The PCFC Micro-Housing Loan Facility aims to support the government’s effort to improve the quality of life of the poor thru financial assistance for housing improvement such as house repairs, renovation or expansion.
The program is being implemented under the sub-component “Shelter Finance for Low Income Communities Sector Project of the Development of Poor Urban Communities Sector Project(DPUCSP). DPUCSP is a government project thru the Housing & Urban Development Coordinating Council (HUDCC) and the Development Bank of the Philippines (DBP) and funded by the Asian Development Bank (ADB).
GENERAL POLICY GUIDELINES
PCFC to MFI
| Type of Credit Facility | Term loan (non-revolving) available within 1 year from approval of credit facility. |
| Eligible Borrowers | Accredited MFI partners. |
| Loan Purpose | To finance the MFI’s relending program for its end-clients. |
| Loan Amount | Based on 85 % of credit needs of end clients as indicated in the Housing Availment Plan (HAP). |
| Loan Maturity | Up to 5 years inclusive of 6-month grace period on principal for Promissory Notes PNs with terms of 2 years or more. |
| Mode of payment | Quarterly amortization of principal and interest. |
| Interest and Service Charge | 11% interest per yr plus 1 % service fee for PNs with term of 1 year and below; 12 % interest per yr plus 1 % service fee for PNs with terms of more than one year. |
| Manner of Availment | Reimbursement basis (i.e. drawdown against actual loan releases to end clients) or liquidation basis (i.e. drawdown based on projected loan releases); list of borrowers to be submitted within 2 months from drawdown with PCFC. |
| Security Requiremen | Post Dated Cheques; Deed of Assignment of sub-PNs and all underlying collaterals. |
| Additional Availment Requirements | Submission of Housing Availment Plan (HAP). |
MFI to BORROWER
| Eligible Borrowers | Low Income families in urban and rural areas. |
| Loan Purpose | To finance home improvement (repair, renovation, completion, expansion). |
| Loan Amount | In accordance with MFI’s credit policies and end-clients repayment capacity (cash flow) but shall not go beyond P150,000 inclusive of end-clients other loans with the MFI. |
| Suggestion | Labor to be provided as counterpart of end-clients. |
| Loan Maturity | Based on MFI’s credit policies and guidelines but not to exceed 5 years. |
| Mode of payment | Based on MFI’s credit policies and guidelines, i.e. weekly, semi-monthly or monthly. |
| Interest and Service Charge | Based on MFI’s credit policies and guidelines. |
| Manner of Availment | Based on MFI’s credit policies and guidelines. |
| Suggestion | Staggered release based on work progress subject to loan utilization check of previous drawdown. |
| Security Requirement | Based on MFI’s credit policies and guidelines, i. e. chattel mortgage and insurance for loans above P75,000. |
| Additional Availment Requirements | The house repair loan should be supported by a livelihood project and/or total household cashflow analysis. |
BASIC IMPLEMENTING GUIDELINES
- MFI partners can use their existing available credit line. If fully utilized, the MFI may request for additional amount subject to the usual evaluation and approving process.
- For CFPs due for renewal, the credit requirements for the loan program shall be considered and included in the amount of credit facility for renewal.
- The MFI shall submit the HAP supporting document to the CFP.
- Loan releases for house repair shall be reported in a separate SOE and separate caption in the PSR.