Department of Agriculture Agricultural Credit Policy Council in cooperation with	LandBank of the Philippines and Quedan Rural Credit & Guarantee Corporation
The Innovative Financing Schemes

Special Agricultural Financing Window (SAFW)  A credit line/rediscounting facility designed to encourage rural lending agents to lend to collateral-short small farmers and fisherfolk.

Obective

       To reduce agri-lending risk and induce the flow of funds from private urban-based banks to small farmers and fisherfolk

Loan Purpose

       To finance agricultural crop production, livestock, poultry and fishery projects

Lending Agents

• Banks (universal banks, rural banks, commercial banks, cooperative banks, thrift banks and private development banks)
• Cooperatives
• Agri-Based Enterprises
• Non-Government Organizations, People’s Organizations and other Institutions with juridical personality
  

Eligibility Criteria

Banks Risk Asset Ratio (RAR) of not less than12%; Past due rate of not more than 25%; Profitable operations for the last three years; Not experiencing liquidity problems; No serious irregularities and exceptions found per latest BSP and LBP examination; and, With no outstanding past due obligations with its creditors.

Agricultural-Based Enterprises (ABEs) Profitable for the past three years; No ownership dispute for three years; No major labor dispute for the past three years; No adverse findings on the owners and management; Debt to equity ratio should not exceed 80:20; and, At least 60% Filipino owned if corporation and 100% Filipino owned if single proprietorship.

Cooperatives Registered with the Cooperative Development Authority; With lending experience equivalent to at least three years; Past due rate of not more than 25%; With written policies, systems and procedures on lending, accounting and bookkeeping and with installed books of accounts; With a Core Mgt. Team composed of at least a full-time manager, duly bonded treasurer and bookkeeper; With installed Capital Build-Up and Savings Mobilization Program; and, With no outstanding past due obligations with its creditors.

NGOs,POs, & other Institutions Registered with the Securities and Exchange Commission or other registering government entity; With lending experience equivalent to at least three years; Past due rate of not more than 25%; With written policies, systems and procedures on lending, accounting and bookkeeping and with installed books of accounts; With a Core Mgt. Team composed of at least a full-time manager, duly bonded treasurer and bookkeeper; and, Authorized to borrow and lend under its Articles of Incorporation or Charter (in case of State Colleges or Universities)

Financing Facilities

Rediscounting Line for Banks

       Promissory notes issued by qualified sub-borrowers of banks under this program can be rediscounted up to 100% of the face value

Credit Line or Rediscounting for all other types of Lending Agents

       Eligible cooperatives, ABEs, NGOs/POs and other institutions could avail of a rediscounting line or credit line from the program.

Eligible Sub-borrowers

       Eligible sub-borrowers are small farmers and fisherfolk who are not existing borrowers of any of the lending agents

Eligible Projects

• Agricultural crop production
• Livestock
• Poultry
• Fishery projects; and
• Payment for farm services (labor, animal, machines).

Loan Ceiling

• Credit line/Loan Limit to Lending Agents
• Loan limit for Sub-Borrowers

 

      The loan amount shall depend on the type of the project to be undertaken    by the individual sub-borrower but not to exceed P150,000.00 per sub-borrower.