The law allows micro, small and medium enterprises (MSMEs) better access to financing as it allows for the expansion of personal property which can be used as loan collaterals in banks and other financial institutions.
Accordingly, a modern and centralized registry for personal assets shall be established in and administered by the Land Registration Authority.
Concomitantly, the procedure for the registration of the personal assets shall be simplified. Thus, the priority of security interests and liens on one personal property as collateral shall be dependent on the time of registration of a notice without regard to the order of creation of the security of interest.
Ultimately, the financial outlook of millions of Filipinos still mired in poverty is expected to improve as the enactment of this law is meant to lay the groundwork for more inclusive growth in the country.