CALOOCAN CITY, Feb. 28 (PIA) -- The Land Bank of the Philippines (LandBank) has approved loans totaling P6.95 billion for 227 borrowers composed mostly of micro, small and medium enterprises (MSMEs) and cooperatives that are affected by the impact of the COVID-19 pandemic.
Under the I-RESCUE (Interim REhabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19) Lending Program, LandBank has released P5.28 billion of the total P6.95 billion for the benefit of 208 borrowers, composed of 167 MSMEs, 34 cooperatives, four (4) microfinance institutions (MFIs), and three (3) large corporations as of end-January 2021.
Launched in April 2020 at the height of strict quarantine lockdowns, the I-RESCUE Lending Program was designed in support of Republic Act 11494 or the "Bayanihan to Recover as One Act (Bayanihan 2)" to provide credit and loan restructuring under more flexible terms and conditions to MSMEs, MFIs, and cooperatives.
LandBank recently expanded the coverage of the Program to allow more borrowers affected by the pandemic to avail of credit and loan restructuring assistance.
The I-RESCUE Lending Program now allows micro enterprises and large corporations to borrow a maximum of 85 percent of their emergency or permanent working capital requirement. Terms are set at an affordable interest rate of 5 percent per annum for three (3) years, subject to annual re-pricing thereafter, and payable up to 10 years with a maximum of two (2) years grace period on the principal repayment.
Moreover, LandBank is currently working on expanding the I-RESCUE Program further to offer a new sub-credit facility for MSMEs, cooperatives, and self-employed individuals severely affected by the health crisis. Qualified borrowers may soon be able to borrow a minimum amount of P100,000 or up to 85 percent of their actual permanent working capital requirement, at a lower fixed interest rate of 3 percent per annum only, payable up to three (3) years.
"We are enhancing the I-RESCUE Lending Program to cover a wider range of key industries that need greater access to credit. LandBank is keeping in step with emerging requirements under the new normal in support of the country's ongoing economic recovery," said LandBank President and CEO Cecilia C. Borromeo.
Existing LandBank clients may also avail of loan restructuring via additional loan and extended repayment period or combination of means to rehabilitate and restore operational cash flow.
The LandBank I-RESCUE Lending Program is available until December 31, 2022.
Interested borrowers may contact the nearest open LandBank Lending Center or Branch nationwide or call LandBank's customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000.
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