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

People’s Credit and Finance Corporation

People's Credit and Finance Corporation (PCFC) shall be the viable and sustainable leader in the provision of financial products and services to generate income opportunities and improve the lives of the poor

It shall assist in the development of microfinance institutions and micro finance industry

Types of projects to be funded by the MFIs depend upon the needs and capabilities of the sub borrowers or clients. The clients shall decide on the type of projects to be undertaken with the program advising him in determining the viability of the project. However, the following guidelines must be followed in determining the type of project of the clients:

1. Viable & has a ready market for the product or service
2. Able to generate income for the clients within a short period of time, i.e. daily, weekly, monthly cash flows.
3. Within the capability of the clients to manage
4. Able to generate savings for the clients
5. Complies with all government rules and regulations.

Accreditation Criteria

Eligible borrowers are NGOs, Coops and FIs duly organized, with either a track record of lending operations or with proven capabilities in implementing micro finance programs for the poor.

To qualify for accreditation, the organization must pass the following institutional, financial and lending performance criteria:

Institutional Criteria

• Duly registered with either Securities and Exchange Commission (for NGOs), Cooperative Development Authority (for Coops) or Bangko Sentral ng Pilipinas (for Rural, Thrift and Coop Banks);
• Track record of at least 3 years in lending operation of the institution or at least 2 of its key officers/board members have microfinance experience;
• Credible and competent Board Directors;
• Presence of full time core management Team;
• Presence of a separate unit for the program with full time staff with basic background on credit and financial management;
• Presence of a separate unit for the program with full time staff with basic background on credit and financial management;
• Presence of a savings mobilization program;
• Presence of a staff development program;
• Presence of an MIS, Accounting and Internal control Systems;
• No major exceptions per most recent audit nor adverse credit information/findings.

Financial Criteria

• Total resources of at least Php 5.0Mn, net worth of at least Php 2.0Mn
• For Banks: Not less 10% Capital - to Risk Assets after PCFC and other creditors.
• For Coops and NGOs: Fund Balance/members equity to risk assets (per BSP definition) of at least 10% after PCFC & other creditors provided bills payable should not exceed 80% of total liabilities
• Profitable for at Least 3 years

Lending Performance Criteria

• Has at least 500 existing borrowers for Coops & banks; 1,000 existing microfinance borrowers for NGOs
• Collection rate of at least 85% in all lending programs;
  95% collection rate for microfinance program;
• Past due rate of not more than 20% on overall lending operations for banks; not more than 15% for NGOs & Coops; not more than 13% in the PCFC Program;
• For WB-MLF Financed Subsidiary Loans: (additional criteria)
  Net past due to equity (NPDE) ratio not exceeding 15%. A higher NPDE ratio of not more than 35% may be acceptable provided a written commitment/action plan would be required to gradually reduce the ratio to the desired 15% by December 31, 2005

Contact Details:

Accelerando Building
395 Sen. Gil Puyat Ave., Makati City
Phone: (02) 897-8549/5822, 899-6074, 752-1491
Fax (02) 897-8523/8528
Email: info@pcfc.ph
Web: www.pcfc.gov.ph

Regional:

• Regions 1,2 & CAR (02) 752-3745
• Regions 3 & 5 (02) 752-3747
• Regions 4 & NCR (02) 752-3746/8996072
• Regions 6 - 8 (02) 897-9673
• Regions 9, 12, Caraga & ARMM (02) 897-9680