Department of Agriculture AGRICULTURAL CREDIT POLICY COUNCIL in

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Department of Agriculture AGRICULTURAL CREDIT POLICY COUNCIL in coordination with Land Bank of the

Department of Agriculture AGRICULTURAL CREDIT POLICY COUNCIL in coordination with Land Bank of the Philippines Quedan Rural Credit & Guarantee Corp. Innovative Financing Schemes – Special Agricultural Financing Window (IFS-SAFW) Cebu City

SPECIAL AGRICULTURAL FINANCING WINDOW (SAFW) Lending Agents Eligibility Criteria A credit line/rediscounting facility designed

SPECIAL AGRICULTURAL FINANCING WINDOW (SAFW) Lending Agents Eligibility Criteria A credit line/rediscounting facility designed to encourage rural lending agents to lend to collateral-short small farmers and fisherfolk. Financing Facilities Loan Ceiling Eligible Sub-borrowers Eligible Projects Interest Rates Loan Maturity Collateral Requirements Procedures

Lending Agents F Banks F Cooperatives F Agri-Based Enterprises F Non-Government Organizations, People’s Organizations

Lending Agents F Banks F Cooperatives F Agri-Based Enterprises F Non-Government Organizations, People’s Organizations and other Institutions with juridical personality

Eligibility Criteria F Banks Risk Asset Ratio (RAR) of not less than 12%; Past

Eligibility Criteria F Banks Risk Asset Ratio (RAR) of not less than 12%; Past due rate of not more than 25%; Profitable operations for the last three years; Not experiencing liquidity problems; No serious irregularities and exceptions found per latest BSP and LBP examination; and, With no outstanding past due obligations with its creditors. more…

Eligibility Criteria… F Cooperatives Registered with the Cooperative Dev’t Authority; With lending experience equivalent

Eligibility Criteria… F Cooperatives Registered with the Cooperative Dev’t Authority; With lending experience equivalent to at least three years; Past due rate of not more than 25%; With written policies, systems and procedures on lending, accounting and bookkeeping and with installed books of accounts; With a Core Mgt. Team composed of at least a full-time manager, duly bonded treasurer and bookkeeper; With installed Capital Build-Up and Savings Mobilization Program; and, With no outstanding past due obligations with its creditors. more… previous

Eligibility Criteria… F Agricultural-Based Enterprises Profitable for the past three years; No ownership dispute

Eligibility Criteria… F Agricultural-Based Enterprises Profitable for the past three years; No ownership dispute for three years; No major labor dispute for the past three years; No adverse findings on the owners and management; Debt to equity ratio should not exceed 80: 20; and, At least 60% Filipino owned if corporation and 100% Filipino owned if single proprietorship. more… previous

Eligibility Criteria… F NGOs, POs & other Institutions Registered with the Securities and Exchange

Eligibility Criteria… F NGOs, POs & other Institutions Registered with the Securities and Exchange Commission or other registering government entity; With lending experience equivalent to at least three years; Past due rate of not more than 25%; With written policies, systems and procedures on lending, accounting and bookkeeping and with installed books of accounts; With a Core Mgt. Team composed of at least a full-time manager, duly bonded treasurer and bookkeeper; and, Authorized to borrow and lend under its Articles of Incorporation or Charter (in case of State Colleges or Universities) previous

Financing Facilities F Rediscounting Line for Banks Promissory notes issued by qualified sub-borrowers of

Financing Facilities F Rediscounting Line for Banks Promissory notes issued by qualified sub-borrowers of banks under this program can be rediscounted up to 100% of the face value F Credit Line or Rediscounting for all other types of Lending Agents Eligible cooperatives, ABEs, NGOs/POs and other institutions could avail of a rediscounting line or credit line from the program.

Loan Ceiling F Credit line/Loan Limit to Lending Agents Lending Agent 1. Banks 2.

Loan Ceiling F Credit line/Loan Limit to Lending Agents Lending Agent 1. Banks 2. Coops Facility Loan Limit Rediscounting Total rediscounts shall not exceed the Allowable Expansion Limit on Risk Assets Amount inclusive of existing obligations shall not exceed 6 times the net worthshould be equal to Amount requirement of borrowers but not to exceed twice its existing loanable funds (exclusive of borrowings) Amount not to exceed 75% of the 3. NGOs/POs Rediscounting and/ or Credit Line 4. ABEs Credit Line appraised value of the collateral 6 times its net worth, whichever is lower F Loan limit for Sub-Borrowers The loan amount shall depend on the type of the project to be undertaken by the individual sub-borrower but not to exceed P 150, 000. 00 per sub-borrower.

Sub-Borrowers Eligible sub-borrowers are small farmers and fisherfolk who are not existing borrowers of

Sub-Borrowers Eligible sub-borrowers are small farmers and fisherfolk who are not existing borrowers of any of the lending agents

Eligible Projects • agricultural crop production • Livestock • Poultry • fishery projects and

Eligible Projects • agricultural crop production • Livestock • Poultry • fishery projects and • payment for farm services (labor, animal, machines).

Interest Rates F LANDBANK to Lending Agents Banks (except Commercial and Universal Banks) 91

Interest Rates F LANDBANK to Lending Agents Banks (except Commercial and Universal Banks) 91 -day T-Bill Rate at the time of availment plus 1% Commercial & Universal Banks, Coops, ABEs & NGOs/POs 10% plus 2% service fee F Lending Agents to Sub-Borrowers The pass-on rate to sub-borrowers shall include a reasonable spread for the lending agent.

Loan Maturity & Mode of Payment • The loan maturity and mode of payment

Loan Maturity & Mode of Payment • The loan maturity and mode of payment for each type of lending agent shall be based on LBP’s existing policies and guidelines; and, • The lending agents’ existing policies and guidelines on loan maturity and mode of payment shall be applied to sub-borrowers’ loans.

Collateral Requirements F For ABEs - Real Estate Mortgage; Chattel Mortgage; and/or other acceptable

Collateral Requirements F For ABEs - Real Estate Mortgage; Chattel Mortgage; and/or other acceptable securities F For all other Lending Agents Loans to all other lending agents shall be secured by any or a combination of the following: For Rediscounting – Deed of Assignment of Promissory Notes of subborrowers together with the underlying securities which include, but not limited to crop insurance and Quedan. Cor guarantee coverage. For Credit Line – Assignment of crop insurance and/or Quedan. Cor guarantee coverage; Real Estate or Chattel Mortgage; or other acceptable securities.

Procedures F Lending to qualified agents The loan policies and guidelines in LBP’s existing

Procedures F Lending to qualified agents The loan policies and guidelines in LBP’s existing Codified Approving & Signing Authority as well as other relevant policies, guidelines and procedures of LBP shall be applied to the ff: ü accreditation of qualified lending agents; ü processing and approval of loan application; and, ü program fund disbursement and recovery. Additional procedures and requirement may be required by LBP. more…

Procedures… F On-lending to qualified sub-borrowers The existing lending policies, guidelines and procedures of

Procedures… F On-lending to qualified sub-borrowers The existing lending policies, guidelines and procedures of the lending agents shall be applied in its lending operations under the SAFW. F Quedan. Cor Guarantee Availment of special guarantee is subject to Quedan. Cor’s approved implementing guidelines for the IFS. previous

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