The Agrarian Production Credit Program (APCP) is a program jointly implemented by the Department of Agriculture (DA), the Department of Agrarian Reform (DAR), and the LandBank of the Philippines (LANDBANK). The program caters to Agrarian Reform Beneficiaries (ARBs) whose organizations are not yet eligible to avail of loans from LANBANK. Eligible Agrarian Reform Beneficiary Organizations (ARBOs) avail of loans under the program and in turn re-lend to eligible ARBs to fiance their agri-production projects and activities.
AGRARIAN PRODUCTION CREDIT PROGRAM (APCP)
Aims to achieve sustainable crop production and increase incomes of agrarian reform beneficiaries (ARBs) and their households through the provision of credit and capacity building assistance.
ELIGIBLE BORROWERS
- Agrarian Reform Beneficiary Organizations (ARBOs)
- Farmer Organizations/People’s Organizations other than ARBOs with ARB or ARB household members
- Other conduits such as Cooperatives, NGOs, and rural banks only, with ARB or ARB household members or APCP ineligible ARBOs as clients
ELIGIBLE SUB-BORROWERS
ELIGIBLE PROJECTS
- Agriculture and fisheries production such as, but not limited to, production of corn, sugarcane, coconut, cacao, coffee, livestock, poultry and fishery projects
- Agri-enterprise and livelihood projects such as but not limited to, trading and processing of agricultural crops and commodities
LOAN PURPOSE
- To finance the requirements for agriculture and fisheries, agri-enterprise and/or livelihood projects
TERM OF LOAN
MAXIMUM NO. OF PROJECTS
UP TO THREE (3) PROJECTS PER BORROWER
- Based on the cycle/cash flow of the project but not to exceed seven (7) years with grace period up to three (3) years on the principal
- Semi-Annual/Annual Crops — crops such as but not limited to rice and corn with a production cycle not exceeding 1 year
- Plantation Crops — crops such as but not limited to coffee, cacao, and coconut which may have longer production cycle than 1 year shall have a maximum term of 7 years
- Based on the operating cycle of the project depending on the cash flow
- Based on the project completion, cash flow, and remaining economic useful life of the asset to be acquired, whichever is applicable, but not to exceed 5 years
INTEREST RATE
For Short-Term Loan:
8.5% per annum
For Term Loan:
9.5% per annum
PASS-ON RATE TO END-BORROWERS
For Short-Term Loan:
15% per annum
For Term Loan
16% per annum
PENALTY ON LATE PAYMENT
3% per annum
INCENTIVE
- Interest rebate of 2% per annum based on the principal amount paid provided that the subject loan amortization is paid on time and that the prescribed pass-on rate is adhered to.
COLLATERALS/SECURITIES
- Assignment of Promissory Notes plus underlying collaterals
- Assignment of insurance proceeds/guarantee claims/hold-out on deposit (if any)
- Chattel mortgage as object of financing (if any)
CONTACT INFORMATION
APCP Secretariat (02) 636-3391
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