The Land Bank of the Philippines (LANDBANK) is rolling out a P1-billion lending program to empower countryside financial institutions (CFIs) to digitalize their banking operations to reach and service more underserved and unbanked Filipinos.
Through the Digitalization of Countryside Financial Institutions (DIGI-CFI) Lending Program, LANDBANK will finance digitalization projects, including payment for subscription or licensing fee for commercial software or outsource information technology (IT) systems.
Under the Program, LANDBANK can also finance the acquisition of hardware or computer equipment and purchase or development of commercial software, application, or system, including maintenance and support.
LANDBANK President and CEO Cecilia C. Borromeo highlighted the importance of digital transformation for CFIs to remain resilient and relevant amid the evolving banking landscape, during the 69th Annual National Convention and General Membership Meeting of the Rural Bankers Association of the Philippines (RBAP) on 27 May 2022 in Dapitan City, Zamboanga del Norte.
“LANDBANK aims to boost the capacity of rural banks to contribute to the digitalization wave. The possiblities for growth are endless, with the end goal of promoting financial inclusion and providing innovative and responsive digital financial services,” said President Borromeo.
Under the DIGI-CFI Lending Program, rural, thrift and cooperative banks can borrow up to 80% of their total project cost with an interest rate of 5% per year for term loans, fixed for the first year and subject to re-pricing thereafter, and payable up to five (5) years.
For short-term loans, the prevailing rate of LANDBANK at the time of availment applies, but not lower than 5% per annum, payable up to one (1) year, and available via a 180-day Promissory Note.
As of end-April 2022, LANDBANK’s outstanding loans reached P9.66 billion in support of 88 rural financial institutions nationwide, underscoring the Bank’s steadfast commitment to advance financial inclusion and countryside development.
Interested borrowers of the DIGI-CFI Lending Program may contact the nearest 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.