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

Microfinance Program – PCFC

Program Title: People's Credit and Finance Corporation (PCFC) Microfinance Program
Program Objective: To provide the poor with access to livelihood credit and other microfinance services through accredited partner microfinance institutions (MFIs).

Eligible Borrowers / Sub-Borrowers:

• Borrowers (Accredited MFIs) - Non-Government Organizations (NGOs), Cooperatives, Rural and Cooperative Banks, Thrift Banks duly organized, with either a track record of lending operations or with proven capabilities in implementing microfinance programs that can augment the income of targeted poor clients.

• Sub-borrowers - Households below the poverty threshold level as defined by the National Economic Development Authority (NEDA) and as identified by the Government's Social Reform Agenda through the National Anti-Poverty Commission (NAPC).

Loan Purposes:

• Borrowers/MFIs
  • Investment Credit - a revolving credit line for relending to sub-borrowers to finance their livelihood projects.
  • Institutional Credit - for capability building activities of MFIs.
• Sub-Borrowers - working capital for income generating activities (livelihood).

Terms/Requirements:

Amount:

• Borrowers/MFIs - Based on evaluation/credit needs.
• Sub-Borrowers in Groups or Centers or Individuals - Up to a maximum of P150.000.00 depending on sub-borrowers' requirements and cash flows.

Interest Rate:

• Borrowers/MFIs
  • Investment Credit: 12% per annum + 1% service charge
  • Institutional Credit: 3% per annum + 1% service charge
• Sub-Borrowers - Subject to guidelines of the MFI Borrowers.

Maturity / Repayment

a. Borrowers/MFIs

• Investment Credit (per drawdown):
• Institutional Credit: Short 2 yrs, Medium: 3 yrs, Long: 4-7 yrs

b.  Sub-Borrowers - Six months to One year term; normally payable weekly or as per policy of the MFI.

Security

a. Borrowers/MFIs

• Investment Credit: Deed of Assignment of Promissory Notes (PNs) of Sub-Borrower - clients and underlying collaterals, if any.
• Institutional Credit: Mortgage of assets to be acquired from loan proceeds, if any.

b. Sub-Borrowers - Essentially no collateral.

Program Partners or MFIs: Please inquire from the following PCFC officials.

Contact Details:

People's Credit and Finance Corporation (PCFC)
Accelerando Building, 395 Sen. Gil J. Puyat Avenue, Makati City
Fax: (02) 325-0448
Email:  info@pcfc.ph
Web: www.pcfc.gov.ph

Regions 1, 2, and CAR: Mr. Dennis A. Monong, AVP-AMGI, (02) 752-3745
Regions 3 and 5: Mr. Ariel M. Tatlonghari, AVP-AMG2, (02) 752-3747
Regions 4 and NCR: Ms. Jessica A. Barrun, AVP-AMG3, (02) 752.3746
Regions 6, 7, and 8: Mr. Jose Rico C. Coligado, AVP-AMG4, (02) 897-9673
Regions 9, 10, 11, 12, CARAGA, and ARMM: Mr. Erwin M. Idong, AVP-AMG5, (02) 897-9680