Experience Effortless Banking


I-RESCUE BUS Lending Program


The worsening traffic and public transport conditions require bold and transformative solutions which likewise need huge funding to support public transport operators especially during the period of pandemic where social distancing protocol has to be observed which in turn translates to reduction by half the public utility vehicles’ carrying capacity per trip.

With route rationalization and franchise consolidation, operators shall become more financially viable as the number of trips will increase from faster turn-around of buses that will consequently result to decreased maintenance costs for each unit and will likewise offset the negative impact of reduced carrying capacity. As public transport becomes more reliable, travel time can also be forecasted and pre-determined that may entice commuters using private cars to patronize public transportation.


The program aims to provide financing to Public Utility Bus (PUB) operators for the acquisition of modern PUBs.


Public transport cooperatives or corporations who are members of the consortium selected for the Metro Manila Bus Modernization Program.


  1. Registered with Cooperative Development Authority (CDA) or Securities and Exchange Commission (SEC)
  2. Holder of Certificate of Public Convenience (Franchise)
  3. With no adverse findings on Credit Information/Background Investigation
  4. With bus terminals and garages


Acquisition of PUBs that comply with the standards set by the DOTr.


Credit Facility

Term Loan

Availability Period

Loan shall be available until December 31, 2021

Loanable Amount

Eighty percent (80%) of the acquisition cost of the PUB or the repayment capacity of the borrower, whichever is lower



At least 20% of the acquisition cost of the bus unit

Repayment Term

  • Equal monthly interest amortization during the grace period


  • Equal monthly principal and interest amortization after the grace period

Loan Tenor

Based on cash flow but not to exceed seven (7) years inclusive of the 2-year grace period on principal

Interest Rate

Fixed at 5% per annum (p.a.) for the first three (3) years regardless of the credit rating of the borrower subject to annual repricing thereafter based on the borrower’s applicable credit rating spread over BVal rate at the time of repricing but  should not be lower than 5.0% p.a.

Penalty                         for Loan Default

24% p.a.

Other Fees

All standard fees and charges shall apply

Mode of Release

  • Letter of Guarantee shall be issued to supplier/dealer/ manufacturer upon loan approval


  • Supplier/dealer/manufacturer shall be required to open a deposit account with LANDBANK where loan proceeds shall be credited directly

Loan Collection

  • Borrower shall be required to open a LANDBANK Debt Service Reserve Account (DSRA) with maintaining average daily balance of not less than the equivalent of two (2) months amortization


  • Monthly amortization shall be paid through auto-debit from the borrower’s DSRA


  • Registered Chattel Mortgage
  • Registered Real Estate Mortgage (REM)
  • Hold-out on deposits

Other Conditions

  1. Comprehensive insurance of mortgaged vehicle must be coursed through LBP Insurance Brokerage Inc.
  2. Any change or amendment to the specifications of the PUB may be allowed provided LANDBANK is notified in advance of such change and that the cost shall not exceed the approved amount.


    1. Pre-processing
      1. Accomplished application form;
      2. Copy of corporate/cooperative registration papers from SEC/CDA;
      3. Board resolution to borrow from LANDBANK;Copy of BIR registration with Tax Identification Number (TIN) and Social Security System registration;
      4. Certified list of officers, directors, major shareholders with attached resume including bank dealings and TIN; and
      5. Audited financial statements (FS) for the last three (3) years plus current year interim FS.
    1. Pre-release
      1. Certified true copy of Certificate of Public Convenience (franchise);
      2. Certification from supplier that the PUBs to be purchased are compliant with the standards set by DOTr;
      3. Sales contracts, quotations and invoices from bus dealer or manufacturer;
      4. Registered REM duly encumbered in favor of LANDBANK; and
      5. Certification from dealer or manufacturer of the availability of spare parts and after sales support services.
    1. Post-release
      1. Certified true copy of Provisional Authority (PA) to operate PUB not later than five (5) working days after issuance of such document;
      2. Original copies of Official Receipt and Certificate of Registration duly encumbered in favor of LANDBANK under the name of the PUB operator within 10 working days from date of loan release;
      3. Registered Chattel Mortgage on the PUB within 10 working days from date of loan release; and
      4. Comprehensive insurance coverage of PUBs duly endorsed in favor of LANDBANK within 10 working days from date of loan release.

What are the other Business Loans?

Click here to redirect to Business Loans

I want to know more

Customer Care Hotline
(+632) 8 405-7000
PLDT Domestic Toll Free
Email Address

Where to find a LANDBANK Lending Center?

Click here to redirect to LANDBANK Lending Centers