Rural Finance in the Philippines: Issues and Challenges

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Llanto

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Terms / conditions Credit Risks Loan purpose

Loan ceiling

Collateral requirement

Loan maturity

Savings Mobilization

Interest rates

Warehouse Construction Marketing Loan Rice Mill Loan Trucking Loan

P750T (more or less)P1MP200T (more or less) P300T (more or less)

REM on the lot and waterhouse; Built-in on the warehouse loan; Chattel Mortg on ricemill, truck

8 years 4 years 5 years

12% 12% 12%

100% Quedancor

without

Purchase of breeding stock, Pasture development and/or maintenance; Other purposes that contribute directly in increasing productivity

Based on actual needs of the project

REM/CM, Assignment of leasehold rights over the land covered by Pasture Lease, Agreement Livestock Ins.

Maximum of 15 years inclusive of 3 years grace period

Fully secured: 15%

100% DAR

-

Not secured: 17%


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