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STATE-RUN Land Bank of the Philippines (LANDBANK) plans to further expand its cooperative and small business loan program to extend credit to more borrowers at a lower interest rate.
LANDBANK said in a statement on Sunday that it will create a subcredit line under its loan program for micro, small and medium-sized enterprises (MIPYMES) and cooperatives called Provisional Rehabilitation Support to Cushion Companies Unfavorably Affected by COVID-19 or I -RESCUE. Program.
The new facility will allow MSMEs, cooperatives and freelancers to obtain at least P100,000 in loans or up to 85% of the working capital they need. The loan carries a to beFixed interest rate of 3% per annum and maturity in three years.
“We are enhancing the I-RESCUE loan program to cover a broader range of key industries that need greater access to credit. LANDBANK is keeping up with the emerging requirements under the new normal in support of 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 plans. It is available until the end of 2022.
LANDBANK has approved P6.95 billion in loans to 227 borrowers under the program through January. Of this total, it has already released P5,280 million to 167 MSMEs, 34 cooperatives, four microfinance institutions and three large companies.
LANDBANK received a P27.5 billion capital injection from the government last month as authorized by Republic Law No. 11494 or the Bayanihan Recover as One Act to expand its loan program for affaffected sectors.
Lender’s net income fell 7.57% to P17.1 billion in 2020 from P18.5 billion in 2019. – BML
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