Lending Program for Cooperatives

Program Title: Cooperative Lending Program
Program Objective: To help augment income, generate more economic activities and transform people’s lives.

Eligible Borrowers:

A.   Agricultural cooperatives – small farmers, fisherfolk, and poultry/ livestock raisers.

B. Non-farmers/credit cooperatives – market vendors, employees, teachers, rural workers, women, etc. – which meet the following criteria:

  • registered with CDA with a minimum of 60 members;
  • minimum paid-up share capital of P30,000.00;
  • all members should have attended Pre-Membership Education Seminar; o core management team composed of qualified full-time treasurer/cashier and qualified full-time bookkeeper and manager;
  • with on-going savings mobilization program resulting to an annual average increase of savings of at least P500.00/member;
  • with on-going capital build-up program resulting in annual incremental equity equivalent to P500.00 per member;
  • with written policies, systems and procedures on membership management, capital build-up and savings mobilization, credit, accounting and budgeting, written plans and programs;
  • with duly installed books of accounts;
  • at least break-even in its operations;
  • must be conducting periodic performance review operations;
  • risk asset ratio of not less than 10%; and
  • past due ratio of not more than 25% for bank assisted cooperatives/ newly accessing cooperatives.
  • Sub-borrowers – individual households, businesses, and microenterprises.

Loan Purposes:

  • Agricultural Production Loan (APL) – provision of short/medium/ long term loans, depending on the gestation period of the crop/ project, for relending to cooperative members engaged in crop production, livestock and poultry raising/breeding, fishery, and aquaculture projects and other agri/aqua-related projects, including cottage industries which utilize excess farm labor.
  • Working Capital Loan (WCL) – for funding cooperative activities requiring operating capital for purchase of raw materials, processing and trading of inputs and/or finished products and the operation of fixed assets.
  • Rediscounting Loan (RL) – improvement of liquidity and provision of capital requirements of eligible / accredited lending agents for funding relending operations using promissory notes of members of cooperatives.
  • Fixed Asset Acquisition (FAL) – purchase of fixed assets to be used in the cooperative’s operation.



  • Depends on the project needs or loan ceilings for traditional and high-value crops which should not exceed 80% of the project cost.
  • For rediscounting – maximum of 85% of face value of the sub-promissory notes (PNs), except for sub-loans under the Innovative Financing Scheme which have 100% loan value on sub-promissory notes.

Interest Rate: Prevailing rate at the time of availment.

Maturity / Repayment:

  • APL/WCL – lump sum depending on crop cycle and/or project cash flow.
  • RL – co-terminus with the maturity dates of batch of sub-promissory notes rediscounted but not exceeding one year.
  • FAL – equal quarterly, semi-annual or annual amortizations depending on the financial projections and production cycle of the project.


a. APL

  • Deed of Assignment of PCIC insurance/guarantee coverage.
  • Deed of Assignment of Produce.
  • Deed of Assignment of Sub-borrowers PNs.

b. WCL and FAL

  • Real Estate/Chattel Mortgage (REM/CM).
  • Mortgage on Objects of Financing.
  • Continuing Mortgage on Stocks.

c. RL

  • Deed of Assignment Sub-borrowers’ PNs including its underlying collaterals.

Other acceptable collaterals:

  • Hold-outs
  • Assignments
  • REM
  • Guarantee Coverage
  • Joint and;
  • Several Signatures (JSS)

Contact Details:

Program Management Department (PMD)
Phone: (02) 522-0000, (02) 551-2200  locals 2650, 2589
Fax: (02) 528-8541/42/43

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