IGLF Wholesale Lending Batch Financing




PROGRAM DESCRIPTION

    Rediscounting facility for participating financial institutions (FIs) to finance their micro and non-micro loan portfolio and/ or public school teachers’ loans to the extent of 90% of the outstanding principal balance of the loans.


SPECIAL CREDIT WINDOWS

                 
    Credit WindowsTermMaximum Sub-Loan
    Microfinance Up to 2 years, no grace PhP 300,000 per sub-borrower
    Public School Teachers (PST) Up to 2 years,no grace PhP150,000 per sub-borrower
    Non-micro/SMEs - do - PhP100 million


ELIGIBLE BORROWERS

    1. Banks and non-bank Financial Institutions (NBFIs) with approved lines with DBP. NBFIs include MicrofinanceInstitutions (MFIs), Non-Government Organizations (NGOs), financing companies and credit cooperatives.

    2. For PST-funded loans, Financial Institutions should beduly accredited by Department of Education under its Automatic Payroll Deduction System (APDS).


ELIGIBLE SUB-BORROWERS

    Microfinancing
    • Micro enterprises (asset size of up to P3 million & loan size of up to P300,000)
    • MFIs involved in wholesale lending and accreditation of other qualified MFIs
    • SMEs with loan requirement of P300,000 or less
    Non-micro/SMEs
    • Privately owned SMEs with maximum asset size of P200 million
    • At least 60% Filipino owned
    PST Loan Program
    • Teaching & non-teaching personnel of public elementary and high schools



ELIGIBLE PROJECTS

    1. Microfinancing
    Livelihood projects except primary agricultural production without post harvest production activities
    Maximum subloan: P300,000 per enterprise
    2. Non-Microfinance – short term
    • Factoring of receivables
    • Lease financing
    • Other investment undertaking (except primaryagricultural production without post harvest production activities)
    • Short-term working capital
    • Maximum subloan: P100 million per SME
    3. PST Loan Program
    Livelihood purposes and other activities that will generate supplemental income for public school teachers.
    Maximum sub-loan: P150,000 per borrower
    Batch application regardless of number of accounts in a batch
    Other requirements for PST:
    1. Minimum sub-loan per borrower: P5,000
    2. Net take home pay is not lower than P3,500 per month after loan amortizations and other regular salary deductions (e.g. Income tax, GSIS, Philhealth, Pag-ibig, etc.)
    3. All other existing loans of the sub-borrowers are in current status
    Note: Outstanding principal balance should at least be 50% of the loan amount regardless of term



INTEREST RATE

    Fixed: sent monthly by the IGLF


MAXIMUM REPAYMENT TERM

    • Two (2) years without grace period
    • One (1) year for banks with secured lines against certain collateral (for non micro only)
    • Repayment term shall not exceed the weighted average term of the sub-loans in the batch


PREPAYMENT

    Non Microfinance: Allowed subject to the following:
    1. 15 calendar days prior notice
    2. Prepayment penalty of 2% on amount to be prepaid or breakfunding cost, whichever is higher

    Not applicable for Microfinancing and PST Loan Program.


RIGHT TO INFORMATION

    The FI must monitor and supervise the implementation and operations of sub-projects financed under the IGLF Program.



Download PDF