Through our banner credit program, the Production Loan Easy Access (PLEA), the DA through ACPC is able to contribute to financial inclusion. The PLEA Program is meant to complement the programs of Land Bank of the Philippines as it generally targets the poor, unbanked areas of the country.
Under PLEA, our small farmers and fishers are able to have easier access to affordable credit with an interest rate of 6% per annum. No collateral is required. Loans are disbursed through lending conduits particularly rural banks, cooperatives, cooperative rural banks and people’s organizations.
Of the 199 municipalities currently covered by the program, 45 are totally unbanked or unserved by the banking system. But we have successfully penetrated these areas. In fact, 54% of our farmers/fishers have never borrowed from a formal lender before their participation in PLEA. 100% of our clients are small farmers and fisherfolk.
The program has a repayment rate of 91% as of Dec. 31, 2018 down from 97% as of Sept 2018 primarily because of the calamities that adversely affected our farmers during the last quarter of 2018.
The program is far from perfect, but it is a work in progress. I’m lucky to have a brilliant, dedicated and hardworking team.
This year, we will partner with government financial institutions such as DBP and UCPB (in addition to Land Bank and other banks) as part of our expansion strategy.
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