SMEs, farmers, fisherfolk can borrow up to P1M

SMALL and medium enterprises, farmers and fisherfolk and their cooperatives and associations, can avail themselves of the agricultural lending program to increase their productivity.

This as the Agricultural Competitiveness Enhancement Fund lending program is now accessible through the state-owned Land Bank of the Philippines.

Eligible projects include purchase of farm input and equipment or farm improvement, acquisition/establishment of agri-based production and post-production and processing machineries, equipment and facilities and re-lending to farmers and fisherfolk.

Loans are meant to augment conduit funds for re-lending to agrarian reform beneficiaries/small farm holders (ARBs/SFHs) to finance their livelihood and agri-enterprise projects and boost conduit’s funds for re-lending to member ARBs/SFHs to finance their house or office repairs.

Loan amounts for livelihood/agri-enterprise are up to P1 million per farmer/fisherman, while up to P5 million per project per borrower for farmer and fisherfolk cooperation/association.

These carry an interest rate of six percent per year.

For production, forms of collateral include combination of Philippine Crop Insurance Corp. (PCIC) insurance and/or agricultural guarantee fund pool guarantee coverage, if applicable and assignment of expected produce.

In acquisition of fixed assets, these are any or a combination of chattel mortgage on object of financing, assignment of expected produce and PCIC insurance proceeds.

Loan applicants should submit a business plan about their project containing market research, technical, management, and financial and environmental aspects. (Philexport News and Features)