LGU Lending Program

Description

Credit facility to finance local infrastructure and other socio-economic development projects in accordance with the approved local development plan and public investment program.

Eligible Borrowers

LGUs that are rated Prime, High Grade and Medium Grade. Lower Medium Grade may avail provided it is within their net borrowing capacity and with prior clearance from the Group Head.

 

Loan Purpose

  • Construction, installation, improvement, expansion, operation or maintenance of infrastructure projects (e.g. market, slaughterhouse, ports, roads, bridges, sports complex, hospitals, schools, etc.)
  • Establishment, development or expansion of agricultural/industrial/commercial livelihood projects and other economic enterprises
  • Acquisition of property, plant, machinery and equipment that will be used by the LGU
  • Land acquisition may be allowed provided it is part of the project and the amount shall not exceed 20% of total project cost

Amount of Loan

Based on project requirement but should not be more than the net borrowing capacity of the LGU

 

Term of Loan

  • Internal: maximum of 10 years
    • ODA/Special Funds: maximum allowable by the fund

Loan Security

  • Assignment on portion of IRA
    • REM on patrimonial properties (not devoted for public use/service)

Contact Person/ Number

Mr. Gene David 522-0000 local 2331 and Ms. Marilyn Orense 522-0000 local 2676