Credit Program

DBP

Credit Program – DBP

Coconut Production-related activities

Processing and trading of coconut products

Establishment of intercrops

Poultry/livestock/aquaculture integration

On-lending and rediscounting

Relending – for coconut farm inputs (fertilizers, pesticides, tools, materials)

— OVERVIEW

Program Description

The CFIDP Credit Program addresses the limited access of small coconut farmers to formal credit. DBP 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 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

● 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 Coconut-Based MSMEs

Duly registered with DTI/SEC

PCA-registered coconut-based enterprise

Principal/owner must be PCA-registered

No adverse findings

Strong back-office support with defined Operational Structure

Profitable operations and sound financial condition

Past Due Loan Ratio not exceeding 25%; received financial literacy and technical training on the coconut value chain

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

DBP – CFIDP Focal Person:
Focal Person: Mr. Jericho Martinez
Email: jnmartinez@dbp.ph, pdm2@dbp.ph
Tel: 8818-9511 loc. 2349

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