The Land Bank of the Philippines (LandBank) is offering a new lending program to help small and medium enterprises (SMEs), microfinance institutions (MFIs) and cooperatives recover after the island of Luzon was brought under enhanced community quarantine (ECQ) due to the coronavirus disease 2019 (Covid-19) pandemic.
Through the lending program, LandBank said it will provide assistance through credit and loan restructuring under more flexible terms and conditions.
Interested SMEs, MFIs and cooperatives may borrow up to 85 percent of their actual need for working capital, at an affordable interest rate of 5 percent per annum, payable up to a maximum of five years, with grace period on the principal payment.
The program, which LandBank dubs “i-Rescue,” likewise, offers restructuring of existing loan account via additional loan, extended repayment period, or through other means (or combination of means). The loan may be extended up to a maximum of 10 years, with up to three years grace period on principal and up to one-year grace period on interest, depending on cash flow.
“LandBank stands ready to respond to the financial needs of enterprises hard-hit by the Covid-19 pandemic for rehabilitation support,” LandBank President and CEO Cecilia C. Borromeo was quoted in a statement as saying. “We hope that [this] program will help restore economic and social activities in our country, especially in the countryside.”
The Landbank said the new lending window is in support of Republic Act 11469, which ensures the provision of timely and affordable credit to sectors affected by Covid-19, including small farmers and fishermen.