Loaning Policies
- Purpose: To finance livelihood enterprises of small-scale fisherfolk, fishfarmers, immediate family members, and fishermen cooperatives for start-up, working capital, expansion, or improvement.
- Conduits may re-lend to individual fisherfolk, associations, or primary cooperatives.
Loan Applicant Requirements
- General: Must be accredited by QUEDANCOR and bona fide residents of the fishing area.
- Fisherfolk, Cooperative, Corporation: Viable project feasibility study, value orientation training by Department of Agriculture, relevant experience/knowledge, registration/licensing as applicable.
- Local Government Units (LGUs) as Conduits: Project approval by Sanggunian Resolution and complete listing of beneficiaries.
- Cooperative/Federation/People's Organization as Conduits: Registration/licensing, juridical personality with authority to contract/borrow/lend, satisfactory management with track record, financial systems, qualified staff, positive financial ratios and reputation.
Collateral Requirements
- For direct lending: Real estate mortgage, chattel mortgage of project machinery/equipment, assignment of government bonds/securities/commercial stocks/bank deposits, and co-makers.
- For LGU conduits: Loan secured by assignment of Internal Revenue Allotment (IRA) supported by Sanggunian Resolution.
- For Cooperative/Federation conduits: Hold-out deposit (at least 15% of loan), joint and several signatures by officers, and other acceptable collateral.
Loanable Amount
- Direct lending: Individual borrowers up to P20,000 with co-makers; up to P50,000 with mortgage; Cooperatives up to P200,000 with mortgage.
- Conduits: Maximum loanable amount of P1,000,000.
Interest Rates and Service Fee
- Direct lending: 8% per annum for cooperatives/associations, 10% per annum for individuals.
- Re-lending by conduits: LGUs pay 8% per annum; pass-on rate maximum 14%. Cooperative/FPO pay 8%; pass-on up to 16%.
- Non-refundable Quedancor service fee of 2.5% per annum on the outstanding principal.
- Interest charged and service fees deducted from loan proceeds initially and collected annually afterwards.
Implementation Mechanics – Clientele Accreditation
- Applicants must submit accreditation application with required documents and respective accreditation fees (P100 for individuals, P2,000 for juridical entities).
- Cooperatives/associations must submit board resolution or secretary's certificate with authorized representatives and specimen signatures.
- LGUs must submit Sanggunian Resolution, list of key officials, and list of participating fisherfolk/associations with project details.
- People's organizations require SEC/CDA registration, Articles of Incorporation, key officials list, resolutions, lending track record, project plan, and member/borrower list.
Effectivity
- This circular amends Circular No. 068, series of 1997, and takes effect on January 17, 2000.
- Signed by Galo B. Garchitorena, President and CEO.