Land Bank Country Side Loan Fund (CLF)

The Countryside Loan Fund (CLF) is a wholesale credit facility from the World Bank. The CLF is available through LANDBANK to Participating Financial Institutions (PFI) for on-lending to eligible private investment enterprises. There are three Programs under the CLF, these are CLF I, II and III.

The Fund can be accessed through the qualified PFIs such as:

  • Commercial Banks/Unibanks
  • Rural Banks
  • Thrift Banks (Stock Savings & Loan Associations, Savings & Mortgage Banks, Private Development Banks)
  • Non-Bank Financial Institutions

by any of the following eligible sub-borrowers:

  • Sole Proprietorship
  • Partnership
  • Corporation (at least 70% Filipino-owned)
  • Cooperative/Association

The Fund is intended to finance any of the following sub-projects only:

  • Agriculture-related productive activity (e.g. production of crops & livestock, aqua-culture, plantation projects, farm mechanization, irrigation, contract growing, etc.);
  • Food and agro-processing venture (e.g. canning, packaging, rice milling, feed milling, oil milling, meat curing, etc.);
  • Manufacturing activity that generates employment/export (e.g. garments, ceramics, textile, embroidery, furniture, construction materials, etc.);
  • Product distribution activity (trading);
  • Service-oriented project that supports economic activity (e.g. transportation, warehousing, utilities, post harvest facilities, refrigeration, slaughter houses, etc.);
  • Environmental protection project (e.g. waste-water treatment facility, bio-gas, etc.);
  • Tourism-related project (e.g. hotels, resorts, theme parks, etc.);
  • Property development project
  • For CLF I and II: low and medium cost housing projects, industrial estate development, commercial building for lease (not more than 3-story with a lot area of not more than 1,000 sq. m.)
  • For CLF III: low and medium cost housing project

to be used as:

  • Working Capital (initial/incremental/existing)
  • Fixed Asset Investment (construction, expansion, or rehabilitation of productive facilities, excluding land purchase)
  • Special Financing Package (SFP) – any or combination of the following (for CLF III only):
  • Extension of maturity period of existing loan
  • Extension of grace period of existing loan
  • Conversion of existing dollar loan to peso loan
  • Cost overruns due to price escalation/peso depreciation

Interest Rate

Variable Rate
Fixed Rate-prevailing variable rate plus a premium based on the term of loan as follows:

Term Premium
Over 1 year to 5 years 1.0%
Over 5 years 2.0%

PFI to Sub-borrower
As negotiated between PFI and the sub-borrower (no cap on PFI spread)

Financing Mix

It is based on the Total Project Cost as follows:

Sub-borrower (Minimum) 15%
PFI (Minimum) 10%
CLF (Maximum) 75%
Total Project Cost 100%

For Special Financing Package (SFP):

PFI (Minimum) 25%
CLF (Maximum) 75%
Total Project Cost 100%

Sub-borrower’s participation will be at PFI’s discretion, provided PFI’s participation shall not be less than 10%.

Program Features CLF I CLF II CLF III
Availability Peso Peso Peso & US$
Asset Size Limitation No cap P250M US$ 50M equivalent
Sub-project Location Nationwide (subprojects located in NCR should be engaged in agriculture and agri-related activities Nationwide (subprojects located in NCR should be engaged in agriculture and agri-related activities Nationwide (sub-projects located in Cebu City and NCR should be engaged in agriculture and agri-related activities)
Maturities up to 1 year not available up to 1 year
Short Term up to 5 years up to 5 years up to 5 years
Medium Term up to year 2011 up to year 2015 maximum of 15 years
Long Term

Eligible Collaterals

Loans shall generally be secured by tangible collaterals (i.e. Real Estate Mortgage/Mortgage Trust Indenture, Chattel Mortgage, hold-out on deposits, etc.) or acceptable guarantees (i.e. HGC) consistent with current banking practices, pertinent laws, and BSP regulations.

Projects for funding under the CLF Programs must comply with all laws and regulations of the Philippines related to environmental protection.

For further information and/or assistance, please contact any Land Bank Center nearest you or call:

Wholesale Lending Department

Land Bank of the Philippines
18th Floor, LANDBANK Plaza
1598 M.H. Del Pilar cor. Dr. Quintos Sts.
Malate, Manila
Telephone Nos.: 551-2200 locals 2468, 7338, 2797, 7239 & 2707
Fax No.: 528-8523