Initial fund is P1 billion basically preferred for the agriculture sector including for enterprise development, housing, and agribusiness. The facility will be demand-driven at market rates.
DBP president and chief executive officer Reynaldo G. David said this new facility, which is available to microfinance institutions (MFIs) for relending to rural enterprises and farm households, is intended to finance the acquisition of agribusiness technologies and machineries, and other activities related to the semi-processing or processing of grains, fruits, fish, and meat products.
Projects related to the production of agriculture inputs such as organic fertilizers, the procurement of harvest and post-harvest facilities, and other activities that increase farm and off-farm productivity and incomes of micro-entrepreneurs are likewise eligible for support under this microfinance loan.
To qualify, bank and non-bank MFIs including rural banks, thrift banks, cooperative banks, savings and credit cooperatives, and non-government organizations (NGOs) with savings or credit services, must comply with the National Credit Council performance standards for all types of MFIs.
Other support loan facilities are likewise available to MFIs.
A capacity-building facility extends loans at below market rates for institutional strengthening projects and activities to enable MFIs to diversify their product offerings and reach farm and off-farm micro-enterprises. A loan facility for business development is also available for expansion projects of MFIs in the rural areas.
DBP’s microfinance program supports microenterprise development by facilitating the access of poor and low income households to formal credit and banking services to grow their small businesses, and thus enable them to raise income levels and improve their living standards.