operators, especially those affected by COVID-19 restrictions. It supports the government’s Public Transport Modernization Program by financing the purchase of modern buses. This program helps operators maintain viable business operations despite reduced vehicle carrying capacity due to health protocols.
Purpose: To offer financial support to public utility bus operators for the acquisition of modern buses that meet Department of Transportation (DOTr) standards, helping them adapt to the modernized and safer urban transport system.
Features and Benefits:
- Eligible Loan Purpose:
- Acquisition of modern public utility buses in compliance with DOTr standards
- Loan Features:
- Type of Credit Facility: Term Loan
- Loanable Amount: Up to 80% of the bus acquisition cost or based on repayment capacity, whichever is lower
- Borrower’s Equity: At least 20% of the acquisition cost
- Repayment Terms:
- Equal monthly interest payments during the grace period
- Equal monthly principal and interest payments after the grace period
- Loan Tenor: Up to 7 years, inclusive of a 2-year grace period on the principal
- Interest Rate: Fixed at 5% per annum for the first 3 years, subject to annual repricing based on credit rating but not lower than 5% p.a.
- Penalty for Loan Default: 24% per annum
- Other Fees: Standard LANDBANK fees and charges apply
- Mode of Release:
- Issuance of a Letter of Guarantee to the bus supplier, dealer, or manufacturer
- Loan proceeds are directly credited to the supplier’s deposit account opened with LANDBANK
- Loan Collection Method:
- Borrowers must open a LANDBANK Debt Service Reserve Account (DSRA)
- DSRA must maintain an average daily balance equivalent to two months’ worth of amortization
- Monthly amortization automatically debited from the DSRA
- Collateral Requirements:
- Registered Chattel Mortgage
- Registered Real Estate Mortgage (REM)
- Hold-out on deposit accounts
- Other Conditions:
- Comprehensive insurance of the vehicle must be coursed through LBP Insurance Brokerage Inc.
- Changes in bus specifications must be reported to LANDBANK, without exceeding approved costs.
4. LANDBANK TerRain and Naval (TRANSPORT) Financing Program
Provider: LANDBANK
Target Beneficiaries: Transport cooperatives and corporations
The LANDBANK TRANSPORT Financing Program provides transportation financing to help transport cooperatives and corporations upgrade and modernize their fleets and facilities. It offers loans for both land vehicles and marine vessels, aiming to improve safety, reliability, and efficiency in the country’s public transportation systems. The program also supports allied transport businesses and provides working capital to cooperatives, promoting effective fleet management and service expansion.
Purpose: This LANDBANK financing program is designed to fund the modernization of transport facilities and meet the working capital needs of cooperatives and transport corporations.
Features and Benefits:
- Transportation financing for fleet modernization: Provides loans to upgrade and modernize land vehicles and marine vessels.
- Working capital loans: Helps cooperatives and transport companies strengthen their operating capital to sustain daily operations.
- Allied business financing: Supports related transport services and enterprises, enabling operators to expand their business ventures.
- Public transport support: Funds acquisition of modern vehicles to improve service efficiency and commuter safety.
- Efficient fleet management: Assists cooperatives in organizing and maintaining their fleets through upgraded vehicles and equipment.
5. K.A.R. Program (Ka-Grab Asenso caR Loan Program)
Provider: GrabFinance
Target Beneficiaries: Grab Driver-Partners actively driving on the GrabCar platform
The K.A.R. Program by GrabFinance offers Grab Driver-Partners a chance to own a car through affordable installment schemes. It provides a convenient way for eligible drivers to purchase vehicles and continue their journey with GrabCar. Applications are processed through SMS or In-app notifications, with step-by-step guidance provided by GrabFinance.
Purpose: To support Grab Driver-Partners in acquiring their own vehicles through flexible financing, helping them sustain and grow their livelihoods within the GrabCar platform.
Features and Benefits:
- Affordable car installment schemes: Easier access to car ownership through manageable payment terms.
- Qualification requirements: Active driving for the past 6 months, no fraud issues, no pending loan balances, and good transport standing.
- Simple application process: Notifications via SMS or In-app message with instructions for the next steps.
- Daily repayment schedule: Deductions begin 7 days after car release, on weekdays only.
- Credit impact: Car loan history is reported to the Credit Information Corporation (CIC).
- Partner car dealers: Access to pre-selected used cars from trusted dealers.
- Handling of price differences: Borrowers may cover any excess if the chosen car exceeds the assigned loan limit.
- Insurance coverage: Comprehensive vehicle insurance and passenger insurance through PAMI and Grab’s In-Transit insurance benefit.
- Maintenance support: GPS tracking for mileage monitoring and access to partner maintenance shops.
- Repossession and redemption policy: 10-day grace period for vehicle redemption after repossession.
- Loan restructuring: Payment plans available for drivers facing temporary financial challenges.
- Release timeline: Vehicles released within 1–2 weeks after downpayment and documentation.
- Compliance with regulations: Requirement to process LTFRB TNVS Franchise (CPC) within 90 days.
- Other inclusions: Comprehensive insurance, GPS tracker subscription, and chattel mortgage included in the loan package.
6. DOLE Livelihood Assistance Program for PUV Modernization-Affected Drivers
Provider: Department of Labor and Employment (DOLE)
Target Beneficiaries: Jeepney drivers and conductors affected by the Public Utility Vehicle Modernization Program (PUVMP)
The DOLE Livelihood Assistance Program offers financial support to jeepney drivers and conductors who opt not to consolidate their units under the PUV Modernization Program. Since its launch in 2018, the program has helped thousands of beneficiaries through livelihood grants. Eligible drivers and conductors may receive up to ₱30,000 in capital assistance to start or sustain alternative livelihood projects.
Purpose: The program aims to provide financial aid and livelihood opportunities to drivers and conductors affected by the transition under the PUV Modernization Program.
Features and Benefits:
- Provides up to ₱30,000 in livelihood capital per qualified beneficiary
- Available to drivers and conductors who choose not to consolidate their units under PUVMP
- Supports the creation or enhancement of small businesses or livelihood projects
- Launched to complement the government’s modernization efforts
- Offers an alternative source of income for drivers impacted by the modernization process
7. Assistance to Individuals in Crisis Situation (AICS)
Provider: Department of Social Welfare and Development (DSWD)
Target Beneficiaries: Jeepney drivers and operators affected by the PUV modernization program
The Assistance to Individuals in Crisis Situation (AICS) provides one-time financial assistance to individuals deemed in crisis based on DSWD’s assessment. Jeepney drivers affected by the government’s PUV modernization efforts can apply for support to meet basic needs such as food, transportation, medical expenses, and financial aid. The program offers a lifeline for drivers facing displacement due to the December 31 consolidation deadline for PUV operators and corporations.
Purpose: To provide immediate financial and welfare support to jeepney drivers and operators whose livelihoods are at risk due to the PUV modernization program and consolidation requirements.
Features and Benefits:
- One-time financial assistance for individuals classified as in crisis
- Support for basic needs such as food, cash aid, medical, burial, education, and transportation expenses
- Available to PUV drivers and operators affected by modernization deadlines
- Assistance determined based on social worker assessment
- Helps displaced drivers meet urgent living and operational needs during the transition
8. Grab Calamity Assistance Program
Provider: Grab Philippines
Target Beneficiaries: Grab drivers affected by calamities such as typhoons, fires, earthquakes, or robberies
The Grab Calamity Assistance Program offers financial support to Grab drivers who experience damage or loss due to natural disasters or criminal incidents. Drivers who suffer major or minor damages to their vehicles, properties, or experience injuries can file for monetary assistance. The program evaluates claims case-by-case and provides reimbursement directly to the driver’s cash wallet.
Purpose: This program aims to assist Grab drivers in recovering from calamity-related damages by providing quick financial aid for vehicle repairs, property damages, or personal injuries.
Features and Benefits:
- Fire, Earthquake, and Robbery Assistance: Financial aid for drivers whose vehicles or properties are damaged due to fire, earthquake, or robbery.
- Typhoon Assistance: Monetary assistance for vehicle and property damages caused by typhoons; requires proof that the damage occurred during the specified assistance period.
- Reimbursement for Repairs: Approved claims for minor or major repairs are reimbursed up to ₱5,000 per vehicle, credited to the driver’s cash wallet within 48 hours.
- Hospital Assistance: Separate assistance application available for drivers or immediate family members injured during calamities.
- Case-by-Case Evaluation: Each claim is individually reviewed to determine eligibility for financial support.
- Easy Claim Process: Submission of a simple application form along with necessary documentation, including incident reports, photos, official repair receipts, and valid IDs.
- Flexible Support: Financial assistance can include reimbursement for repair costs or approved advance payments depending on the situation.
- Dedicated Support Team: Grab’s review team evaluates and updates applicants promptly after receiving complete requirements.
9. Grab Hospital Assistance for Drivers or Immediate Family Members
Provider: Grab Philippines
Target Beneficiaries: Active Grab drivers and their immediate family members (parents, spouse, or children)
The Grab Hospital Assistance program offers financial support to Grab drivers or their qualified immediate family members during hospitalization. Claims must be filed while the patient is still confined or within one month after discharge. Hospitalizations related to COVID-19 are not covered under this assistance package.
Purpose: The program aims to help active Grab drivers manage medical expenses by providing cash support during hospitalization events affecting them or their immediate family members.
Features and Benefits:
- Eligibility: Drivers must have completed at least one ride within the past 30 days.
- Qualified Family Members: Includes parents, spouse, or children (proof such as birth or marriage certificates required).
- Claim Period: Must apply while the patient is confined or within one month after hospital discharge.
- Claim Requirements:
- Completed application form
- Grab-registered mobile number and email
- Vehicle plate number
- Name and illness of the driver or family member
- Medical certificate (photocopy)
- Government-issued IDs (driver and family member)
- Proof of relationship (birth/marriage certificate)
- Payment Method: Funds will be credited via Grab Cash Wallet within 7-10 business days.
- Confidentiality Agreement: Drivers must agree to keep the assistance amount confidential to avoid penalties or account suspension.
- Support Location: Assistance also available at Marikina East Hub or via LTFRB Public Assistance channels.
10. Public Transport Assistance Program (PTAP) – Pantawid Pasada
Provider: Department of Energy (DOE)
Target Beneficiaries: Public utility vehicle (PUV) operators, taxi drivers, tricycle drivers, and full-time ride-hailing/delivery service drivers
The Public Transport Assistance Program (PTAP), also known as Pantawid Pasada, provides financial assistance to the transport sector by subsidizing part of their fuel expenses. It aims to support operators and drivers of PUVs, taxis, tricycles, and ride-hailing/delivery services during periods of high fuel prices. Led by the Department of Energy, the program coordinates with several government agencies for smooth implementation.
Purpose: PTAP aims to lessen the impact of rising fuel costs on the public transport sector, keeping transportation services accessible and affordable for commuters.
Features and Benefits:
- Fuel subsidies or vouchers: Partial subsidy for fuel costs to help drivers and operators manage expenses.
- Coverage of various transport sectors: Open to PUVs, taxis, tricycles, and ride-hailing/delivery service drivers.
- Smart card system: Disbursement through smart cards to maintain transparency and integrity of distribution.
- Coordination with multiple government agencies: Implemented in partnership with DOTC, DOF, DILG, DBM, and LGUs to cover a wide range of beneficiaries.
- Flexible beneficiary list: DOE may review and expand the list of eligible sectors sensitive to fuel price changes.
- Support for local government coordination: For tricycle drivers, implementation is done jointly with LGUs, subject to available counterpart funding.
- Established under Executive Order No. 32 (s. 2011): Legal foundation strengthens the program’s structure and operations.
- Initial funding of ₱450 million: Funded from the Special Account in the General Fund (SAGF) of the DOE, released by the DBM.
While this list might not be as exhaustive as we want it to be, the assistance and loan programs listed above are still enough to provide essential financial support to drivers and transport cooperatives and help them access resources for vehicle acquisition, repair, and business development. By taking advantage of these opportunities, they can enhance their operations, improve service delivery, and contribute to the growth of the transport sector in general.