Department of Agriculture
Agricultural Credit Policy Council |
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in cooperation with |
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LandBank of the Philippines
and
Quedan Rural Credit
& Guarantee Corporation |
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The Innovative Financing Schemes |
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 |
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DA-GMA's
Hybrid Rice Credit Assistance Program (HyCAP) |
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......is a credit scheme for Small Hybrid Palay
Farmers Through Traders/Millers under the Special Agricultural Financing Window (SAFW)
of the Agricultral Credit Policy Council (ACPC), LandBank of
the Philippines (LBP) and Quedan Rural and Credit Guarantee Corporation
(Quedancor). |
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I. Objective
The proposed DA-GMA's HyCAP aims
to provide accessible credit to collateral-short farmers who are
qualified to plant hybrid rice.
II. The Scheme
The proposed scheme for Hybrid Rice
Program will use the Special Agricultural Financing Window (SAFW)
of the ACPC and LandBank. In order to cater to the specific needs
of the small palay farmers adopting this new rice technology,
the Program intends to make use of palay trader-millers as rural
lending agents which shall take on the dual role of addressing
the marketing needs of these same farmer-borrowers.
- LandBank to provide liquidity
assistance thru a credit line to qualified palay trader-millers
which shall act as rural lenders.
- QuedanCor to cover 85%
of the rural lender's loan portfolio.
III. Policies
and Guidelines
Lending Agents
Eligibility Criteria - palay trader-millers with asset
size above P1.5 million with good track record in borrowing;
profitable for the last 3 years; no ownershipt and/or labor dispute
for the past 3 years; debt-to-equity ratio not exceeding 80:20;
at least 60% Filipino-owned, if corporation and 100% Filipino-owned
if single proprietorship.
Amount of Credit
Line -
shall not exceed 60% of the appraised collateral value.
Interest Rate - 10% + 2% Service fee.
Loan Maturity
and Mode of Payment
- shall be based on the 180 days Promisory Notes of sub-borrowers.
Repayment Arrangement - Amount equivalent to face value
of cheque: outstanding loan amount +10% interest +2% service
fee.
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- Sub-borrowers
Eligibility Criteria - small individual palay farmers
of irrigated farms with experience in hybrid seed growing but
must not be a member of a LandBank-accredited cooperative.
Eligible Projects - Production of hybrid palay and
procurement of production inputs such as seeds, fertilizers,
etc.
Pass-On Rate
by Lending Agent
- Maximum spread of 7%.
Repayment Arrangement - Payment-in-Cash equivalent to
total loan or Payment-in-Kind, i.e. the volume of palay equivalent
to the amount of outstanding loan, inclusive of interest.
- For more information,
contact:
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- Deparment of Agriculture
(DA)
- Tel. No. (02) 925-2152
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- Agricultural Credit Policy
Council (ACPC)
- Tel. No. (02) 634-3320
or 634-3321
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- LandBank of the Philippines
(LBP)
- Tel. No. (02) 405-7249
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- Quedan Rural and Credit
Guarantee Corporation (QuedanCor)
- Tel. No. (02) 373-9711
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- National Food Authority
(NFA)
- Tel. No. (02) 712-1928
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