AGRICULTURAL LOANS

Agrarian Reform Loans

A. AGRARIAN REFORM LOANS  – This refers to the amortized cost of production and other types of loans granted to beneficiaries of agrarian reform, namely: tillers, tenant farmers, settlers, agricultural lessees, amortizing owners, owner-cultivators, cooperatives and compact farms, for the following purposes:

• Acquisition of work animals, farm equipment and machinery, seeds, fertilizers, poultry, livestock, feeds and other similar items;
• Acquisition of land authorized under the Agrarian Reform code of the Philippines and its amendments;
• Construction and/or acquisition of facilities for production, processing, storage and marketing;
• Efficient and effective merchandising of agricultural commodities stored and/or processed by the previously mentioned facilities in domestic and foreign commerce.

 B. VALUE CHAIN FINANCING  – The bank has established and continues to formulate policies advancing financial inclusion geared toward providing fiscal opportunities for smallholder farmers and fisherfolk.

Other Agricultural Loans

A. WORKING CAPITAL

A.1 Credit line – These are short term loans to boost inventories and receivables in support of increasing sales, which are repaid from the cash conversion of short-term assets, mostly receivables/inventory.

A.2 Permanent Working Capital – This loan product provides the minimum level of working capital needed to sustain continuous operations for client’s businesses in light of business or financial fluctuations.

◙ Short-term Loan
◙ Medium-term Loan
◙ Long-term Loan

A.3 Fixed Asset Financing Term Loan – This is medium or long-term financing for funding:

 ◙ Equipment and capital asset acquisition secured by the item to be financed;
 ◙ Fixed Asset construction or improvement for business expansion and enhancement secured against bank deposits,real estate or chattel mortgages.

Possible Markets

The Bank provides financing to help farmers, food processors and aquaculture operations adopt new and innovative equipment and facilities in order to improve the manufacturing, marketability and production of agricultural products or through their respective organizations, associations and cooperatives support of their on- and off-farm activities whether these are individual, corporate and/or communal project.

Elligible Borrowers

Prospective clients who may avail of these loan facilities include:

• Individual farmers
• Agrarian Reform beneficiaries organizations and members
• Farmer’s organizations/associations or cooperatives