AVAILABILITY PERIOD

Until July 08, 2024

CREDIT FACILITY

• Short Term Loan Line (STLL)
• Term Loan (TL)

LOANABLE AMOUNT

Up to 90% of the project cost, net of the matching grant amount

INTEREST RATE

Principal

• Fixed at 5% per annum (p.a.) for 3 years, subject to repricing thereafter based on market rate but shall not be lower than 5% p.a.
• For Relending - Based on market rate per client sector but not more than 5%. Pass-on rate shall not be more than 10%, exclusive of reasonable fees and charges

TERM OF LOAN

• Production, based on crop cycle/gestation and payback period of the project
• For Fixed Asset Acquisition, based on project cash flow but not more than the economic useful life of fixed assets or remaining useful life for secondhand/refurbished machines
• For Permanent Working Capital, 3 years
• For Working Capital, via Promissory Notes (PNs) of up to 360 days

GRACE PERIOD

Grace period may be granted depending on the projected cash flow

COLLATERAL/CREDIT ENHANCERS

Any or a combination of the following:

• Collateral
  1. Real Estate Mortgage (REM)
  2. Chattel Mortgage
  3. Other collaterals acceptable to the Bank
• Credit Enhancers

1. Assignment of Receivables/Purchase Orders
2. Assignment of Sales Proceeds of Expected Produce
3. Assignment of “quedan receipts” issued by the cold storage firm or bonded warehouse
4. All other available credit enhancement instruments e.g., assignment of insurance claims, Production, Technical and Marketing Agreement (PTMA), cash capture mechanism thru Debt Service Reserve Account, guarantee from Credit Surety Fund, Agricultural Guarantee Fund Pool, among others, as applicable

DOCUMENTARY REQUIREMENTS

For all types of borrowers

• DTI endorsement
• Duly Filled Out Loan Application Form
• Project Proposal
• Business Plan (including Financial Projections, Source of Equity, List of Suppliers/Markets or Buyers and Contact Numbers)
• For Production Loan: Farm Plan and Budget
• For Construction/Repairs and Renovation: Cost Estimates/ Building Plan and Specification/Bill of Materials and Work Program/Building Permit
• For Acquisition of Machinery/Equipment: Price Quotation of Machinery/Equipment to be acquired
• For Existing Business

1. Income Tax Return for the past three (3) years
2. Audited Financial Statement for the past three (3) years
3. Latest Interim Financial Statements (FS)

• Collateral

1. REM Photocopy of the following:
   1. Title
   2. Tax Declaration
   3. Real Estate Tax Receipt and Clearance
   4. Location Map/Vicinity Map
   5. Building Plans/Architectural Design, Bill of Materials of land development & building improvements
2. Chattel Mortgage: Evidence/Affidavit of Ownership of Existing Machineries/Equipment (e.g. OR/CR of vehicle)

Additional requirements

• For Single Proprietorship

1.   Certificate of Registration with DTI

• For Cooperatives/Association/NGO Certified true copy of the following:

1. Certificate of Registration with Cooperative Development Authority (CDA)/SEC
2. CDA Certificate of Compliance
3. Articles of Cooperation/Incorporation and By-laws
4. List of members with corresponding address, farm location and paid-up share capital duly certified by its secretary and attested by the chairperson
5. Certified list of Board of Directors and Key Officers (Manager or President, Treasurer/Cashier and Bookkeeper) together with their Bio-data and Tax Identification Number
6. Board Resolution authorizing the cooperative/ association/corporation to borrow and designating at least 2 officers to negotiate and sign loan documents