Credit Program

LBP

Credit Program – LBP

LBP

RA 11524

CFIDP 2024–2028

₱40K

Confinement Bill Coverage

₱10K

Death Benefit

₱5K

Outpatient Care Support

14

Regional Offices

— OVERVIEW

Program Description

The CFIDP Credit Program addresses the limited access of small coconut farmers to formal credit. LBP carry out responsive credit delivery with a demand-driven approach, giving priority to convergence areas identified by PCA in consultation with LGUs.

REVISED CFIDP 2024-2028 KEY CHANGE: Loan facilities now accommodate SMALLER loan amounts (below Php 1M for LBP; below Php 15M for DBP) to be more accessible to small-scale farmers.

— COMPONENTS

Interventions / Package of Assistance

Eligible Loan Purposes

● Production-related activities in the coconut value chain
● Processing and trading of coconut products
● Establishment of intercrops (coffee, cacao) in coconut farms
● Poultry/livestock/aquaculture integration in coconut farms
● On-lending and rediscounting to individual coconut farmers
● Relending – for coconut farm inputs (fertilizers, pesticides, tools, materials)

Loanable Amounts And Interest Rates

● Individual farmers (LBP): Minimum Php 50,000 and up to 90% of total project cost
● Coconut-based enterprises, cooperatives, organizations (DBP): Minimum Php 15M (PCA-accredited)
● Direct loans: 2% interest rate per annum
● Relending/Rediscounting: No interest from CFITF; pass-on rate to sub-borrowers shall not exceed 6% per annum (including all fees and charges)
● Cooperatives/organizations for relending or project financing: Up to 90% of total project cost
● Rediscounting: Maximum of 90% of face value of sub-promissory note or current outstanding balance, whichever is lower

Sustainability

Loan collections from CFITF Program Funds are used for relending to qualified borrowers (revolving credit lines). Subject to mandatory review after five (5) years.

— Eligibility

Who Can Avail?

Individual NCFRS-registered coconut farmers

DTI or SEC-registered coconut farmer enterprises

SEC-registered farmers’ organizations

CDA-registered cooperatives (for relending to members)

— DOCUMENTARY REQUIREMENTS

For Individual farmers

NCFRS-registered

Owning/tilling coconut farmland of not more than 5 hectares

With Certificate of Training related to the project to be financed

With viable project

With marketable surplus of the project or other confirmed sources of repayment

For Coconut Farmers’ Organizations / Cooperatives (CFOs/CFCs)

Duly registered with CDA/SEC

No adverse findings on the organization and its principals

Strong back-office support with defined Operational Structure

Profitable operations and sound financial condition

Past Due Loan Ratio not exceeding 25%

Certificate of Compliance from CDA (if applicable)

Received training on financial literacy and technical training on any aspect of the coconut value chain

— How to Apply

Where to File or Send Request

Apply at the nearest LBP branch, or coordinate through PCA Regional Offices. LBP participate in National/Regional Inter-Agency Technical Committee (RIATC/NIATC) meetings for coordination.

LBP – CFIDP Focal Person:
Focal Person: Danilo D. Crobalde
Email:ddcrobalde@landbank.com
Tel: 8522-0000 loc. 7450

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