Question & AnswerQ&A (QRCGC CIRCULAR NO. 103, S. OF 2000)
The purpose of the ILPF is to finance livelihood enterprises of small-scale fisherfolk, fishfarmers, their immediate family members, and fishermen cooperatives for their start-up capital, working capital, or for expansion/improvement of existing projects, as well as for relending by conduits to individual fisherfolk/associations/primary cooperatives.
Qualified borrowers include small-scale fisherfolk, fishfarmers, their immediate family members, fishermen cooperatives, cooperatives, corporations, local government units (LGUs) as conduits, cooperative federations, and people's organizations.
Training is mandatory for qualified borrowers except for qualified conduits, who are not required to undergo training. A Certificate of Training is issued to qualified borrowers and is a requirement for loan release.
Applicants must be duly accredited with QUEDANCOR and must be bona fide residents of the fishing area.
They must have a viable project feasibility study, have undergone value orientation training conducted by the Department of Agriculture, possess sufficient experience or knowledge of the business project, and be registered or licensed by the appropriate government agency when applicable.
Collateral options include real estate mortgage, chattel mortgage (machinery and equipment directly related to the project), assignment of government bonds, securities, commercial shares of stock or bank deposits/placements, and co-makers.
For individual borrowers, the maximum is P20,000.00 with two co-makers or P50,000.00 with Real Estate Mortgage or Chattel Mortgage. For cooperative associations, the maximum loanable amount is P200,000.00 with Real Estate Mortgage or Chattel Mortgage.
The interest rate is 8% per annum for cooperatives and associations, and 10% per annum for individual borrowers.
The LGU must secure the loan by the assignment of their Internal Revenue Allotment (IRA) covering the total project cost, properly supported by a Sanggunian Resolution.
They must submit a board resolution or Secretary's Certificate authorizing the cooperative to participate in the program and designating authorized representatives with specimen signatures.
This circular took effect on January 17, 2000.