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

Program Title: CREDIT PROGRAM FOR COOPERATIVES

Program Rationale and Objective: To help augment income, generate more economic activities and transform people’s lives.

Credit Program for Cooperatives 1

Basic Features:

Eligible Borrowers
* Agricultural Cooperatives (Agri-Coops) – composed of majority of small farmers and fisherfolk and small hog/poultry/ livestock raisers;
* Non-Farmers or Credit Cooperatives – composed of market vendors, employees, teachers, rural workers, etc.;
* Institutional/Employees’ Cooperative and Associations – composed of regular / permanent employees of an agency

Basic Accreditation Criteria for Availing Cooperatives – In order for a coop to avail of the LBP credit facilities, it has to meet the minimum accreditation requirements of the bank

Available Credit Facility:
* Agricultural Production Loan (APL) – short/medium/long term loans (depending on the gestation period of the crops/ projects), for relending to cooperative members intended to finance crop production, livestock and poultry raising/breeding, fishery and aquaculture projects, and other agri/aqua-related projects, including cottage industries which utilize excess farm labor.
* Working Capital Loan (WCL) – intended to finance cooperative activities requiring operating capital for the
purchase of raw materials, processing and trading of inputs and/or finished products, and the operation of fixed assets.
* Rediscounting Line (RL) – to supplement the cooperative’s operating capital via rediscounting of promissory notes of its members.

Terms/Requirements:

Loan Amount:
* Depends on the project needs or established loan ceilings for traditional and high-value crops which should not exceed 80% of the project cost;
* For rediscounting, maximum of 85% of the outstanding balance of the sub-promissory notes;
* For Institutional/ Employees’ Cooperatives, up to six (6) months of the employees-sub-borrower’s basic salary but not to exceed P300,000.00 or must be within the amount of bonuses and benefits to be received by the employee-sub-borrowers, for the PNs rediscounted against the bonuses/benefits, provided further that the total loanable amount, inclusive of the loan amount against the salary, will not exceed P300,000.00.

Interest Rate: (subject to annual review by the bank, or whenever necessary depending on the market condition)

* Based on the prevailing prime rate at the time of loan availment plus a spread ranging from 3% to 6%, depending on the bank’s established risk factors, such as coop’s type (agri or non-agri and loan security (secured or non-secured).
* For institutional/employees’ cooperatives and associations, 11% per annum.

Term of Loan/ Mode of Payment:
* Based on the crop cycle and project cash flow
* For Institutional/ Employees’ Cooperatives and Associations – up to two (2) years, payable in monthly amortizations

Documentary Requirements (Pre-processing):
* Duly accomplished LBP loan application form;
* Certified true copy of the Certificate of Registration with the Cooperative Development Authority (CDA) and Articles of Cooperation and By-Laws;
* List of Board of Directors and Officers with bio-data and ID pictures, certified by the Board Secretary and attested by the Coop Chairman;
* Board Resolution authorizing the cooperative to borrow (stating the amount and purpose of loan) and designating at least two (2) officers to negotiate and sign documents with their specimen signatures and pictures;  Audited Financial Statements (FS) for the last three (3) years, plus interim FS at the time of application; or interim FS for new coops;
* Masterlist of registered members with name of spouses, address, area and location of farm (if any), amount of subscribed and paid-up capital and specimen signatures prepared by the Board Secretary and attested by the chairman (applicable to new cooperatives).

Contact Details:

Programs Management Department I (PMD I)
Phone: (632) 522.0000, (632) 551.2200 locals 2376; 2307; 2384, (632) 405.7427
Fax: (632) 528.8542
E-mail: ddomingo@mail.landbank.com;
hbautista@mail.landbank.com