Financing Programs Loans and Financing Programs for Micro, Small and Medium Enterprises

Agri-Fishery SME Loans

Purpose of Loan: To provide direct credit access to individuals who are engaged or will engage in the production of agri-fishery commodities, forestry-based projects and livelihood activities.

Clientele:

• Sole Proprietors
• Partnerships
• Corporations/Cooperatives/Federations/POs/NGOs
• LGUs

Eligible Projects:

• Production of grains, fisheries, livestock & poultry, high-value crops
• Retailing, wholesaling, marketing/trading/distribution, packaging, processing/manufacturing of agri-fishery products
• Acquisition/fabrication & upgrading/repair of agri-fishery facilities & equipment

General Eligibility Requirements:

• Must be registered/licensed by an appropriate government agency
• Must not have an outstanding past due loan with any Lending Entities and/or QUEDANCOR
• Must be duly accredited by QUEDANCOR Must have sufficient knowledge/experience or willing to undergo training on the project
• Must be willing to enter into a Memorandum of Agreement/Contract Growing Agreement, if applicable
• Must own the project site or must have a lease agreement with the owner of the project site

Additional Requirements

• For Sole Proprietor: Must be a Filipino citizen and between 18 to 64 years old at the time of application
• Partnerships: Must be 100% Filipino-owned
• Corporations/Cooperatives/Federations/POs & NGOs
  • Must have juridical personality with
  • authority to contract/borrow/lend money
  • Must be good standing with the CDA
  • (for cooperatives)
  • Must have current officers
  • of good moral character
• For LGUs
  • Must have an authority from the Sanggunian Bayan signed by all members authorizing the LGU to apply and enter into a loan agreement with QUEDANCOR
  • Must be willing to provide training, technical & other support needed by its constituents

Loanable Amount

Shall depend on the borrower's project cost/financial condition as determined by QUEDANCOR Credit
Assessment Group (CAG), but not to exceed P5 Million

Term and Mode of Payment

Six (6) months to seven (7) years depending on the cash flow of the project payable in monthly, quarterly, or semi-annually amortizations, as determined by QUEDANCOR Credit Assessment Group (CAG)

Interest

• 16% per annum for production of agri-fishery products and acquisition/repair of machinery & equipment
• 2% per month for purely retailing/wholesaling of agri-fishery products

Service Fee

2% per transaction for loans with a term of one year and 3% per annum for loans with a term of more than one year.  Service fee for the first year shall be deducted from the loan proceeds while payment for the SF for the succeeding year/s shall be collected every anniversary date of the loan.

Other Fees

• Group Credit Life Insurance (GCLI)
• Documentary Stamps
• Accreditation Fee
• Notarial Fee
• Appraisal Fee (if necessary)

Security and Arrangement

• At least 80% REM or 80% combination of REM, Non-Interest Bearing Cash Trust Fund, Bank/Time Deposits, LandBank/Government Bonds/Securities & similar investments
• Deed of Assignment of Receivables supported by a Marketing Contract/Agreement, if applicable
• Borrower must have an equity equivalent to at least 20% of the total project cost
• Chattel Mortgage of agri-fishery machinery & equipment
• Post Dated Checks (PDCs) (except for LGU, National Government Agencies & GOCCs)

General Documentary Requirements

• Application for loan and accreditation with two 2x2 pictures of the authorized representative/s
• Current Permits/Licenses/Registration (NFA, Municipal, SEC, DTI, etc.)
• Project Proposal/Project Feasibility Study or Marketing Contract/Agreement or Farm Plan and Budget or Construction Plan or Projected Cash Flow whichever is applicable
• Board Resolution, Articles of Incorporation/Cooperation/Partnership, By-Laws, if applicable
• Affidavit of no past due loan with any of QUEDANCOR or any other lending institution's loan program
• Certified copy of latest income and business tax returns and tax clearance, audited Financial Statement, if applicable
• Photocopies of collateral/security offered

Collateral Documents

• Transfer Certificate of Title/Original Certificate of Title
• Tax Declaration
• Latest Tax Payments receipts/Tax clearance
• Lot plan/Vicinity map
• Picture of property offered as collateral
• SPA, if collateral is not owned by the applicant
• Government bond/securities/shares of Stocks or bank deposits & placements
• Certificate of registration (chattel) and/or substitute documents

Contact Details

Quedan and Rural Credit Guarantee Corporation
No. 34 Panay Ave., Quezon City
Tel. Nos.: (02) 373-97-11 (02) 373-94-53
Telefax: (02) 373-94-52
Web: www.quedancor.gov.ph, www.geocities.com/pio_quedancor