IGLF RETAIL LENDING




PROGRAM DESCRIPTION

       The IGLF is a government fund owned by the Republic of the Philippines through the National Economic and Development Authority administered by the Development Bank of the Philippines to provide assistance to eligible Micro, Small and Medium Enterprises (MSMEs).


ELIGIBLE BORROWERS

  • Privately-owned investment enterprises


MAXIMUM ASSET SIZE OF INVESTMENT
ENTERPRISES

    1. PHP 200 million before financing and excluding the cost of the land; provided that loans of enterprises with asset size of PhP 100 million up to PhP 200 million shall be for industries with high value chain linkages to MSMEs and those with high employment generation potential and supportive of the priorities of the Philippine Development Plan.

    2. If the project is a spin off or subsidiary of another firm, the combined assets of the Investment Enterprise (IE) shall not exceed PhP 200 million.


ELIGIBLE INVESTMENT PROJECTS

    1. Purchase of project site (must not exceed 25% of the total amount applied for)
    2. Civil works: construction, expansion, upgrade/rehabilitation of project building
    3. Purchase of machinery/equipment/fixtures and installation
    4. Permanent working capital
    5. Credit Line
    6. Refinancing



ELIGIBLE CRITERIA FOR PROJECTS

    IGLF supports the establishment and expansion of financially, technically and economically viable MSMEs to achieve:

    1. Employment generation
    2. Promotion of labor-intensive industries
    3. Promotion of export-oriented industries
    4. Promotion of tourism-related projects
    5. Regional dispersal of industries
    6. Utilization of indigenous raw materials
    7. Greater self-reliance in the supply of important commodities
    8. Entrepreneurial development



MAXIMUM LOAN SIZE OF INVESTMENT
ENTERPRISES

               
    MAXIMUM LOAN AMOUNT
    • PHP 100 Million (80% of the total project cost)
    MODE OF PAYMENT
    • Credit Line: Up to 1 year
    • Medium-term: Over 2-5 years(inclusive of up to 1-year grace period on principal    repayment)
    • Long-term:
          - Fixed Assets: Over 5-12 years (inclusive of 3 years grace period)
          - Permanent Working Capital:maximum of 7 years (inclusive of 2 years grace         period)
    INTEREST RATE
    • Fixed/Floating
    • Conversion from variable to fi xed or vice versa once during the term of the loan
    • Set monthly



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