FPSDC’s socialized credit facility is one of the financial services being offered by the Federation in order to provide sustainable and viable livelihood to community enterprise projects of the member cooperatives and Non-Government Organizations (NGOs) or Peoples’ Organizations (POs). This service facilitates the generation of income and allows for the reinvestment of capital. Apart from this, this service also assists in providing necessary financial support for institution building and other back-to-back loans. Specifically, the socialized credit facility supports the following:
Enterprise& Livelihood Projects
For this specific type of project, the members provides its members, primarily those involved in marketing, processing and manufacturing of both agricultural and non-agricultural projects in particular, are provided with necessary working capital or fixed asset acquisition fund.
Relending or Socialized credit
Groups and individuals engaged in relending operations similar to microfinance can also be assisted by FPSDC by providing revolving loan fund.
Bridge financing
Since FPSDC advocates sustainable development, the Federation also offers provisional financing for development projects hindered by delayed funding. The said financial assistance can be expected from FPSDC in the condition that the Federation will be assured of another resource organization to give back the temporarily provided funding.
Institution Building Loan
Since FPSDC finds ways to ensure the sustainability and development of the respective programs of its members, the Federation entrusts the members with funds that can help in the enhancement of their operations. (refer to separate section on other credit facilities)
Back to Back Assistance
Back to back assistance is made available for members with good standing and no outstanding loan in other facilities. This particular credit assistance is intended to immediately address the members’ temporary financial needs and further extended as a back-to-back loan against their equity or investment
Types of Loan Assistance
Term Loan (TL)
Term loan is extended to projects that require start-up and long-term capital requirements, of which payments can be amortized within a specified loan period.
Credit Line (CL)
Credit line is extended to projects that require seasonal or revolving working capital, against which funds may be drawn for continuous funding within the approved line for a specified period of time.
Eligibility Criteria for Loan Borrowers
Loan assistance of FPSDC shall be extended to members engaged in sustainable development activities. Eligibility for borrowing is based on the following criteria:
1. Duly registered with the Securities and Exchange Commission (SEC), or the Cooperative Development Authority (CDA), or other government registering bodies (DOLE, etc.)
2. Actively involvement in development work as evidenced by:
- Good reputation in the community
- Track record or active performance in the promotion of sustainable development projects for at least three (3) years
- Clear and defined development mandate & programs
- Well established and expanding constituency/membership & client base
- Commitment to:
- Implement environmentally sustainable development initiatives
- Address poverty, inequality and structural injustice
- Promote economically viable and sustainable household and community
3. With in placed sound and operational financial management system evidenced by:
- Updated Financial records
- Established internal control
- Established documentation system (i.e. Financial policies, lending guidelines and procedures, record keeping, etc.)
4. Demonstrate strong financial position and social performance based on industry standards.
5. Demonstrate effective management and leadership capability as indicated by:
- Low staff turn-over
- Presence of competent (knowledgeable and experienced in operation) staff and leaders
- Satisfactory performance of projects/enterprises being managed
Requirements for Loan Application
1. BASIC:
- Duly accomplished Application Form
- Loan proposal using the attached format
- Board Resolution or Secretary Certificate indicating the
loan application and the authorized representative who shall transact business, apply for loan, mortgage property and sign all the loan documents in behalf of the organization applying for loan - Audited Financial Statement (Balance Sheet,
- Income Statement and Cashflow Statement including
schedules) for two (2) preceeding calendar years - List of creditors (refer to FPSDC form)
- Loan Delinquency Report/Aging of Loan Receivables (refer to FPSDC form) – for socialized credit & marketing projects
- List of DOSRI accounts – for socialized credit projects only
- Schedule of accounts/loans payable (refer to FPSDC form) – for manufacturing & marketing projects
- Projected Financial Statement (Balance Sheet, Income Statement and Cashflow Statement with assumptions) for the duration of the loan term being applied for
- Payment of service fee
2. OTHERS:
- Copy of SEC or CDA registration
- Copy of Articles of Incorporation/Cooperation and By-Laws
- List of incumbent Board of Directors and their Biodata as submitted annually to SEC or CDA
- Copies of pertinent business permits and licenses
3. ADDITIONAL:
- List of collaterals with the following attachments:
- For borrowers with Real Estate Collaterals:
- Xerox copy of OCT or TCT
- Tax declaration
- Updated Official Receipt for Realty Tax payment
- Special Power of Attorney in favor of the organization if property is owned by third party
- Insurance policy if property is insured
- For borrowers with Chattel Mortgage: (Vehicles, machinery, appliances…)
- Registration Certificate
- Updated Official Receipt for registration fees
- Insurance policy
- For borrowers with Real Estate Collaterals:
WHERE TO FIND US
Main Office Address:
Unit 7A Future Point Plaza III, Brgy. South Triangle, Panay Avenue, Quezon City 1103
Warehouse Address: Weldon Realty Bldg. 4 Piscor Compound, A. Rodriguez Avenue, Manggahan Pasig City
Warehouse Address: Weldon Realty Bldg. 4 Piscor Compound, A. Rodriguez Avenue, Manggahan Pasig City
Contact Us
Tel: 02-990-77-65
Telefax: 02-990-0148
Telefax: 02-866-44-47