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HEAL Lending Program

Government and even private banks need to provide the necessary funding requirements to help minimize the adverse economic and health impacts of the COVID-19. LANDBANK, through the HEAL (Help via Emergency Loan Assistance for LGUs) Lending Program, will pioneer the necessary immediate response to this health crisis.


The program aims to:

1. Support the LGUs in times of extraordinary events that have unprecedented multi-dimensional effects on the health sector, on the economy, on productive capacity and, especially, on poor Filipinos; and

2. help prop up local economies, improve delivery of health services and provide humanitarian supports to the most adversely affected sectors by the LGUs. 


1. Eligibility Criteria

a. Eligible Borrowers

LGUs (Provincial, City and Municipal) including those whose Internal Revenue Allotment (IRA) are not yet with LANDBANK

b. Eligible Projects/Loan Purpose

Permanent working capital as additional source of fund for the provision of goods and services. 

2. Loan Features

Availability End Date

Up to December 31, 2020

Program Fund

P 10 Billion – (initial Internal Fund)

Loanable Amount

Based on actual request of the LGU provided the total loan exposure (including the proposed emergency loan) will not exceed the net borrowing capacity (NBC) of the LGU per Bureau of Local Government Finance (BLGF) computation

Loan Tenor

Loan maturity shall be up to maximum of five (5) years and shall be further based on LGU’s cash flow


For this purpose, other LGU projects (existing or in the pipeline) that will affect the NBC shall be considered in the computation of the tenor.

Grace Period

A maximum of one (1) year grace period on principal payment may be allowed

Interest Rate

Five percent (5%) per annum, fixed for the term of the loan

Other Fees

Standard fees and charges of the Bank shall apply

Mode of Release

Staggered or lump sum to be credited to borrower’s account maintained with LANDBANK


Monthly, quarterly, semi-annually or annually based on cash flow


Assignment of IRA up to the extent of the loanable amount

Credit Enhancer

Authority to debit account for the maturing principal and interest amortization

3. Other Terms and Conditions

a. The Bank has the option to debit the borrower's deposit account to cover any loan payment as they fall due.

b. The Bank reserves the right to withhold loan releases should there be:

1) A case filed against the LGU or its officials involving the projects to be financed;

2) Adverse findings on the project or object of financing; or Withdrawal of the Sanggunian on the authority of the Local Chief Executive (LCE) to contract this loan. 


a. Pre-processing

1) Sanggunian Resolution

a) Authorizing the LCE to borrow funds, negotiate and enter into a loan agreement with LBP;

b) Authorizing the LCE to sign, endorse loan documents, mortgages, deed of assignments, agreements, notes and other documents pertaining to the loan obtained from LBP; and

c) Approving the projects to be financed 

2) Approved/supplemental budget for the current year; and

3) List of elected officials and key officers, if not yet available on file 

b. Pre-release

1) Sanggunian Ordinance



LCE/Approving Authority











a) Approving all previous representations, acts, warranties and all other terms and conditions of the loan;

b) Authorizing the assignment of the IRA and other income, revenues and collection as collateral/security to the loan obtained and declaring them to be available and not restricted by law or its other obligations (if not yet on file and for LGUs whose IRAs are not yet with LANDBANK);

c) Directing the LGU Treasurer and Accountant to enter the loan in the appropriate books of the LGU; 

d) Designating the LBP as the LGU's official depository bank for IRA and major depository bank for its other deposits, revenue and collections which designation shall not be revoked while the loan obligations remain outstanding and directing the LGU Secretary to provide a copy of this Resolution to DBM or other IRA administering office (if not yet on file and for LGUs whose IRAs are not yet with LANDBANK); 

e) Appropriating the amount for loan repayment in the LGU's annual budget until the loan, interest and other charges are fully paid; 

f) Authorizing LBP to deduct for set-off and/or deduct amounts from general funds of the LGU with LBP and apply the same to the payment of the loan or any portion thereof, or interests and penalties thereon as may be deemed necessary by the LBP; and 

g) Waiving the confidentiality

2) BLGF Certificate of NBC;

3) Monetary Board Opinion;

4) Provincial validation of the municipality/city ordinance, if applicable;

5) Certification by the Budget Officer, Accountant and Treasurer noted by the LCE that:

a) the amounts for the repayment on principal, interest, and other charges on the loan have been fully appropriated; 

b) the sources of repayment are available and not restricted by law or other obligations;

c) the contractual obligations shall be or has been entered into the appropriate books of accounts of the LGU;

d) the loan shall be used exclusively to finance the eligible purpose of the loan; and

e) the Municipal/City/Provincial Government of LGU shall annually submit to LANDBANK a certification on the said appropriation.

6) Joint Certification by the Bids and Awards Committee Chair and by the LCE that the LGU has complied with RA 9184 as well as Commission on Audit rules and regulations; and

7) Promissory Note with Deed of Assignment of the IRA

c. Post-release

The LGU shall submit annually a certification that the proposed sources of repayment are available and not restricted by law and its obligations are appropriated in their respective budget.

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