MANILA – Land Bank of the Philippines (Landbank) will continue to cater to Filipinos’ funding needs vis-à-vis the impact of the pandemic especially now that Bayanihan 2 has been signed into law.
“Landbank will continue to assist customers that meet the bank’s risk asset acceptance criteria,” Landbank president and chief executive officer Cecilia Borromeo told the Philippine News Agency (PNA) Monday.
She said Landbank has adjusted its “risk appetite” taking into consideration the need to help customers sustain the viability of their businesses amid the challenges brought about by the pandemic.
“We will develop new programs/products as necessary,” she added.
Among the loan programs that the bank is now offering to help several sectors address the impact of the pandemic are the Restoration and Invigoration package for a Self-sufficient Economy toward UPgrowth for LGUs (RISE UP LGUs), the Countryside Financial Institutions Enhancement Program (CFIEP), and the Interim Students’ Loan for Tuitions towards Upliftment of Education for the Development of the Youth (I-STUDY) program.
Landbank has allocated PHP10 billion for the RISE UP LGUs lending program, which is to help finance innovative LGU projects.
Loan amount will not only depend on the project’s funding requirements but total loan exposure should not be more than the LGU’s net borrowing capacity based on the Bureau of Local Government Finance’s (BLGF) computation or certification.
Annual interest rate for this lending program is 4.5 percent for the first year, and subject for annual repricing in the succeeding years.
Proceeds of loans under this program may be used for the acquisition of agricultural produce, equipment, construction of facilities for linking of products to the market like market infrastructure development and/or improvement, mobile market, collection and buying stations, and related facilities.
The CFIEP is a joint program with the Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corporation (PDIC).
It is to boost cooperative banks, rural banks, and thrift banks’ capital to address the impact of payment defaults by their own borrowers due to the pandemic, as well as calamities and disasters.
It is to provide countryside financial institutions the means to extend more loans to their clients to also lift the economy in rural areas.
On the other hand, the I-STUDY program is to help parents and guardians finance the education of their kids or benefactors for school years 2021-2022.
Landbank has earmarked about PHP1.5 billion for this credit program and borrowers may avail as much as PHP300,000.
Annual interest rate of this product is 5 percent, payable within one year if proceeds will be used to finance pre-school, primary, and secondary education; while three years, inclusive of one year grace period, if the proceeds will be used to finance tuition fee and other school fees of those enrolled in the tertiary level. (PNA)
