State-run Land Bank of the Philippines (LANDBANK) has raised to P50 billion the available loanable fund for local businesses adversely affected by the COVID-19 pandemic to accommodate more borrowers.
This is the second budget hike made for the LANDBANK I-RESCUE (Interim REhabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19) Lending Program since its launch in April 2020. With an initial fund of P10 billion, the Bank later doubled this to P20 billion in April 2021.
The LANDBANK I-RESCUE Lending Program provides credit and loan restructuring assistance to businesses whose operations have been severely affected by the pandemic, through more flexible loan terms and conditions.
“Since its launch at the height of the pandemic last year, the I-RESCUE Lending Program has gained wide acceptance from borrowers striving to keep their businesses afloat amid the ongoing crisis. Rest assured that LANDBANK will continue to provide responsive credit assistance to support key sectors and contribute to accelerate the country’s ongoing economic recovery,” said LANDBANK President and CEO Cecilia C. Borromeo.
As of May 31, 2021, LANDBANK has approved loans totaling P20.95 billion to a total of 460 borrowers, comprised of 310 micro, small and medium enterprises (MSMEs), 83 cooperatives, 62 large corporations, and five (5) microfinance institutions (MFIs). Of this amount, 93% or P19.53 billion has already been released.
Under the I-RESCUE Lending Program, eligible borrowers may loan up to 85% of their emergency or permanent working capital requirements, with an affordable interest rate of 5% per annum for three (3) years, subject to annual re-pricing thereafter, and payable up to 10 years with a maximum of two (2) years grace period on the principal repayment.
The Program also offers a sub-credit facility for MSMEs and cooperatives, as well as self-employed individuals duly registered with the Department of Trade and Industry (DTI) and the Securities and Exchange Commission (SEC), classified to be critically affected by the ongoing pandemic.
Qualified borrowers may borrow a minimum amount of P100,000 or up to 85% of the actual permanent working capital requirement but not exceeding P3 million, at a lower fixed interest rate of 3% per annum, with no hard collateral requirement, and payable for up to three (3) years.
For existing LANDBANK clients, the Program provides loan restructuring assistance via additional loan and extended repayment period, or a combination of means to rehabilitate and restore operational cash flow.
The LANDBANK I-RESCUE Lending Program is available until December 31, 2022.
Interested borrowers may contact the nearest open LANDBANK Lending Center or Branch nationwide or call LANDBANK’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
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