Micro-Energy Credit Program

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

Program Title: MICRO-ENERGY CREDIT PROGRAM

Program Objectives: To support reforms and priority investments to improve the quality of life in rural areas through the provision of adequate, affordable and reliable energy services specifically the small-scale renewable energy solar home system/solar lanterns. The program is operationalized in partnership with viable microfinance institutions.

Eligible Borrowers:
– PCFC to MFI – accredited MFI partners
– MFI to Borrower – Low Income families in urban and rural areas (Suggested priority areas are households in an un-energized barangays and un-energized households in “energized” barangays.)

Loan Purpose:
– PCFC to MFI – to finance the MFI’s micro-energy program for its end-clients
– MFI to Borrower – to finance the acquisition of small scale renewable energy solar home system/solar lanterns of poor individual households

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

Terms/Requirements:

Loan Amount:
– PCFC to MFI – based on 85% of credit needs of end-clients as indicated in the Solar Availment Plan (SAP).
– 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.

Interest Rate and Service Charge:
– PCFC to MFI
o For Promissory Notes 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
– MFI to Borrower – based on MFI’s credit policies and guidelines

Maturity and Mode of Payment:
– PCFC to MFIs – up to 5 years PN; quarterly amortization
– MFI to Borrower – based on MFI’s credit policies and guidelines but not to exceed (5) five 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 (Loan utilization check within 30 days from release is suggested.)

Security:
– PCFC to MFIs – post-dated checks; Assignment of (a) all PNs of end-clients or MFI’s receivables from end-clients, (b) credit guarantee proceeds, and/or (c) buy-back proceeds.
– 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 MFIs – submission of Solar Availment Plan (SAP)
– MFI to Borrower – based on MFI’s credit policies and guidelines. The micro energy loan should be supported by a livelihood project and/or total household cash flow. [Loan Guarantee Fund (c/o RPP-LGF) and Buy Back Scheme (c/o supplier) are suggested.]

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

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