LandBank launches lending programs for SMEs, MFIs, co-ops hit by COVID-19

State-run Land Bank of the Philippines is offering a lending program to aid small and medium enterprises (SMEs), microfinance institutions (MFIs) and cooperatives recover from the adverse effects of the coronavirus disease 2019 (COVID-19) crisis.

The state lender’s Interim REhabilitation Support to Cushion Unfavorably-affected Enterprises by COVID-19 (I-RESCUE) lending program aims to provide assistance through credit and loan restructuring under more flexible terms and conditions.

Interested SMEs, MFIs and cooperatives may borrow up to 85% of their actual need for working capital, at an interest rate of 5% per annum, payable up to a maximum of five years, with grace period on the principal payment, the LandBank said in a statement Wednesday.

The I-RESCUE program also offers restructuring of existing loan account via additional loan, extended repayment period, or through other means or combination of means, the lender said.

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 hardly hit by the COVID-19 pandemic for rehabilitation support. We hope that the I-RESCUE Lending Program will help restore economic and social activities in our country, especially in the countryside,” LandBank president and CEO Cecilia Borromeo said.

The LandBank I-RESCUE Lending Program is in support of Republic Act No. 11469 or the “Bayanihan to Heal as One Act,” which ensures the provision of timely and affordable credit to sectors affected by COVID-19, including small farmers and fishers.

Interested borrowers may contact the nearest open LandBank Lending center or branch nationwide, or call its customer service hotline at (02) 8-405-7000 or at PLDT domestic toll free 1-800-10-405-7000. — Ted Cordero/RSJ, GMA News