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Loan Features

  1. Maximum Loan Amount

    1. LGUs: 90% of total project cost
    2. Private: 80% of total project cost

  2. Mode of Payment

    Retail: (LGUs/Private Ventures)

    1. Civil Works: Maximum of 15 years (inclusive of 3 years grace period on principal repayment)
    2. Equipment: Maximum of 10 years (inclusive of 3 years grace period on principal repayment)
    3. Working Capital: Maximum of 5 years (inclusive of 3 years grace on principal repayment)

      Wholesale: (MFIs/Rural & Thrift Banks/Cooperatives & NGOs

    4. Up to 10 years (inclusive of 6 months to 2 years grace period on principal repayment)

  3. Maximum Loan Amount

    1. Market Rate

  4. Other Fees

    1. Commitment Fee - 0.15% per annum on unreleased balance
      - Subject to payment of non-utilization fee and prepayment penalty.Non-utilization fee refers to the non-availment of the loan, after a loan drawdown request is made.

  5. Loan Collateral/ Insurance

      The loan shall be secured by any or a combination of the following:
      Deed of Assignment of specified portion of Internal Revenue Allotment (IRA)

    1. Real estate/ chattel mortgage
    2. Government guarantees
    3. Hold-out on deposits
    4. Assignment of project income, purchase orders, export receivables, other collateral acceptable to DBP
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