DEPARTMENT OF AGRICULTURE – AGRICULTURAL CREDIT POLICY COUNCIL
28th Floor, One San Miguel Avenue Building, San Miguel Avenue Ortigas Center, Pasig City 1605

Program Title: COOPERATIVE BANK AGRI-LENDING PROGRAM (CBAP)

A Memorandum of Commitment between the Cooperative Banks Federation of the Philippines and the Department of Agriculture (DA) was signed during the National Food Summit held on April 4, 2009 for the implementation of the Cooperative Banks Agri-lending Program (CBAP). The CBAP is aimed at enhancing the responsiveness and capacities of cooperative banks and financial cooperatives in providing sustainable lending to agricultural borrowers.

Cooperative Banks participating under the CBAP are committed to leverage the initial P300 million program fund from the DA-Agricultural Credit Policy Council (DA-ACPC) up to five times to generate up to P1.5 billion in loans for agricultural borrowers.

Program Objective: To increase the outreach of government’s agricultural credit funds by tapping cooperative banks as conduits, and to increase access to sustainable financial services among small farmer and fisherfolk households.

Program Scheme:
CBAP funds are coursed through Wholesaler Cooperative Banks and the United Coconut Planters Bank (UCPB) which provide wholesale loans to accredited Retailer Cooperative Banks/Institutions.

The Retailer Cooperative Banks/Institutions leverage the funds from three (3) to five (5) times and use these in providing microfinance loans to small farmers/fisherfolk and their household members who have viable agriculture and fisheries projects.

Program Features:

Eligible Sub-Borrowers:
 * Eligible borrowers are the household heads, spouses, or adult working members of small farming/fishing households.
Only one member per household is qualified to borrow at a single time under the program.

Loan Purpose:Agricultural and fisheries projects of small farmers and fisherfolk.

Sub-Loan Limits:
 * For borrowers with no collateral: P30,000.00/ha. up to a maximum of P210,000 per borrower
 * For borrowers with collateral: The generally accepted industry practice on loan valuations.

Interest Rates on Sub-Loans: Varies depending on the coopbank but shall not exceed 20% per year.

Sub-Loan Repayment:
 For agricultural loans: Repayment upon loan maturity depending on the type of commodity but not to exceed two years.
 For microfinance loans: Weekly or monthly payments within the term of the loan.

Contact Details:
Agricultural Credit Policy Council Phone (632) 636.3393 URL: www.acpc.gov.ph

Source: Financing Program for Micro, Small, and Medium Enterprises 2010 Ed.- BMSMED