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LCAP Program Guidelines
Livelihood Credit Assistance Program (LCAP)

LCAP is the primary credit facility of the NLDC intended to augment the income of poor farmers and beneficiaries of the Land Reform Program (RA 6657)

1. Eligible Borrowers
  • Rural Financial Institutions
  • Cooperatives
  • Non-Government Organizations
2. Qualifications:
  • Registered with the proper government authority
  • Profitable operations for the last 3 years and latest interim
  • At least 1 year experience in microfinance
  • With full-time and capable staff managing financial/lending operations
  • Satisfactory credit record with other creditors (No past due amortizations)
  • Adequate documentation and accounting systems are in place
  • At least 10% leverage CRAR
  • Past due rate not exceeding 20% of overall lending operations. For RFIs, no legal reserve deficiencies and of good standing/no major exceptions per BSP.
3. Services Available :
  • Revolving Credit Line of amount based on the Partners’ financial capability and needs. Credit line renewal/increases may be granted subject to NLDC evaluation of Partners’ availment performance and implementation of the livelihood credit program.
  • Developmental Loan - Up to a maximum of 10% of approved credit line. At least 50% of credit line should have been availed for relending before this loan can be accessed by Partner. This facility is also offered only to Partners in active loan status with NLDC. Purpose of the loan shall be for:
    • The conduct of capability-building/training of staff handling NLDC livelihood credit program and social preparation activities for end-borrowers.
    • ·Logistics support such as purchase of motorcyles for mobility of staff or computers/office equipment for efficient record keeping and documentation.
Interest Rates
  • Revolving Credit Line -- 9% per annum
  • Developmental Loan -- 4% per annum, loan duration depends on nature of loan utilization but not to exceed 3 years
  • Capability-building program delivered through the following services:
For Program Partners:
  • Training of Trainers on financial management (e.g. savings, cash management, and financial planning) and small enterprise development (e.g. starting and improving business, viable business ideas)
  • Promotion of business development services
  • Community development and community-based enterprises
    For Center Chiefs/Farmer Leaders:
    • Center management training
    • Training of trainers on small enterprise development and financial education
    For End Borrowers:
    • Skills training and transfer of technology/business ideas
    • Training on cash and debt management, simple bookkeeping and recording
4. Loan Collaterals
  • Continuing deed of assignment of borrowers/clients’ promissory notes (PNs) under NLDC lending programs
  • Post dated checks
  • Chattel/real estate mortgages of financed assets
5. Qualified borrowers of Program Partners
  • Small farmer beneficiaries and their wives/dependents in the agrarian reform communities (ARCs)
  • Other non-farmer and marginalized households in the ARCs and KALAHI zones
6. Requirements
  • Accomplished application form and pre-evaluation questionnaire
  • Registration and incorporation papers
  • Board resolution to borrow
  • Personal data sheet of board of directors/principal officers
  • Audited financial statement for the last 3 years and latest interim financial statement
  • Other necessary documents

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