LAND BANK of the Philippines (LANDBANK) increased its credit line for pandemic-hit businesses to P50 billion from P20 billion previously due to strong demand.
LANDBANK said so far, it has approved P20.95 billion in loans for 460 borrowers under its Interim Rehabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19 or I-RESCUE program. It has released P19.52 billion or 93% of the total approved loans, the state-run bank said in a statement on Thursday.
Majority of the beneficiaries or 310 were micro-, small- and medium-sized enterprises (MSMEs), while 83 were cooperatives, 62 were large companies, and five were microfinance institutions.
Entities affected by the pandemic can tap the LANDBANK facility for funding and also 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, which is fixed for three years before it is subjected to repricing. These loans 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, where they can borrow at least P100,000 and up to P3 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 does not require hard collateral.
“Since its launch at the height of the pandemic last year, 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 accelerate the country’s ongoing economic recovery,” said LANDBANK President and CEO Cecilia C. Borromeo.
The program is available until the end of 2022. — BML