CEDA Converts Chema Chema Loans to Grants, Halts New Applications Following Presidential Directive

CEDA Converts Chema Chema Loans to Grants, Halts New Applications Following Presidential Directive. The Citizen Entrepreneurial Development Agency (CEDA) has officially announced major updates to the Chema Chema initiative in line with the latest Presidential Directive, significantly altering the programme’s structure and administration.

In a statement released by CEDA, the agency confirmed that all approved Chema Chema loans are now being converted into grants. This move aims to provide financial relief to beneficiaries and marks a key shift in the programme’s implementation.

Furthermore, CEDA stated that it will no longer accept new applications for the Chema Chema programme. Individuals who have not yet received offer letters will not have their applications processed, as the budget allocated to the scheme has been exhausted.

For clients who had already begun repaying their loans, CEDA will facilitate refunds at respective branches. However, the refunds will exclude payments made towards the programme’s insurance component. Clients who paid via Electronic Funds Transfer (EFT) or commercial bank deposits are advised to present proof of payment and submit a bank account confirmation letter to their nearest branch to receive their refunds.

Applicants who have received offer letters will be contacted when disbursement funds become available.

As for the compulsory insurance linked to the programme, CEDA clarified that asset insurance will continue for the full policy cycle with an option to renew after 12 months. The Credit Life Cover will be converted into a term life policy for the original loan period, which includes coverage for death, disability, and an embedded funeral benefit of P10,000.