Countryside Loan Fund Programs (CLF I, II, and III)

Program Objectives: A wholesale credit facility from World Bank made available to Participating Financial Institutions (PFIs) for on-lending to eligible private investment enterprises:
– To provide financial support to the rural economies to emerge stronger from the financial crisis and resume sustained rapid economic growth in the near term;
– To support the government in its effort to alleviate rural poverty by accelerating private investments in the countryside to boost productivity, generate employment, and raise income;
– To provide further assistance through additional short, medium, and long term financial resources for viable investments in the rural areas; and
– To generate foreign exchange awareness or savings to improve the country’s balance of payment position.

loan photo

Photo by aronbaker2 Countryside Loan Fund Programs (CLF I, II, and III) 1

Eligible PFIs:
– Commercial Banks/Unibanks
– Rural Banks
– Thrift Banks
– Non-bank financial institutions

Eligible Sub-Borrowers:
– Sole Proprietorships
– Partnerships
– Corporations (at least 70% Filipino-owned)
– Cooperatives/Associations

Eligible Projects:
– Agriculture and agri-related activity;
– Food and agro-processing venture;
– Manufacturing activity that generates employment/export;
– Product distribution activity/Trading;
– Service-oriented project that supports economic activity;
- Environmental protection project;
– Tourism-related project; and
– Property development project:
CLF I & II – Industrial Estate Development.
CLF I, II, & III – Socialized and Low Cost Housing Projects,
Commercial Building for lease with a gross/total floor area of not more than 15,000 sqm., including parking and other
areas.

Note: Projects for funding under the CLF Programs must comply with all the laws and regulations of the Philippines related to environmental protection.

Eligible Sub-Project Location:
– CLF I & II – Nationwide; sub-projects located in NCR should be engaged in agriculture and agri-related activities.
– CLF III – Nationwide; sub-projects located in Cebu City and
– NCR should be engaged in agriculture and agri-related activities.

Loan Purposes:
– Working Capital – initial, incremental or existing;
– Fixed Asset Investment – construction, expansion, or rehabilitation of productive facilities excluding land purchase; and,
– Special Financing Package (for CLF III only) – any or combination of the following:
Extension of maturity or grace period of existing loan
Conversion of existing dollar loan to peso loan
Cost overruns due to price escalation/peso depreciation

Terms/Requirements:
Loan Amount:

MinimumMaximum
CLF IP100,000.00P300,000,000.00
CLF IIP100,000.00P300,000,000.00
CLF IIIP100,000.00P300,000.00

Interest Rates:
– LANDBANK to PFIs
Variable Rate – Based on Weighted Average Interest Rate of 91-day Treasury Bills or floor price, whichever is higher.
Fixed Rate – prevailing variable rate plus a 1% premium based on the remaining term of loan with maturity not to
exceed 3 years.
– PFI to Sub-borrower – As negotiated between PFI and the sub-borrower

Maturity / Repayment:

CLF ICLF IICLF III
Short TermUp to one yearNot availableUp to one year.
Medium TermNot availableUp to 2010Up to five years.
Long TermNot availableUp to year 2018

Monthly or Quarterly payments.

Security: Loans shall generally be secured by tangible collaterals (i.e., Real Estate/Chattel Mortgage, Mortgage Trust Indenture, Hold-out on deposits, etc.) or acceptable guarantees consistent with current banking practices, pertinent laws and BSP regulations.

Contact Details:
Wholesale Lending Department 

  Locals 7338, 2365, 2364, 2797, 2707, 7239
Fax: (632) 528.8503
E-mail: plg@mail.landbank.com