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The Department of Agriculture, Department of Agrarian Reform, Department of Environment and Natural Resources and Land Bank of the Philippines partnered to provide credit assistance to Agrarian Reform Beneficiaries (ARBs) through their respective organizations and support their on-farm and off-farm activities whether individual or communal projects.

Program Partners and their Basic Roles

• Department of Agriculture – Provides funds, technical and marketing support
• Department of Agrarian Reform (DAR) – Provides farm facilities and other support services
• Department of Environment and Natural Resources – Provides other support services
• Land Bank of the Philippines – Provides credit, manages fund and administers loans

Eligible Borrowers

• Agrarian Reform Beneficiaries Organizations (ARBOs)
• Farmers Organizations (FOs) other than ARBOs
• Peoples Organizations (POs)
• Other Conduits such as Co-ops, Rural Banks and NGOs

Eligible Sub-Borrowers

• ARBs or their household members who are actual cultivators of the land and have no outstanding loan with any financing institutions for the same project/loan being applied for

Eligible Criteria

1. For ARBOs, FOs other than ARBOs and POs only

• With legal personality (duly registered with SEC and CDA)
• With ARB members
• With core management team (i.e. manager, cashier, bookkeeper)
• Must be operational for the past six months
• With systems and procedures in place (particularly in lending)

2. For other conduits

• Regular lending criteria of LANDBANK

Eligible Projects

• Crop production (short and long gestating crops)
• Agri-enterprise
• Livelihood projects (agri-related)

Loan Tenor

• Short Term Loan- not more than 1 year
• Term Loans-more than 1 year but not to exceed 7 years inclusive of up to 3 years grace period

Pass-On Rate to Sub-Borrowers

• 15% per annum for Short-term Loans
• 16% per annum for Term Loans

Loanable Amount
For Crop Production

• Up to 80% of the total project cost

For Agri-enterprise and Livelihood Projects

• For those with existing crop production loan, up to 10% of the loan portfolio of the borrower
• For those without existing crop production loan under APCP, up to P1,000,000 per borrower

Interest Rate

• For short term loans = 8.5% per annum*
• For term loans = 9.5% per annum*

* inclusive of 2% interest rebate for prompt payment andadherence to prescribed pass-on rates