PEOPLE’S CREDIT AND FINANCE CORPORATION (PCFC)
2F, Accelerando Building, 395 Sen. Gil J. Puyat Avenue, Makati City

Micro-Housing Loan Facility 1

Program Title: MICRO-HOUSING LOAN FACILITY

Program Objective: To support the government’s effort to improve the quality of life of the poor thru financial assistance for housing improvement such as house repairs, renovation or expansion.

Eligible Borrowers:
* PCFC to MFI – accredited MFI partners
* MFI to Borrower – low income families in urban and rural areas

Loan Purpose:
* PCFC to MFI – to finance the MFI’s relending program for its end-clients
* MFI to Borrower – to finance home improvement (repair, renovation, completion, expansion)

Type of Credit Facility: Term loan (non-revolving) available within one year from approval of credit facility

Terms/Requirements:

Loan Amount:
* PCFC to MFIs – based on 85% of credit needs of end-clients as indicated in the Housing Availment Plan (HAP)
*MFI to Borrower – in accordance with MFI’s credit policies and end-clients repayment capacity (cash flow) but shall not go beyond P150 Thousand inclusive of end-clients other loans with the MFI. (Labor may be provided as counterpart of end-clients.)

Interest Rate and Service Charge:
* PCFC to MFI
o For PNs with term of 1 year and below – 11% p.a. plus 1% service fee
o For PNs with terms of more than 1 year – 12% p.a. plus 1% service fee
* nMFI to Borrower – based on MFI’s credit policies and guidelines

Maturity and Mode of Payment:
* PCFC to MFIs – up to 5 years inclusive of 6-month grace period on principal for PNs with terms of 2 years or more; quarterly amortization on principal and interest
* MFI to Borrower – based on MFI’s credit policies and guidelines but not to exceed 5 years

Manner of Availment:
* PCFC to MFI – reimbursement basis (i.e., drawdown against actual loan releases to end-clients) or liquidation basis (i.e., drawdown based on projected loan releases); list of borrowers to be submitted within 2 months from drawdown with PCFC.
* MFI to Borrower – based on MFI’s credit policies and guidelines (Staggered release based on work progress subject to loan utilization check of previous drawdown is suggested.)

Security:
* PCFC to MFIs – post-dated checks; Deed of Assignment of sub-PNs and all underlying collaterals
* MFI to Borrower – based on MFI’s credit policies and guidelines, i.e., chattel mortgage and insurance for loans above P75 Thousand

Additional Availment Requirements:
* PCFC to MFI – submission of Housing Availment Plan (HAP)
* MFI to Borrower – The house repair loan should be supported by a livelihood project and/or total household cash flow analysis.

Contact Details:
Phone (632) 897.8521 752.3745
If you are from:
Regions 1, 2, 3, and CAR Local 125
Regions 4A,4B, 5 and NCR Local 134
Regions, 6, 7 and 8 Local 144
Regions 9, 10, 11, 12, Caraga & ARMM Local 156
E-mail: info@pcfc.ph
URL: www.pcfc.gov.ph