▪ Individual rice farmers registered in the Registry System for Basic Sectors in Agriculture (RSBSA)
▪ Cooperatives

▪ Direct Lending - Up to 90% of the total project cost based on the farm plan and budget
▪ On Lending – based on net borrowing capacity but not to exceed the following:
- Relending – up to 90% of the total project cost
- Rediscounting – up to 90% of face value of the sub-
Promissory Note (PN) or its outstanding balance in current status, whichever is lower

▪ Purchase of farm inputs
▪ Acquisition of farm machinery and equipment
▪ Working Capital
▪ Relending to small rice farmers
▪ Rediscounting of existing loans of small rice farmers

▪ Direct Lending – Two percent (2%) per annum (p.a.)
▪ On-Lending – Zero percent (0%) provided that the effective pass-on rate to farmer members is not more than six percent (6%) p.a.

▪ Security interest over insurance proceeds

A portion of the annual fund has been allocated to the Expanded Rice Credit Assistance (ERCA), and shall be shared equally by LANDBANK and DBP. This program aims to help increase the productivity of rice farmers and their cooperatives by providing financial assistance for rice production, the acquisition and establishment of agricultural production and processing facilities, and farm improvements.

For the geographic delineation of coverage, LANDBANK shall cover 40 provinces where DBP Lending Centers are not physically present

• Individual farmers registered in the Registry System for Basic Sectors in Agriculture (RSBSA) maintained by the Department of Agriculture (DA)
• Cooperatives accredited by DA with rice farmers as members

For Individual Rice Farmers
To qualify for a loan under ERCA-RCEF, an individual farmer must:

• Be registered in the RSBSA
• No outstanding loan from formal lending institutions and DA-ACPC credit conduits for the same project being applied for
• No adverse findings
• Has undergone technical training or has experience on palay-related projects.
• Actively tilling the land or directly supervising actual farming operations or a leaseholder directly tilling the land
• With marketable surplus (not for subsistence farming or self-consumption)

For Cooperatives
To qualify for a loan under ERCA-RCEF, a cooperative must:

• Be accredited by the Department of Agriculture
• Be duly registered with the Cooperative Development Authority (CDA)
• No adverse findings on the cooperative and its key officers;
• Should have strong back-office support with defined Operational Structure composed of manager, cashier, treasurer, bookkeeper and loan/collection officer or other equivalent positions;
• Must exhibit profitable operations and sound financial condition for at least one (1) year, if start-up, must be at least six (6) months operational and must be able to demonstrate profitable operations based on the financial projections of the proposed project for financing.
• Past Due Loan Ratio (NPL, items in litigation to Gross loan portfolio) not exceeding 25%
• Certificate of Compliance from CDA, as applicable
• Has met the capital requirement of CDA or not less than ₱30,000.00
• With proven track record or familiarity on the proposed project (Key officers have undergone technical training or experience on rice-related projects)
• Systems and procedures are in place, particularly in lending operations/ books of accounts
• Majority owned (50% plus 1) by rice farmers or by non- rice farmers but directly involved in rice value chain activities

For Cooperatives’ member-borrowers under Relending/Rediscounting
The member-borrower should:

• Be registered in the RSBSA as rice farmers
• Has undergone technical training or has experience on palay-related projects

You may fill out an RSBSA Registration Form, which you can get from the MAO or the LANDBANK Lending Center.

Have the form certified by the MAO/CAO, MAFC/RAFC, and a Barangay Official. The numbered and certified stub will then serve as proof of eligibility and listing in the RSBSA, which qualifies you to avail of ERCA-RCEF.