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PFI-ACCORD offers a short-term working capital loan to eligible partner financial institutions (PFIs) which have established a satisfactory credit relationship with LANDBANK. The program veers away from the standard lending parameters and gives value to long-time partnerships viability, and creditworthiness of the Bank’s PFIs.

ELIGIBLE BORROWERS

• Cooperatives (Co-ops)
• Rural Banks, Cooperative Banks, and Thrift Banks (RBs/CBs/TBs)
• Microfinance Organizations (MFO)

ELIGIBILTY REQUIREMENTS

• PFIs must pass the following Risk Asset Acceptance Criteria (RAAC):

LOAN PURPOSE

Working capital to augment the PFIs credit funds for lending activities to SFFs, MSMEs and Agri-business Enterprise

LOANABLE AMOUNT

Up to 75% of average loan portfolio for the last three (3) years preceding the application

CREDIT FACILITY

Short Term Loan Line

INTEREST RATE

For Cooperatives, and RBs/CBs/TBs

• Prevailing LANDBANK Lending Rate at the time of availment

For MFOs

Shall be the same as that of the interest rate given to Prime co-ops

INTEREST SPREAD (FROM PFIS TO ITS BORROWERS)

All-in interest over LANDBANK rate should not be more than 15% per annum, inclusive of all charges

LOAN TENOR/REPAYMENT TERM

• Principal - payable upon maturity of the Promissory Notes (PNs) per batch
• Interest - payable monthly, quarterly, semi-annually in arrears or lump sum upon the maturity of the PNs

PENALTY FOR LOAN DEFAULT

For Cooperatives

• Three percent (3%) per annum to be charged on the 61st day after the due date of loan up to the date of settlement

For other PFIs

• Twenty four (24%) per annum to start on the day after the due date of loan up to the date of settlement

SECURITY/COLLATERALS

Any or combination of the following:

• If sub-PNs are already available at the time of loan release:
  • Assignment of Notes Receivables/Sub-borrower’s PNs with at least 100% cover, plus underlying collaterals, if any
  • Assignment of Proceeds of guarantee claims from AGFP, Credit Surety Fund and insurance claims from Philippine Crop Insurance Corporation (PCIC), if any
• If sub-PNs are not yet available at the time of loan release:
  • Post Dated Checks (PDCs)

 DOCUMENTARY REQUIREMENT

• Letter-request to avail from the STLL from PFIs signed by its authorized signatories, indicating among others the following:
  • Amount of loan to be availed
  • No. of prospective sub-borrowers
  • Name and term
  • Gestation of project to be financed
• Masterlist of sub-borrowers/sub-PNs to be assigned, if already available
• PDCs, if the Masterlist of Sub-borrower is not yet available
• Notarized undertaking to keep custody of the sub-borrowers PN and its underlying collaterals provided in favour of LANDBANK and that the same are open for inspection and audit by LANDBANK representative, anytime at the Bank’s discretion