LAND BANK OF THE PHILIPPINES

Gen. Santos Lending Center

2F Vensu Bldg., National Highway. Gen. Santos City

A Presentation on
REDISCOUNTING LINE
and

SHORT TERM LOAN LINE

for
CREDIT COOPERATIVES
1. REDISCOUNTING LINE
RATIONALE OF REDISCOUNTING LINE

The LANDBANK‘s credit program for

Institutional/Employees’ Cooperatives
supports the government’s initiatives to
provide income-augmenting
businesses/projects to government and
private institutions employees via a
wholesale credit window through
Employees’ Cooperatives.
Purpose:

To augment capitalization
thru rediscounting of
sub-borrowers
PROMISSORY NOTES (PNs).
Proposed
Credit
Rediscounting Availability/Term
Line/Amount
Rate
to be
Granted

Based on 85% of current Via up to 720-day

Debt/Equity OS balance of PN (2-years)
ratio of 6:1 sub-PN
or
Equivalent
Amount of
Coop’s A/R
Mode of Payment Interest Rate Collateral

Principal – Prevailing Assignment of;

payable in equal interest rate 1. sub-
monthly for coops borrowers PNs
amortization. ranging 8.0% and
to 9.0% per 2. Proceeds of
Interest – payable annum. Mortgage
monthly in Redemption
arrears Insurance
(MRI)
SHORT TERM LOAN LINE
(STLL)

 To finance additional capital for

grocery/consumer store.
Proposed Amount to
Interest Rate
be Granted

Based on Working Prevailing interest rate for

Capital Requirement of coops ranging from 8.0%
the Coop (as computed) to 9.% per annum.
Or
For every P100,000.00
investment to CSF
equivalent to
P1,000,000.00
Availability
Mode of Payment Collateral
/ Term
Via up to Principal – payable 1. Standard
360-day lumpsum upon collateral
PN maturity of PN requirements
suc as: REM,
Interest – payable Hold-out Deposit
quarterly in arrears 2. Surety Cover of
(quarterly repricing) Credit Surety
Fund @ 80% (if
the Coop is a
member of CSF)
DEPOSIT PRODUCTS: Savings Accounts

Type of Deposit Minimum Intial Minimum Interest Rate Service Charge

Account Deposit maintaining
Balance

Regular 10,000.00 10,000.00 0.25% 200.00*

Savings

*falling below the required maintaining balance

DEPOSIT PRODUCTS: Current Accounts

Type of Deposit Minimum Initial Minimum Interest Rate Service Charge

Account Deposit maintaining
Balance

Regular 10,000.00 10,000.00 Non- 200.00*

Current interest
bearing.

*falling below the required maintaining balance

Requirements in Opening of Account
COOPERATIVES • Certificate of Registration with the
Cooperative Development Authority

• Articles of Cooperation and By-Laws

• Duly notarized Board resolution

incorporating the following:

- Authority to open a bank account

with LANDBANK
- Designated Officers authorized to
sign and the nature and extent of
such authority
Other Services Offered:

• Trainings and Seminars conducted by

Landbank Countryside Development
Foundation, Inc. (LCDFI) on CDA
required seminars FREE of charge.

• Conduct of Cooperative Operations

Review.
 For more information:

Please visit our office located at

2 Floor Vensu Bldg., National
Highway, Gen. Santos City
or
Call (083) 552-1533