Landbank Supported PUJ Modernization in 2021 with ₱2.11 billion in Loans

On Wednesday, the LandBank of the Philippines approved the ₱2.11 billion worth of loans over the previous year in an effort to support the public transport operators in acquiring modern public utility jeepneys (PUJs). Landbank furthered that the loans approved for the entire year of 2021 were able to help 78 public transport operators purchase 810 brand-new modern PUJs.

The loans were approved under the lender’s Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles (SPEED-PUV) program. Last year’s loans accounted for an increase of 177% compared to 2020’s ₱1.19 billion under the same program. Since the launch of SPEED-PUV in 2019, Landbank has been able to provide loans amounting to ₱3.79 billion which has led to the acquisition of 1,619 modern jeepneys.

“The SPEED-PUV Program forms part of Landbank’s continued partnership with the national government to advance the country’s transport system, help protect the environment, and enhance the overall riding experience of the public,” explained Cecilia Borromeo, Landbank president, and CEO.

In partnership with the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB), Landbank’s SPEED-PUV program supports the transition of public transportation cooperatives to purchase energy-efficient, environment-friendly, convenient, and safer vehicles by providing more affordable financing.

The program functions in line with the Public Utility Vehicles Modernization Program (PUVMP), where eligible borrowers are allowed to loan up to 95% of a modern PUJ’s total cost. This loan has an interest rate of 6% per annum, which is payable based on cash flow. However, payment must not exceed a maximum of seven years.

Source: GMA News