The Department of Trade and Industry (DTI) has unveiled a major financial initiative aimed at accelerating the shift to electric vehicles (EVs) in the Philippines' public transportation sector. Through its financing arm, the Small Business Corp., the government will provide a P2-billion loan package specifically designed for licensed small transport operators and drivers.
"This program represents a significant step toward sustainable mobility," said a DTI spokesperson. "We're making it financially feasible for operators to transition from traditional combustion engines to cleaner electric alternatives."
The e-transport loan initiative, set to launch on April 21, 2026, offers individual loans of up to P1.5 million per vehicle. Qualified applicants can borrow as much as P3 million, effectively covering the cost of two EVs. The loans feature a five-year repayment term with a unique grace period—both principal and interest payments are waived for the entire first year.
This financing program arrives at a critical juncture for Philippine transportation. With fuel prices reaching unprecedented levels, EV adoption has gained momentum across the country. The initiative directly addresses the financial barriers that have previously hindered widespread electric vehicle adoption among small transport businesses.
Transport operators have welcomed the announcement, noting that the favorable loan terms could transform their fleets. "The first-year payment waiver gives us crucial breathing room to establish our EV operations," commented one taxi cooperative representative. "This makes the transition economically viable."
The program aligns with broader national efforts to reduce carbon emissions and modernize public transportation infrastructure. As the April launch date approaches, industry observers anticipate strong interest from operators seeking to future-proof their businesses while contributing to environmental sustainability.