Implementing Guidelines of the PCFC Expanded Agricultural Microfinance Program (AMP)

November 12, 2014

JOINT DBM-PCFC CIRCULAR NO. 01-14

 

I. Background and Rationale

Chapter 3 on Competitive Industry and Service Sectors of Philippine Development Plan (PDP), cites that Government Financial Institutions such as the People's Credit and Finance Corporation (PCFC), Land Bank of the Philippines (Landbank), and the Small Business Corporation (SBC) — the main wholesale finance institutions catering to microfinance institutions (MFIs) — shall collaborate with the Department of Trade and Industry (DTI), Department of Tourism (DOT) and viable MFIs in developing innovative market-based financing schemes to support microenterprises. Government will collaborate with MFIs to use microfinance as a tool for inclusive growth by expanding access by microenterprises and poor households to credit, savings, and other financial services.

Pursuant to the Special Provision of the PCFC budget under the FY 2014 General Appropriations Act (Republic Act No. 10633), these implementing guidelines are issued by the PCFC and Department of Budget and Management (DBM) in relation to PCFC's delivery of microfinance services for the exclusive use of the poor to uplift their economic status.

II. Program Objectives

1. To align PCFC's microfinance efforts with the current administration's social contract under PDP designed to achieve poverty reduction, social equity and sustainable development.

2. To increase access of small farmers and fisherfolks to financial services which shall be implemented in partnership with existing partner MFIs and other eligible conduits for agri-based livelihood projects and other income generating activities.

III. Acronyms and Definition of Terms

1. AGFP — Agricultural Guarantee Fund Pool — a DA-led program which aims to mitigate risks involved in agricultural lending. It is a fund pool for providing guarantee coverage for unsecured loans of small farmers engaged in rice and other food production.

2. Agricultural Microfinance — Refers to wholesale microfinance loans that shall be used for financing agri-fishery projects and/or other income generating activities of eligible sub-borrowers.

3. AMP — Agricultural Microfinance Program.

4. BorrowerOrganizations — Partner-microfinance institutions of PCFC.

5. COB — Corporate Operating Budget — consists of estimates of revenues, borrowings and expenditures prepared prior to the beginning of the fiscal year and recommended by the Governing Board of GOCCs for consideration and final approval of the President/DBM.

6. DA — Department of Agriculture — a government agency responsible for the promotion of agricultural development by providing the policy framework, public investments, and support services needed for domestic and export-oriented business enterprises.

7. GAA — General Appropriations Act — the law setting the operating budget of the Republic of the Philippines for a particular year.

8. HIRAM — Helping Individuals Reach their Aspirations through Microfinance — a PCFC program to finance the livelihood projects of sub-borrowers.

9. IEC — Information, Education, and Communication materials regarding PCFC's Agricultural Microfinance Program and other lending facilities to be disseminated to eligible Borrower Organizations/MFIs.

10. Landbank — Land Bank of the Philippines — a government financial institution with a dual function of promoting countryside development while remaining financially viable.

11. MIS — Management Information System — a system to track the progress of program implementation as well as generate feedback from the field level regarding the program. CTcSIA

12. MFI — Microfinance Institution — a financial institution specializing in banking services for low-income groups or individuals. A microfinance institution provides account services to small-balance accounts that would not normally be accepted by traditional banks, and offers transaction services for amounts that may be smaller than the average transaction fees charged by mainstream financial institutions.

13. MDP — Monthly Disbursement Program — The estimated monthly disbursement requirements of the operating units of departments/agencies.

14. NAPC — National Anti-Poverty Commission — a government agency that coordinates poverty reduction programs by national and local governments and ensures that marginalized sectors participate in government decision-making processes.

15. NDRRMC — National Disaster Risk Reduction and Management Council — the agency responsible for ensuring the protection and welfare of the people during disasters or emergencies.

16. PCIC — Philippine Crop Insurance Corporation — an agricultural insurer committed to help stabilize the income of agricultural producers and promote the flow of credit in the countryside.

17. PCFC — People's Credit and Finance Corporation — lead government entity specifically tasked to mobilize resources for microfinance services for the exclusive use of the poor.

18. PDCs — Post-Dated Checks — which form part of the security requirement for wholesale loans under the program.

19. PDP — Philippine Development Plan 2011-2016 — adopts a framework of inclusive growth, which is high growth that is sustained, generates mass employment, and reduces poverty.

20. PN — Promissory Note — A signed document containing a written promise to pay a stated sum to a specified person or the bearer at a specified date or on demand.

21. PSA — Philippine Statistics Authority — serves as the central statistical authority of the Philippine government on primary data collection. It is primarily responsible for all national censuses and surveys, sectoral statistics, consolidation of selected administrative recording systems and compilation of national accounts.

22. RSBSA — Registry System for Basic Sectors in Agriculture refer to an electronic compilation of basic information on farmers, farm laborers and fishermen, the target beneficiaries of agriculture-related programs and services.

23. SFF — Small farmers and fisherfolks.

 Small farmers —

a). those cultivating not more than five hectares of land and/or are engaged as small poultry/livestock raisers defined as those raising not more than the following:

- poultry — 1,000 poultry layers or 5,000 broilers

- swine — 10 sow level or 20 fatteners

- cattle — 10 fatteners or 5 breeders

- dairy — 10 milking cows

- goat — 50 heads

b). agricultural workers in farms

 Small fisherfolks —

a) those operating fishing vessels of not more than three (3) tons capacity;

b) those operating fishponds of less than five (5) or fish cages of less than 400 sq.m.;

c) fish workers in fishing boats, fishponds, or fish processing establishments; or

d) any other individuals who are engaged in small scale fish production, processing and distribution.

24. SFF Household Member — Refers to any of the following:

a. Spouse of a SFF;

b. Son or daughter of a SFF who are of legal age; and,

c. Father or mother of a SFF.

25. Sub-borrowers — Refer to small farmers and fisherfolks.

26. Sub-loans — Loans of sub-borrowers.

27. Wholesale Loans — Refer to loans provided by PCFC to MFIs.

IV. Program Geographic Coverage and Target Clients

The Program shall be implemented in all provinces, with particular focus on those with high incidence of poverty, other calamity stricken areas identified by DA, NDRRMC, PSA, as well as provinces with farmers and fisherfolk registered under the RSBSA. HSDaTC

V. The Program Fund

Funds for AMP shall be sourced from the FY 2014 National Government subsidy to PCFC amounting to One Billion Five Hundred Sixty Three Million Five Hundred Seventy Two Thousand Pesos (Php1,563,572,000) for the delivery of microfinance services exclusively to the poor. This amount shall augment PCFC's corporate funds in order to benefit a larger number of beneficiaries availing of the Program.

No portion of this amount shall be used for investments in Treasury Bills, dollar placements and other instruments not directly related to this lending program.

VI. General Policies and Guidelines

1. NG subsidy to PCFC for the purpose shall be deposited by PCFC to its HIRAM Collection Fund maintained at the Landbank-Buendia Branch. All collections from the MFI borrower shall likewise be deposited in the said account.

2. The funds shall be made available for lending to the eligible MFIs, who shall in turn, relend the funds to eligible farmers and fisherfolks listed in the RSBSA, and other subsistence farmers and fisherfolks duly certified by the Municipality/City Agriculturist of the Local Government Unit.

3. PCFC may charge administrative costs directly related to the implementation of the program at not more than three percent (3%).

4. Collections from eligible MFIs, also known as "2nd generation fund", shall be utilized by PCFC as follows:

a. Continuous implementation of AMP;

b. Administrative costs directly related to the implementation of the program at three percent (3%);

VII. Responsibilities of DBM and PCFC

DBM shall:

1. Based on the submitted special budget request, release the Special Release Allotment Order (SARO) amounting to P1,563,572,000 through the BTr, for PCFC's implementation of the AMP. The corresponding Notice of Cash Allocation (NCA) shall be released based on the Monthly Disbursement Program (MDP) submitted by PCFC. Subsequent request for NCA releases shall be supported with a progress report on the financed programs/projects and loan availments of MFIs or accomplishment of PCFC;

2. Ensure that in the review of the FY 2014 Corporate Operating Budget of PCFC, the amount of P1,563,572,000 is included among the fund sources of PCFC for the Program;

3. Record the aforementioned subsidy release to PCFC as equity contribution of the national government in the event that PCFC's authorized capitalization is increased by law;

4. Require the submission by PCFC of a Quarterly Status Report showing the list of MFIs and amount disbursed to them, as well as the number of farmers and fisherfolk who availed of the loan; and 

5. Engage the PCFC to conduct an impact assessment of the AMP two (2) years after its implementation.

PCFC shall:

1. Implement the AMP, including program marketing, credit assessment and delivery, and accounts supervision, in accordance with policies and procedures described in this implementing guidelines;

2. Evaluate, process, and approve loan applications of MFIs and release funds to the latter in accordance with PCFC's existing lending guidelines and consistent with the provisions of this guidelines;

3. Ensure availability and profitable utilization of funds;

4. Collect loan repayments from borrowers of the credit funds;

5. Conduct monitoring of fund disbursements against program funds as well as loan collections;

6. Maintain a Management Information System (MIS) and prepare quarterly reports on the status of fund disbursements and balances for submission to the DBM;

7. Ensure that funds lent to the MFIs shall directly benefit small farmers and fisherfolks registered under the RSBSA; and

8. Download funds to MFIs with good credit standing. In case MFIs fail to remit collections as scheduled without justifiable reasons (i.e., typhoons or calamities), PCFC shall demand payment of loans in full, including interest and surcharges. Said MFIs shall no longer be eligible to avail of loans under this program. DaEcTC

VIII. Program Lending Guidelines

1. The following guidelines shall govern the AMP:

Parameters		PCFC			MFI
Eligible	Accredited MFIs:	Small farmers and fisherfolks registered
Borrowers	-	Non-Government	in the RSBSA of all provinces, their
		Organizations;	household members and other
	-	Cooperatives: Banks (Rural,	subsistence farmers and fisherfolks who
		Cooperative, Microfinance,	are not listed in the RSBSA but duly
		Thrift, SME, & others); and	certified as such by the Municipality/City
	-	People's Organizations	Agriculturist of the Local Government
			Unit
Loan Purpose	Wholesale loans to finance	-	Agrifishery Microfinance Loan — to
	the MFIs relending programs		finance any or combination of new
	on agricultural microfinance		farm, off-farm/non-farm income
				generating activities (production,
				processing and/or trading of
				crops/commodities) and/or refinance
				the rehabilitation of existing agri-fishery
				projects which have been affected by
				calamities;
			-	Value Chain Financing Facility — loans
				availed by the borrower-group shall be
				used for the following purposes:
				a.	working capital to finance any of the
					value chain activities (i.e.,
					processing and/or marketing); and
				b.	acquisition of assets of an agri-enterprise
					or agri-business projects that are
					engaged in agri-fishery product
					marketing or agri-fishery inputs trading.
					(Provided that such projects have direct
					forward or backward link with small
					farmers/fisherfolk)
			-	Asset Acquisition Loan — loans availed
				shall be used for the acquisition of farm
				machinery and equipment (i.e., water pump,
				shallow tube well, thresher, fishing boats,
				etc.)
			-	Microfinance Loan — for livelihood projects
				and other loans (i.e., small-scale house repair
				and/or improvement and expansion, solar
				home system, etc.) upon eligibility of the
				borrowers subject to the lending policies and
				guidelines of the MFI.
Loan Amount	Based on credit evaluation	In accordance with MFI's credit policies
	but not to exceed the Single	and end-client's repayment capacity
	Borrower's Limit (SBL)	(cash flow) but shall not go beyond
	inclusive of the other credit	P300,000 inclusive of end-clients other
	facilities of the MFI.	loans with the MFI.
Loan Term	Up to four (4) years PN	Based on MFI's credit policies and
	inclusive of six (6) months	guidelines
	grace period on principal
	payments for PNs with term
	of two (2) years or more.
Interest Rate/	Based on credit evaluation-	Based on MFI's credit policies and
Service Charge	interest rates ranging from	guidelines — interest rates of not more
	3.5% to 6.5% per annum.	than 18% per annum.
Mode of	Quarterly amortization of	Based on MFI's credit policies and
Payment	principal and interest.	guidelines (i.e., weekly, monthly,
			quarterly)
Security	PDCs; Deed of Assignment of	Based on MFI's credit policies and
Requirement	sub-borrowers; PNs and all	guidelines.
	underlying collaterals and
	credit guarantee/insurance
	proceeds.

 

2. Guarantee/Insurance Coverage

 MFIs shall be encouraged to enroll their agri-fishery production projects for coverage under AGFP and the appropriate insurance facilities of PCIC. The guarantee proceeds and risk premium shall be assigned to PCFC for wholesale loans availed under the program.

IX. PCFC's MFI Directory and Accreditation Criteria

Annex A shows the listing of 68 MFIs located nationwide that have been duly accredited by the PCFC and Annex B enumerates PCFC's accreditation criteria for MFIs that may be interested to join the Program.

X. Monitoring and Evaluation

A program monitoring and evaluation system shall be established by PCFC to track the progress of program implementation as well as generate feedback from the field level regarding the efficiency and effectiveness of the program.

The monitoring and evaluation system shall include the following:

1. Preparation and submission of quarterly reports to the DBM on the status of loan disbursements, repayments, program fund balances, and financed projects of sub-borrowers, including list of RSBSA borrowers/beneficiaries and their addresses and contact numbers.

2. Conduct of field monitoring visits to ascertain the program outputs/accomplishments, gather feedbacks from field implementers, and identify bottlenecks. These visits also ascertain compliance of program implementers to approved policies and guidelines as well as gather data on the accomplishment of program outcomes.

XI. Effectivity

This Joint Circular shall take effect immediately upon its publication in the Official Gazette or in a newspaper of general circulation.

(SGD.) EDGAR V. GENEROSOPresident and CEO

(SGD.) FLORENCIO B. ABADSecretary

ANNEX A

PCFC MFI Directory
No.	MFI	Address	Contact No.	Email	Website
					Address
North and Central Luzon
1	Agribusiness	B. Aquino, National Highway, Poblacion	(078)	[email protected]	www.agribank.
	Rural Bank, Inc.	South, Solano, Nueva Vizcaya	652.2964/634.5512	ap.org	com.ph
2	Alalay sa	105 Maharlika Highway, Cabanatuan	(044)	[email protected]	www.aski.com.ph
	Kaunlaran, Inc.	City, Nueva Ecija	463.5779/463.5780
3	Cooperative Bank	JC 225 Central Pico, La Trinidad 2601	(074)	www.cbbenguet.com
	of Benguet	Benguet	422.1268/422.2469
4	Cooperative Bank	Diversion Rd., San Gabriel,	(078)	[email protected]
	of Cagayan	Tuguegarao City, Cagayan	844.1985/844.3432	ap.org
5	Gateway Rural	23 Mc Arthur Highway, Wawa, Balagtas	(044)	[email protected]	www.gatewayrb.
	Bank, Inc.	3016 Bulacan	693.3451/693.3452	com	com
6	GM Bank of	Maharlika Highway, Brgy. Dimasalang,	(044)		www.gmbank.
	Luzon, Inc.	Cabanatuan City 3100 Nueva Ecija	940.6000/600.6000		com.ph
7	Kazama	Lot 25 Blk. 12, Sta. Monica Subd.,	(047)	[email protected]	www.kazamag
	Grameen, Inc.	Subic 2209 Zambales	232.4216/232.1871	yahoo.com	rameen.org
8	Kilusang Lima	Maharlika Highway, Maestrang Kikay	(044) 940.5976
	Para sa Lahat	District, Talavera, Nueva Ecija
	Multi-Purpose
	Cooperative
9	Mallig Plains	Centro II, Mallig, Isabela	(078)		[email protected]
	Rural Bank		642.8815/642.8805		com
	(Isabela), Inc.
10	Nueva Segovia	Socio-Pastoral Center, Nueva Segovia	(077)	[email protected]	www.coopnscc.
	Consortium of	St., Vigan City, Ilocos Sur	722.3029/722.1351	com	com
	Cooperatives
11	Philippine	Alingog Center, Rizal Ave. cor.	(078)	[email protected]	www.prsavings
	Resources	CanciIler Avenue, Cauayan City,	652.1308/652.2393		bank.com.ph
	Savings Banking	Isabela
	Corporation
12	Providence	Dugo, Camalaniugan 3510 Cagayan	(078)	[email protected]
	Rural Bank, Inc.		854.4905/854.2014	yahoo.com
13	Rangtay sa	11 Leonard Wood Road, Teacher's	(074) 445.3592	[email protected]	www.rspi.com.ph
	Pagrang-ay, Inc.	Camp 2600 Baguio City
14	Sacred Heart	Poblacion, Galimuyod, Ilocos Sur	(077)
	Savings		644.0529/674.0542
	Cooperative
Metro Manila and South Luzon
1	Ahon sa Hirap, Inc.	No. 76 8th Avenue, Cubao 1109	(02) 913.2452/(02)	[email protected]	www.ashi.org.ph
		Quezon City	912.0688	manila.com.ph
2	ARDCI NGO	Former Chinese School Bldg., Sta.	(052) 811.3288	[email protected]	www.ardci.com
	Group, Inc.	Elena, Virac, Catanduanes		yahoo.com
3	Banco Alabang, Inc.	GF Minerva Bldg., National Rd.,	(02)	[email protected]
		Putatan, Muntinlupa City	862.0043/862.0045	com
4	Barangka Credit	170 Gen. Julian Cruz St., Barangka,	(02)	[email protected]	www.barangka
	Cooperative	Marikina City	369.7890/475.0044	yahoo.com	coop.com
5	CARD Bank, Inc.	20 M.L. Quezon St., City Subd., San	(049)	[email protected]	www.cardbank
		Pablo City, Laguna	562.4309/562.6560	ph.com	ph.com
6	Center for	20 M.L. Quezon St., City Subd., San	(049)	[email protected]	www.cardbank
	Agriculture and	Pablo City, Laguna	562.7772/562.4181	ph.com	ph.com
	Rural Development,
	Inc.
7	JM Honrado	Lovito St., Ilawod 2, Daraga, Albay	(056)	[email protected]	www.jmhfi.com
	Foundation, Inc.		421.6321/483.4567	com
8	KADRE Community	158-E West Ave., Quezon City	(02) 415.4049	egaymercedes.kcdi
	Development, Inc.			@gmail.com
9	Kasagana-Ka	No. 5 Don Francisco St., Don Enrique	(02) 931.4335	[email protected]
	Development	Heights, Commonwealth Ave., Quezon		com
	Center, Inc.	City
10	Mount Carmel	J.M. Kalaw St., Lipa City, Batangas	(043)	[email protected]
	Rural Bank, Inc.		756.4341/981.2220	org.ph
11	Radiowealth	7 & 8F DMG Center, DM Guevarra St.	(02) 571.4401 to 05	www.rfc.guevent.ph
	Finance	cor. Calbayog Ext., Mandaluyong City
	Company, Inc.
12	Rural Bank of	2F Camalig Bank Bldg., 114 Peñaranda	(052)	[email protected]	www.camalig
	Camalig	St., Legazpi City, Albay	484.1001/484.1002	gmail.com	bank.com.ph
	(Albay), Inc.
13	Rural Bank of	Mabini St., Guinobatan 4503 Albay	(052)	[email protected]	www.rbguinob
	Guinobatan, Inc.		484.6439/484.6510	yahoo.com.ph	atan.com
14	Rural Bank of	J.P. Rizal St., Mabitac 4020 Laguna	(049)	[email protected]
	Mabitac		504.3674/501.0884	com
	(Laguna), Inc.
15	Saklaw	National Highway, Calero, Calapan City	(043) 288.3470	[email protected]	www.sfidevelo
	Foundation, Inc.	5200 Oriental Mindoro		com	pment.com
16	Simbag sa	3F Social Action Center, Cathedral	(052)	[email protected]
	Pag-asenso, Inc.	Compound, Old Albay District, Legazpi	481.4449/481.5746	.com
		City, Albay
17	Vision Bank, Inc.	Poblacion Libod, Bato, Catanduanes	(052)	[email protected]
			811.0740/0917.582.	com
			4144
Visayas
1	Bontoc Multi-	Gomez St., Poblacion, Bontoc,	(053)	[email protected]
	Purpose	Southern Leyte	382.3008/382.3097
	Cooperative
2	Cebu Caritas,	Caritas Bldg., P. Gomez St., Cebu City	(032) 256.3176	[email protected]
	Inc.-Cebu			com
	Archdiocese
	Program for Self
	Reliance
	(CAPS-R)
3	Community	Sarabia-Co-Toralba Bldg. II, Espuelas	(038) 501.0170		www.cevi.org.
	Economic	St., Tagbilaran City 6300 Bohol			ph
	Ventures, Inc.
4	Dungganon Bank	NWTF Building, 102 San Sebastian cor.	(034)
	(A Microfinance	Verbena Sts., Bacolod City 6100	432.3718/432.3719
	Thrift Bank),	Negros Occidental
	Inc.
5	Fatima Multi-	Poblacion, Calubian, Leyte	(053) 549.2267	[email protected]
	Purpose			yahoo.com
	Cooperative
6	First Agro-	Dela Viña cor. J. Lequin Sts., Gairan,	(032)	[email protected]	www.fairbank.
	Industrial Rural	Bogo City 6010 Cebu	434.8848/437.8346		com.ph
	Bank, Inc.
7	Gabay sa	Poblacion, San Remigio 6011 Cebu
	Kalamboan Micro
	Finance
	Cooperative
8	Metro Ormoc	OCCCI Bldg., Arradaza St., Ormoc City	(053)	[email protected]	www.occci.
	Community	6541 Leyte	561.0040/255.4612	yahoo.com	coop
	Cooperative
9	Negros Women for	102 San Sebastian cor. Verbena Sts.	(034)	[email protected]	www.nwtf.org.
	Tomorrow	6100 Bacolod City	432.3718/432.3719		ph
	Foundation, Inc.
10	Northern Samar	Pres. Roxas St., Catarman, Northern	(055) 251.8506	[email protected]
	Development	Samar
	Workers
	Community
	Cooperative
11	Progressive	Del Rosario St., Balasan 5018 Iloilo	(033)	[email protected]
	Bank, Inc.		397.0513/397.1021	com
12	Samar Center	97 Jacinto St., Brgy. Yakal, Catarman,	(055) 500.9109	[email protected]	www.sacred
	for Rural	Northern Samar		yahoo.com	main.webs.com
	Education and
	Development,
	Inc.
13	Southern Leyte	SLEMCOOP Building, National	(053)	[email protected]
	Employees	Highway, Brgy. Asuncion, Maasin City	381.2362/570.9622	com
	Multi-Purpose	6600 Southern Leyte
	Cooperative
14	Taytay sa	National Highway, Brgy. Mali-ao, Pavia,	(033)	[email protected]	www.tski.com.ph
	Kauswagan, Inc.	Iloilo	329.5547/329.3958
15	Ugyon	Brgy. Lawa-an, Roxas City, Capiz	(036)	[email protected]	www.ugyon
	Foundation, Inc.		621.5857/621.1638		foundation.blogs
					pot.com
16	Uswag Development	L. Barrios St., Kalibo, Aklan	(036)
	Foundation, Inc.		262.3059/262.5140
Mindanao
1	1st Valley	Poblacion, Baroy, Lanao del Norte	(063)	[email protected]	www.1stvalley
	Bank, Inc.		498.0251/373.6334	com	bank.com
2	Ad Jesum	Clergy House Compound, Madang,	(087) 811.2292	[email protected]
	Development	Mati 8200 Davao Oriental
	Foundation, Inc.
3	Baba's	Km. 6, Diversion Rd., Buhangin 8000	(082)	babasfoundation_p	www.babasfo
	Foundation, Inc.	Davao City	300.5640/241.1596	[email protected]	undation.org
4	Bukidnon	San Victores St., Malaybalay City,	(088)	[email protected]
	Cooperative Bank	Bukidnon	221.4514/356.1561
5	Cantilan Bank, Inc.	Orozco St., Brgy. Magosilom, Cantilan,	(086)	[email protected]	www.cantilanb
		Surigao del Sur	212.5055/211.3053	com	ank.com
6	Cooperative Bank	Lanao, Kidapawan 9400 North	(064)	coopbankcotabato
	of Cotabato	Cotabato	278.3264/288.1592	@rbap.org
7	Cooperative	CBMO Bldg., Antonio Luna St.,	(088)	[email protected]	www.coopban
	Bank of Misamis	Cagayan de Oro City	856.1550/726.365	ap.org	kmisor.com
	Oriental
8	D' Asian Hills	D' AHBI Corporate Centre, Fortich St.,	(088)	[email protected]
	Bank, Inc.	Malaybalay City 8700 Bukidnon	221.4697/813.3990	yahoo.com
9	Enterprise	Poblacion, Lianga, Surigao del Sur	(082)	[email protected]	www.enterprise
	Bank, Inc.		228.6986/225.8892	yahoo.com	bank.ph
10	Hagdan sa	RER II, National Highway, Cagayan de	(088)	[email protected]
	Pag-uswag	Oro City	858.3998/858.4623
	Foundation, Inc.
11	Holy Community	027 F. Lacaya St., Biasong, Dipolog	(065)	[email protected]
	Development	City, Zamboanga del Norte	906.0225/212.2525
	Foundation,
	Inc.
12	Microfinance	EBI Building, Km. 5, Buhangin 8000	(082) 300.4042
	for Rural	Davao City
	Development, Inc.
13	Katipunan Bank	Quezon Ave. cor. Aguilar St., Dipolog	(065)	[email protected]	www.katipunan
	(ZN), Inc.	City, Zamboanga del Norte	212.7647/212.9109	punanbank.com	bank.com
14	KFI Center for	GF KCCDFI Bldg., MCLL Highway,	(062)	[email protected]
	Community	Guiwan, Zamboanga City	991.9348/993.0481
	Development
	Foundation,
	Inc.
15	KPS-SEED, Inc.	Lio Earl St., QueeNies LOve Village,	(083) 301.9041	[email protected]	www.kps-
		Brgy. City Heights 9500 General Santos		yahoo.com	seed.org
		City
16	Micro-Entre	Door 2 and 3, Nationwide Appliance	(062) 992.6847	[email protected]
	preneurs' Multi-	Bldg., Veterans Ave., Zamboanga City
	Purpose
	Cooperative
17	Paglaum Multi-	2F PMPC Bldg., Eastern Looc, Plaridel	(088) 344.8633	[email protected]	www.paglaum
	Purpose	7209 Misamis Occidental		yahoo.com	coop.org.ph
	Cooperative
18	Peoples Bank	National Highway. Brgy. 5, San	(085)	[email protected]
	of Caraga, Inc.	Francisco, Agusan del Sur	839.1445/343.8529
19	RBT Bank, Inc.	Rizal St., Poblacion, Talisayan 9012	(088) 387.3702	[email protected]	www.rbtbank.
		Misamis Oriental		com	com
20	South Cotabato	Arellano St. Brgy. Zone III, Koronadal	(083) 228.2687	[email protected]
	Foundation, Inc.	City, South Cotabato		com
21	Surigao Economic	0078 SEDFI Bldg., M. Ortiz St., Kaskag,	(086)	[email protected]
	Development	Surigao City, Surigao del Norte	231.7491/826.4446
	Foundation,
	Inc.

 

ANNEX B

PCFC Accreditation Criteria
Institutional Criteria
Legal Personality	Duly registered
Track Record	At least 3 years lending experience or majority of directors/officers
		have at least 3 years experience in lending with 1 year in microfinance
Board of Directors	Competent and qualified as Director under the law and pertinent
		regulations
Core Management Team	Presence of full-time Head, Auditor, Cashier and Bookkeeper
Microfinance Lending Group	Willing to put a separate unit for the program with full-time staff
Staff Development	Presence of staff development program including basic microfinance
		and credit and financial management
Operating Systems	Presence of MIS, Accounting and Internal Control Systems
Results of Credit and Background	No adverse findings on the MFI;
Investigation	No past due loans and derogatory records on key officers
Operational and Financial Criteria
A.	Over-All Operations
Total Resources	At least P5.00 Mn resources;
		In case of decrease, it should not be more than 5% per year
Net Worth/Fund Balance	At least P2.000 Mn
Liquidity
	Liquid Ratio	Not less than 25%
	Current Ratio	At least 1.5:1
Leverage
	Capital/Fund
	Balance-to-Risk	At least 10% after PCFC and other creditors
	Assets Ratio
	Bills Payable	Not to exceed 70%
	to Total Liabilities
Portfolio Quality
	Past Due Rate	Not more than 15% net of valuation reserves for over-all operations
	Loan Valuation	100% compliance based on standards
	Reserves
Profitability
	Net Income	Profitable for the last 3 years
B.	Microfinance Operations
Outreach	At least 500 existing borrowers
Savings Mobilization	Presence of savings mobilization program
Capability-Building Intervention	None Required
Portfolio Quality
	Portfolio-at-
	Risk Rate 1-	Not more than 5%
	Day (PAR 1)
	Loan Valuation	100% compliance based on standards
	Reserves
	Collection Rate	Annual collection rate of at least 95%
Profitability
	Net Income	Profitable microfinance operation before and after grants
	(Before and After Grants)
Performance Ratings
NCC PESO Rating	At least 70%
CAMELS Rating	At least 3

 

Published in The Philippine Star on November 24, 2014.