DAR dangles a credit window for "low credit rating" coops
Tagbilaran City (27 June) -- A window of opportunity opens for cooperatives wanting financial boost but still working to establish a credit rating from financial institutions.
The Department of Agrarian Reform dangles the Credit Assistance Program for Beneficiaries Development (DAR-CAPBD), a credit window with the state Land Bank as its financial conduit, says information Officer Ma. Lydia Bantugan recently.
Farmer cooperatives who want fresh entrepreneurial funds but could not qualify yet in the numerous credibility requirements demanded by banking and financial institutions can look up to the DAR-CAPBD, she added.
The credit can go as high as the project proposals ask, she intoned, stressing that the DAR also evaluates the coop paying capacity before nodding to the credit-funding booster.
The DAR financial credit facility evaluates the cooperative though, through a cooperative capacity assessment performance evaluation and review where DAR assists them in the qualifying requirements.
But if the cooperative is deemed to be a good payor, the CAPBD, which has a partnership agreement with LandBank can now push for the immediate upgrade of the coop's credit rating to LandBank or any financial institution.
That means a cooperative is spared the numerous and tedious processes to be complied to be given a credit credibility rating from any financial institution, she explained.
In Bohol, according to CAPBD point person Paula Morales, La Hacienda Cooperative has graduated and has assumed a full LandBank loan window, after satisfactorily paid their dues.
At least six other cooperatives are now processing to avail of the CAPBD window, she said. (PIA-Bohol) [top]