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

Microfinance Program for NGOs and Cooperatives

Program Objectives:

• To support the government's efforts to alleviate poverty and attain sustainable economic growth and development in partnership with microfinance institutions (MFIs).
• To hasten the development and growth of MFIs as well as enhance their efficiency and effectiveness as conduits of development funds for micro-enterprise development by providing them direct and convenient access to DBP's credit and technical assistance specially designed to support their investment projects and capacity-building programs.
• To facilitate the access of micro-investment enterprises and the entrepreneurial poor to formal credit and banking services, that include but are not limited to training, market assistance, business consultancy, whenever possible, to hasten their growth and development.

Eligible Borrower-MFIs:

Bank MFIs

• Microfinance Banks - banks organized primarily for and granted a license by the BSP as microfinance banks.
• Microfmance-oriented Banks - banks which diversified into microfinance with 50% or more of their total loan portfolio devoted to microfinance.
• Banks authorized by the BSP to diversify into microfinance which MF loan portfolio has yet to attain the 50% requirement to be considered microfinance-oriented banks, and their existing or proposed principal transaction with the DBP is microfinance.

Non-Bank MFIs

• Non-government organization (NGO) with successful microfinance operations for 3 years or more for all types of MFC loans.
• Non-Government organization (NGO) with successful microfinance operations for a minimum of one (1) year but less than three (3) years for capacity-building loans only.
• Cooperatives - primarily savings and credit cooperatives with successful microfinance operation for a minimum of one year.

Terms/Requirements:

Loan Amount: The loan amount will always depend on the project funding requirements of the MFIs.

Interest Rates:

• Wholesale loans: Market rate
• Business Development loans: Market rate
• Capacity-Building loans: Lower than market rate, but not lower than cost of funds plus 2% administrative cost

Contact Details:

Development Bank of the Philippines
Head Office Sen. Gil J. Puyat Avenue, cor. Makati Avenue. Makati City
Head. Small & Medium Enterprise Department
Phone: 815-1520, 894-4927, 892-5727/2557/2357