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

National Livelihood Support Fund (NLSF)

Program Title: NLSF Microfinance Program
Program Objective: To provide livelihood and enterprise development assistance to small farmer beneficiaries in the Agrarian Reform Communities (ARCs) and members of the marginalized sectors by providing access to micro credit through accredited NLSF program partners/conduits, supported by capability building/institutional development interventions.

Eligible Borrowers:

a. Program Partners/Conduits

• Rural Financial Institutions (RFIs)
• Cooperatives
• Non-Governmental Organizations (NGOs)

b. End-Borrowers

• Small farmer households and their organizations in the ARCs
• Enterprising poor in the marginalized communities, including coconut farmers/workers under the Credit Assistance for Coconut Famers (CACF) Program; youth graduates (18-35 years old) of entrepreneurial or skills training programs of TESDA and NYC (preferably out-of-school youth).

Loan Purposes:

a. Omnibus Credit Line - funds for relending to finance the livelihood project requirements of end-borrowers.

b. Soft Loan - intended to finance the logistic support expenses of the client in implementing the NLSF-funded credit program. The loan can be used specifically for the following:

• Conduct of capability-building/training programs for all the staff of the conduit handling the NLSF livelihood credit program and the conduct of social preparation activities for the sub-borrowers.
• Logistic support expenses as allowed by NLSF and depending on its assessment of the needs of the client.

Terms/Requirements:
a. Amount:

a1. Program Partners

• Omnibus Credit Line- Depends on the credit evaluation, program plans and number of target end-borrowers but not to exceed its total asset base.
• Soft Loan - depends on the needs of the Program Partner as assessed by NLSF but not to exceed 10% of the approved credit line. There must be at least 50% availment from the credit line for relending before the soft loan could be availed of.

a2.     End-Borrowers - Maximum of P50.000.00 per sub-borrower.

b. Interest Rates:

b1.     Program Partners

• Omnibus Credit Line- 9% per annum
• Soft Loan - 4% per annum; loan duration shall depend on the nature of the soft loan utilization but not to exceed three (3) years.

c. Security:

c1.    Program Partners

• Continuing Deed of Assignment of sub-borrowers' Promissory Notes and their underlying collaterals
• Post-dated Checks
• Chattel or Real Estate Mortgage, if any.

c2.      End-Borrowers - no collateral

d. Application Requirements

• Accomplished NLSF application form
• Registration and Incorporation papers
• Board Resolution authorizing the borrowing from NLSF and designating the officers to sign the documents Personal Data Sheet of the Board of Directors and Principal Officers including 2'X2' pictures
• List of top 20 stockholders or regular members for coops or active/ founding members for NGOs
• 3 Years Audited plus latest interim Financial Statements Latest Microfinance Project Status Reports

Contact Details

4th Floor Mansion Building, Emerald Avenue Ortigas Center, Pasig City
Phone: (02) 631-2955/57/44/47,  (02) 914-7290 to 97
Fax:  (02) 631-2953/54
Email:  nlsf@nlsf.gov.ph
Web: www.nlsf.gov.ph