Other agricultural Credit Loans

Objectives: To provide loan facilities to fishermen and farmers who are not beneficiaries of agrarian reform for the purpose of financing activities related to agriculture and fisheries and processing, marketing, storage and distribution.

Target market:

1. Fishermen
2. Farmers who are not agrarian reform beneficiaries
3. Agricultural entrepreneurs
4. Cooperatives engaged in agri-fisheries production
5. Fishpond Owner
6. Fishpond Tenant

Features of the Loan Product:

• Interest Rate: 10% – 19% p.a.
• Service Charge: 5%
• Processing Fee: 0.5%
• Maturity: 180-1,080 days; depending on loan purpose. If the purpose is for production, repayment of the loan shall coincide with the production cycle of the crops/livestock. If purpose is for purchase of machinery and equipment, maximum term is 3 years with periodic payment to coincide with production cycle.

A.  Acquisition of Agricultural Land

• Loanable Amount: 80% of the acquisition cost of the agricultural land
• Term: 3 – 5 years
• Mode of Payment: Every harvest
• Security: Real Estate Mortgage
• Loan Monitoring: Project visit during every harvest

B.  Acquisition of Work Animals/Cattle for Agricultural Production

• Loanable Amount: 80% of the market value of the work animal
• Equity required: 20% of the market value of the work animal
• Maximum term: 2 years
• Mode of Payment: Every harvest but not to exceed the maximum term of the loan
• Additional documentary requirements: Certificate of Ownership of Large Cattle
• Loan covenant: Require forage to sustain the work animal
• Loan monitoring:  Project visit during harvest season

C.  Acquisition of Farm Equipment  and Machinery for Agricultural Production

• Acquisition shall be limited to Rice Thresher and Hand Tractor only
• Loanable Amount: Actual acquisition cost
• Maximum Term: 2 years
• Mode of Payment: Every harvest
• Security: Chattel Mortgage or Real Estate Mortgage for loans exceeding  50,000.00
• Loan monitoring: Project visit during harvest season
• Other Requirements: Registration of the farm equipment with the NFA

D.  Land Preparation and Cultivation

• Loanable Amount: 50% of total cost of land preparation and cultivation
• Loan monitoring: Project visit during harvest season
• Security: Chattel Mortgage or Real Estate Mortgage for loans exceeding P50,000.00

E.  Purchase of Commercial/Organic Fertilizers and/or Pesticides/Herbicides

• Loanable Amount:  80% of the total cost of fertilizers required for crop production
• Maximum Term:  One production cycle
• Security: Chattel Mortgage or Real Estate Mortgage for loans exceeding P50,000.00

F.  Purchase of Planting Materials/Seeds

• Loanable Amount:  80% of the cost of planting materials or seeds required for crop production
• Maximum Term:  After harvest (short-term)
• Security: Chattel Mortgage or Real Estate Mortgage for loans exceeding P50,000.00

G.  Labor during Harvest

• Loanable Amount:  80% of the cost of labor during harvest
• Maximum Term:  After harvest (short-term)
• Security: Chattel Mortgage or Real Estate Mortgage for loans exceeding P50,000.00

H.  Acquisition of Banca

• Loanable Amount: 90% of Acquisition Cost
• Maximum Term: 2 years
• Mode of Payment: Monthly during fishing season (March – September)
• No collateral required
• Other requirements:  Registration of the wooden banca with the Local Government

I.  Acquisition of Motorized Banca

• Loanable Amount: 90% of Acquisition Cost
• Maximum Term: 2 years
• Mode of Payment: Monthly during fishing season (March – September)
• Security: Motorized Banca (Chattel Mortgage)
• Other requirements: Registration with concerned regulatory body, whenever applicable

J.  Fishpond Production – Purchase of feeds, fingerlings & payment for labor

• Loanable Amount: 90% of Total Cost required for production
• Maximum Term: One production cycle
• Security: Chattel Mortgage or Real Estate Mortgage for loans exceeding P50,000.00