LANDBANK increases its credit line for the pandemic-hit business to ₱50 billion from ₱20 billion due to strong demand

Landbank of the Philippines (LANDBANK) has increased its credit line for pandemic-hit businesses to ₱50 billion from ₱20 billion due to strong demand.

So far, LANDBANK has approved ₱20.95 billion in loans for 460 borrowers under its Interim Rehabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19 (I-RESCUE) and released ₱19.52 billion or 93% of the total approved loans.

Of the beneficiaries, 310 were micro, small, and medium-sized enterprises (MSMEs), 83 were cooperatives, 62 were large companies, and 5 were microfinance institutions.

Entities affected by the pandemic may tap the LANDBANK facility for funding and restructure their loans for more flexible terms.

Loans under the facility can cover up to 85% of their working capital needs and will carry a 5% annual interest rate that is fixed for three years before it is subjected to repricing. They will mature in 10 years, inclusive of two years grace period on the principal.

The program also offers a separate credit facility for MSMEs, cooperatives, and self-employed individuals, in which they can borrow anywhere from ₱100,000 to ₱3 million, or the amount equivalent to 85% of the capital they need.

These loans bear a fixed interest rate of 3% per annum payable for three years and do not require hard collateral. 

“Since its launch last year at the height of the pandemic, 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 accelerating the country’s ongoing economic recovery,” said Cecilia C. Borromeo, LANDBANK President and CEO.

The program will be available until the end of 2022.

SOURCE: Business World