The Credit Surety Fund Program (CSF) is a credit enhancement scheme that allows micro, small and medium enterprises (MSME) that are members of cooperatives to borrow from banks even without collateral.
How it works:
- The CSF is created from contributions by well-capitalized and well-managed cooperatives with a counterpart contribution from the local government unit and donors. The fund will be used to provide surety cover to guarantee MSME loans from banks.
- The cooperative member’s loan application with surety cover will be endorsed by his cooperative to the bank.
- The cooperative and Oversight Committee administering the CSF will issue a Letter of Joint Suretyship upon the bank’s approval of the loan.
- The member receives the loan proceeds from the bank.
CSF resources:
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