LANDBANK seeks to expand its small business loan program
STATE-RUN Land Bank of the Philippines (LANDBANK) plans to expand its small business and cooperative loan program to extend credit to more borrowers at a lower interest rate.
LANDBANK said in a statement on Sunday that it would create a sub-credit facility under its loan program for micro, small and medium enterprises (MSMEs) and cooperatives called Interim Rehabilitation Support to depreciate businesses adversely. affected by COVID-19 or I-RESCUE. program.
The new facility will allow MSMEs, cooperatives and the self-employed to take out at least 100,000 pesos in loans or up to 85% of the working capital they need. The loan comes with a Fifixed interest rate of 3% per year and maturity in three years.
“We are enhancing the I-RESCUE loan program to cover a wider range of key industries that need better access to credit. LANDBANK remains in tune with emerging requirements under the new standard to support the country’s ongoing economic recovery, ”said LANDBANK President and CEO Cecilia C. Borromeo.
The program was created in April 2020 to help small businesses cope with the impact of the coronavirus pandemic by providing low-interest loans and restructuring programs. It is available until the end of 2022.
LANDBANK approved 6.95 billion pesos in loans to 227 borrowers under the program in January. Of this total, it has already released 5.28 billion pesos to 167 MSMEs, 34 cooperatives, four microfinance institutions and three large companies.
LANDBANK received a capital injection of 27.5 billion pesos from the government last month, as authorized by Republic Act 11494 or the Bayanihan to Recover as One Act to expand its loan program for affsectors.
The lender’s net income fell 7.57% to 17.1 billion pesos in 2020 from 18.5 billion pesos in 2019. – BML