Micro-Financing Programs for entrepreneurs

1.Agri-Microfinance Program (AMP) for Small Farmers and Fisherfolk and their Households for El Niño and Calamity Stricken Areas

Program Objectives: The program aims to reduce poverty and improve the quality of life of marginalized farmers and fisherfolk by financing agricultural projects and activities that will increase their productivity and incomes.

Program Scheme: The project entails provision of a credit facility by the PCFC under a credit fund and risk sharing arrangement with the Agricultural Credit Policy Council (ACPC) to qualified borrower organizations to complement and supplement their incremental credit requirements for re-lending to small farmers and fisherfolk households and groups/organizations.

Program Features:

Microfinance institutions (MFIs) such as cooperative/rural banks cooperatives, non-government organizations (NGOs) and other people’s organizations that pass credit evaluation of PCFC.

Types of Financing Facilities: Agri-Fishery Microfinancing – Credit funds for re-lending to eligible sub borrowers to finance their income generating agri and agri-related activities.

Financing Terms:
Credit Limits: Depends on the MFI’s absorptive capacity, work plan, and target areas to be covered, number of outreach, estimated credit needs and target portfolio. Up to a maximum of P10 million per MFI.
Interest Rates: 10% – 12% per annum for all types of organizations/institutions
Loan Maturity: Maximum of 4 years.
Mode of Payment: Principal and interest: Quarterly
Security/Collateral : Assignment of sub-borrowers’ Promissory Notes and other underlying collaterals/guarantee cover.


Agri-Fishery Microfinancing – Household heads, spouses or adult working members of small farming/fishing households in El Niño and calamity stricken areas. Only one member per household is qualified to borrow at a single time under the project.

Loan Facilities:Agri-Fishery Microfinancing – Loans shall be used to support any or a combination of farm, off-farm/non-farm income generating activities.

Financing Terms:

Credit Limits :

Agri-Fishery Microfinancing – Up to a maximum of PhP150,000.00 per sub-borrower. Interest Rate – The applicable interest rate shall be based on the prevailing interest rates of the conduit organizations/institutions.

Loan Maturity and Mode of Payment: Agri-Fishery Microfinancing: Maximum of one (1) year. The amortization schedule shall be based on the household’s cash flow. At least 20% of the loan should be amortized either weekly or monthly and the remaining balance to be paid upon loan maturity.
Security – Any or a combination of the following: Deed of assignment of acquired assets (i.e. equipment, vehicles, etc.); Joint and Several Signatures; Issuance of post-dated checks;  Marketing Agreement (if applicable); and/or Any other acceptable form of collateral/security

DEPARTMENT OF AGRICULTURE – AGRICULTURAL CREDIT POLICY COUNCIL 28th Floor, One San Miguel Avenue Building, San Miguel Avenue Ortigas Center, 1605 Pasig City

2. Cooperatives Agri-Lending Program (CALP)

Program Features:
Eligible as retailer-institutions are viable stable cooperative banks and cooperatives.
Type of Loan: Credit line
Amount of Loan: Based on the amount established and proposed by retailer and approved by DBP.
Availability Period: The loan shall be available for a period of one (1) year from signing of the Subsidiary Loan Agreement between DBP and the borrower-retailer.
Interest Rate: One year Philippine Dealing System Treasury Fixing Reference Rate (PDSTF) prevailing at the time of drawdown plus 2% administration cost, and plus spread of 1% to 6% depending on the PESO or COOP PESOS Rating of the borrower-retailer.
Collateral: The loan shall be secured by any or a combination of the following: § Assignment of PNs; § Assignment of Real Estate and/or other types of insurance or government guarantees; § Assignment of receivables; and/or § Assignment of Post-dated Checks.

Eligible sub-borrowers are *small farmers/fisherfolk and/or their household members. * Small farmers are defined as those tilling not more than 7 hectares of land and/or are engaged as backyard poultry/livestock raisers; or, agricultural workers in farm. Small fisherfolk refer to those operating fishing vessels of not more than 3 tons capacity; those operating fishponds of less than 5 hectares of fish cages of less than 400 square meters; fish workers in fishing boats, fishponds or fish processing establishments; or, any other individuals who are engaged in small scale fish production, processing and distribution.

Loan Facilities:
Agricultural Production Loans – Production loans refer to financing of projects/activities related to the production of crops, livestock, poultry, fishery products.

Agricultural Microfinance Loans – Agricultural microfinance loans refer to financing of farm, off-farm/non-farm activities of agricultural households using household cash flow lending approach.

Terms and Conditions of Loans of Retailers to Sub-Borrowers: Retailers shall adopt their existing lending policies and guidelines provided that the following basic program policies as to eligible borrowers and projects financed are adhered in using loan funds sourced from the CALP. Interest charges to borrowers shall be based on the retailer’s existing policies.

Other Terms and Conditions: DBP shall adopt its existing lending policies and guidelines in the evaluation and approval of eligible retailers including among others risk acceptance criteria of prospective retailer-borrowers, credit line determination, loan amounts and loan collateral/securities provided however that eligible retailers are cooperative banks and cooperatives. Among others, part of the minimum risk acceptance criteria is that a retailer must have existing agricultural lending or agricultural microfinance program with satisfactory performance. Further, DBP shall adhere to CALP priorities in terms of geographic areas and commodities. Retailers operating in DA-DAR-DENR convergence areas shall be prioritized.