employee loans photo
Photo by Got Credit

2F, Accelerando Building, 395 Sen. Gil J. Puyat Avenue, Makati City


Program Objectives: To augment the MFI’s employees’ income by financing MFI’s loan program for them, thereby supporting the government’s efforts to reduce widespread poverty in the country.

Eligible Borrowers:
– PCFC to MFI – accredited MFI partners
– MFI to Borrower – MFI employees (priority to microfinance program staff)

Loan Purpose:
– PCFC to MFI – to finance the MFI’s loan program for its employees.
– MFI to Borrower – multi-purpose loan e.g. livelihood, salary loan, educational, emergency, appliance loan, house repair, hospitalization, etc.

Type of Credit Facility: One year revolving credit line


Loan Amount:
– PCFC to MFI – based on credit needs of MFI staff at 85% of credit needs of value of sub-PN as indicated in the MFI Employees Credit Availment Plan (MECAP)
– MFI to Borrower – based on net take-home-pay of staff and/or household cash flow but not to exceed P50 Thousand per employee in accordance with MFI guidelines

Interest Rate and Service Charge:
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 guidelines

Maturity and Mode of Payment:
– PCFC to MFI – up to 3 years PN; quarterly amortization
– MFI to Borrower – based on MFI’s policies and guidelines but not to exceed 3 years PN; payroll deduction every 15 days

Manner of Availment:
– PCFC to MFI – reimbursement basis (i.e., drawdown against actual loan releases to staff)
– MFI to Borrower – based on MFI’s guidelines [Liquidation basis (drawdown based on projected needs) is suggested.]

– PCFC to MFIs – post-dated checks; Deed of Assignment of sub- PNs and all underlying collaterals
– MFI to Borrower – against staff salary and benefits and other security requirements of the MFI

Basic Implementing Guidelines:
– For all MFIs, the line for this facility shall be equivalent to not more than 50% of investment credit facility or P20 million whichever is lower.

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