Microfinance Program For Microfinance Institution (MFI)

LAND BANK OF THE PHILIPPINES (LBP)
1598 M.H. Del Pilar corner Dr. J. Quintos Streets, Malate, Manila

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Program Title: MICROFINANCE PROGRAM FOR MICROFINANCE INSTITUTIONS (MFI) – RETAILERS

Program Rationale and Objectives

General
* LBP is mandated by Law (RA 8425, otherwise known as the Social Reform and Poverty Alleviation Act) to open a special wholesale lending window for micro-borrowers;
* It also supports Countryside Financial Institutions (CFIs) to meet the new mandatory allocation of credit resources for MSMEs as provided for under BSP Circular No. 625, series of 2008, and under the Magna Carta for MSMEs.

Specific:
* Strengthen partner-Microfinance Institutions (MFIs) in its microfinance operations and help deliver capacity building support to micro-enterprises;
* Expand the bank’s outreach to the poor who do not have access to the formal financial system; and
* Promote savings mobilization of poor households.

Basic Features

Program Conduits: As wholesaler of funds, the LBP taps the following entities as microfinance program conduits:
* Cooperatives (Coops)
* Countryside Financial Institutions (CFIs), composed of rural banks, cooperative banks and thrift banks
* Non-Government Organizations (NGOs)

Major Eligibility Criteria for Availing MFIs
* Duly registered with CDA, in case of coops; BSP and SEC, in case of CFIs; and SEC, in case of NGOs;
* With at least three (3) consecutive years experience in lending; , one year (most recent) of which is in microfinance;
* With audited financial statements (FS) for the last three (3) years (audit conducted by an external auditor);
* With capacity to engage in microfinance, as evidenced by the following:

o Established MIS/loan tracking system;
o Microfinance operating manual/systems and procedures;
o Microfinance business plan for at least three (3) years duly approved by its Board of Directors;
o At least two (2) members of its Board of Directors (BODs)/ officers are trained and familiar with microfinance; and
o With a separate unit to handle microfinance operations.

Available Credit Facility:
* Short Term Loan – Working Capital & Rediscounting
* Term Loan – Working Capital & Rediscounting Basic Documentary Requirements:

Basic Documentary Requirements:
* Certified true copy of the certificate of registration with: CDA, in case of coops; BSP and SEC, in case of CFIs; and SEC, in case of NGOs;
* Certified true copy of Articles of Cooperation (for Coops), and Articles of Incorporation for CFIs and NGOs;
* Information Sheet of the Board of Directors and Officers;
* Board Resolution authorizing the MFI to borrow, and designating at least two (2) officers to negotiate loan with LBP and sign loan documents with their specimen signature and pictures, and;
* Audited FS for the last 3 years plus latest interim FS at the time of application.

Contact Details:

Programs Management Department I (PMD I)
Phone: (632) 522.0000, (632) 552. 2200 locals 2376; 2307; 2384
Direct Line: (632) 405.7427
Fax: (632) 528.8542
E-mail: gangeles@mail.landbank.com; hbautista@mail.landbank.com