Rice farmer Cristine T. Almero works on her 2.33-hectare rice field in Pilar, Bohol to support the financial needs of her family. She is one of the 604 small rice farmers in Bohol who availed of the low-interest Sikat Saka Program of the Department of Agriculture (DA) and Land Bank of the Philippines (LANDBANK)
PILAR, Bohol – Unhappy and lonely working abroad, 38-year-old Cristine T. Almero decided to return to her hometown of Pilar to make a living by growing palay on the 2.33-hectare rice field that she inherited from her parents.
But just like other small farmers in town, Almero once fell prey to informal lenders who charge high rates of 7% to 10% per month. But all that changed when she and other farmers availed of the Sikat Saka Program of the Department of Agriculture (DA) and Land Bank of the Philippines (LANDBANK), which offers low-interest loans.
“Noong wala pang Sikat Saka, kung saan-saan kami humihiram ng pera pambili ng feeds, panggastos sa palayan, pangtanim, at labor. Kulang talaga yung tubo kasi ibabayad lang sa interes,” said Almero, who, like small farmers like her, need timely and affordable credit support every cropping cycle to finance their palay production.
Through the assistance of LANDBANK, Almero currently enjoys reduced interest rate of 0.75% per month under the Sikat Saka Program. The low rate is a result of her good payment record for loans she obtained from the Program starting in 2014, at an initial interest rate of 1.25% per month – still a relatively low borrowing rate than those offered by informal lenders.
Since she joined the formal credit system, Almero said her income has increased to about 50% more every cropping cycle, providing a better life for her family.
“Malaki ‘yung naitulong. Nakaipon na kami, nagkaroon kami ng savings, at nakabili kami ng second-hand na sasakyan. Gumiginhawa ang buhay namin, hindi na kami nangungutang dun sa labas. Tsaka nakakakain na kami ng maayos,” Almero shared.
Aside from low interest rates, Almero also benefits from the support services of Sikat Saka Program partner-agencies. These include market support from the National Food Authority (NFA), free irrigation services from the National Irrigation Administration (NIA), full crop insurance premium subsidy from the Philippine Crop Insurance Corporation (PCIC), and training courses on credit worthiness and financial literacy facilitated by the DA’s Agricultural Training Institute (ATI).
“Gusto kong magpasalamat sa LANDBANK dahil malaki ang naitulong nila sa aming mga farmers. Sana magpatuloy pa sila sa pagtulong samin,” Almero added.
Almero is only one of the 604 small rice farmers in Bohol who have availed of the Sikat Saka Program. And just like her, majority of these farmer-borrowers are already enjoying 0.75% interest rate per month for their loans.
The Sikat Saka Program has helped increase palay production in the province of Bohol, particularly in areas under the Bohol Integrated Irrigation System. For the past couple of years, the province was able to contribute a substantial share to the region’s palay production, making it the “Rice Granary of Central Visayas.”
Launched in 2012, the Sikat Saka Program provides a loan of up to P50,000 per hectare for small rice and corn farmers tilling at least half a hectare, but not exceeding five hectares of land, and are not members of LANDBANK-accredited cooperatives, which makes it difficult for them to secure loans from other financial institutions.
For more details about the Program’s features, eligibility and application requirements, 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.
LANDBANK grants 60-day timeout on loan payments
To continue helping clients cope with the impact of the COVID-19 pandemic, the Land Bank of the Philippines (LANDBANK) is granting a two-month grace period on loan and credit card payments. LANDBANK is providing a one-time 60-day moratorium for all existing, current, and outstanding loans falling due from September 15 until December 31, 2020, without incurring interest on interests, penalties, fees, or other charges. This is in support of the implementation of Republic Act No. 11494 or the “Bayanihan to Recover as One (BARO) Act.” Credit card transactions made, including fees or charges incurred, prior to September 15 shall also be covered by the moratorium. For credit card payments, any unpaid balance from transactions and fees or charges shall not incur interest or finance charges during the mandatory grace period. However, after the end of the applicable grace period, the said unpaid balance shall incur interest or finance charges if not paid in full on new due date. “LANDBANK understands how providing loan relief can significantly support our clients during these difficult times. We look to ease their financial concerns as we continue navigating the challenges of this pandemic,” said LANDBANK President and CEO Cecilia C. Borromeo. LANDBANK will apply the 60-day grace period automatically, without the need for borrowers and credit card holders to apply or request for the relief measure. However, for LANDBANK credit cardholders with Automatic Debit Arrangements (ADA) for payments, they must inform the Bank that they would like to avail of the relief. The grace period shall commence from the payment due date of loans, with principal and/or interest, including amortizations, falling due from September 15 until December 31, 2020. Meanwhile, credit card transactions made on and after 15 September are no longer covered by the BARO Act and shall continue to incur interest or finance charges if not fully paid on or before its original due date. LANDBANK previously granted a similar grace period for loan payments falling due from March 18 to June 30, 2020, in support of Republic Act No. 11469 or the “Bayanihan to Heal as One Act.” Loan accounts that benefitted from this grace period will also benefit from the BARO Act if it remains an existing, current, and outstanding loan as of September 15, 2020. Meanwhile, fund transfer fees are still waived for InstaPay and PESONet transactions until December 31, 2020. For more information on LANDBANK’s 60-day grace period for loan and credit card payments, please visit the LANDBANK website at www.landbank.com/faqs.LEARN MORE
LANDBANK’s online accounts opening breaches 1-M mark
The boom in digital banking being experienced in the country as a result of the Covid-19 pandemic has resulted in an increase in online account opening and other digital banking services, said the Land Bank of the Philippines (LANDBANK). The Bank has recorded 1,039,926 accounts opened online through its Digital Onboarding System (DOBS), as demand for online banking services as well as safer and more convenient ways to transact with banks continue to surge. About 492,156 accounts were opened from January to September 2020, including 11,972 for Overseas Filipino Bank accounts—LANDBANK’s digital-only branchless bank subsidiary. “This milestone is a welcome development for the Bank as it proves that Filipinos are responsive to the improvements and innovations that we implement, designed to provide them additional channels for their banking needs, as well as a more convenient banking experience in this digital age,” said LANDBANK President and CEO Cecilia C. Borromeo. LANDBANK DOBS, a pioneering web application among Philippine banks, was launched in 2019 with the goal of reducing the account opening time from 30-45 minutes to only 10 minutes. It also simplifies the account enrolment process for individuals and institutional clients. Aside from hassle-free account opening, DOBS also provides automatic enrollment to LANDBANK iAccess for internet banking, the LANDBANK Mobile App for convenient banking transactions through their smartphones, and the LANDBANK Link.BizPortal for payment of bills, products and services to the enrolled merchants in the system. The system also allows existing DOBS account holders to update their information through the system, a move to decongest client visits in Bank’s branches, especially in this time of pandemic. “This is only the start for the Bank’s digitization agenda as we also look forward to streamlining other Bank processes using new technologies such as loan application, among others,” President Borromeo said. For this banking innovation, LANDBANK has been recognized as “Asia’s Most Inclusive Bank” by the Financial Insights Innovation Awards 2019, and was conferred as “Digital Trailblazer in Financial Services” by the Bangko Sentral ng Pilipinas (BSP). Access the DOBS through the LANDBANK’s official website (www.landbank.com) or through the Digital Corner of selected LANDBANK branches dedicated for walk-in clients who wish to access the system. Watch the tutorial video on how to apply thru DOBS via the LANDBANK YouTube Channel (www.youtube.com/c/LANDBANKOfficial) For more information about LANDBANK’s DOBS, clients may contact the nearest open LANDBANK 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.LEARN MORE
Institutional investor wins Premyo Bonds Rewards third-quarter grand prize
(first row) National Treasurer Rosalia V. De Leon (right) and Arden Botanical Estate sales and marketing head Rowena Espiritu (left), award P1 million and a condo unit from Megaworld Corporation to Premyo Bonds Third Quarter Rewards Draw grand winner National Power Corporation (NPC) Provident Fund, represented by NPC Provident Fund Chairman Alexander P. Japon (center). They are joined by (2nd row, left to right) Deputy Treasurer Atty. Erwin D. Sta. Ana, LANDBANK Trust Banking Group First Vice President Lolita M. Almazar, Deputy Treasurer Sharon P. Almanza, and Deputy Treasurer Atty. Gisela F. Lood. The National Power Corporation (NPC) Provident Fund received the cash and non-cash rewards for the “Premyo Bonds Para sa Bayan” (Premyo Bonds) Third Quarter Rewards Draw promo of the Bureau of the Treasury (BTr) and partner institutions. The ceremonial turnover—which was held on October 2 at the Ayuntamiento Building, Intramuros in Manila—was led by National Treasurer Rosalia V. De Leon, Deputy Treasurers Atty. Erwin D. Sta. Ana, Atty. Gisela F. Lood and Sharon P. Almanza, and Land Bank of the Philippines (LANDBANK) Trust Banking Group First Vice President Lolita M. Almazar. They were joined by Rowena Espiritu, sales and marketing head of Arden Botanical Estate, Megaworld Global Estate, Inc. The NPC Provident Fund—which made its Premyo Bond placements through LANDBANK—received a P1-million cash prize and a condominium unit from Megaworld Corporation. The rewards were accepted for the institution by NPC Provident Fund Chairman Alexander P. Japon. The Premyo Bonds are deemed one of the safest and affordable short-term investment products when it was offered from November 25 to December 13, 2019. Issued by the National Government, the bonds were offered at a minimum denomination of P500 with a fixed interest rate per annum of 3%. A Premyo Bond investment of P500 entitles the investor to one raffle ticket. In his video message during the Third Premyo Bonds Draw, Finance Secretary Carlos G. Dominguez urged the raffle winners to reinvest their money in government bonds to help support the nation’s fight against the COVID-19 pandemic. The Premyo Bonds were first offered to the public last year by the National Government through the BTr, with LANDBANK as one of the Joint Lead Issue Managers. Other Joint Issue Managers were private banks BDO Capital and Investment Corp., China Bank Capital Corp., and First Metro Investment Corp. The Issue Managers also served as Selling Agents. Aside from the grand winner, a total of 115 Premyo Bond investors also won cash prizes, including 100 3rd cash reward winners of P20,000 each, and 15 2nd cash reward tier winners of P100,000 each. The Fourth Quarter Rewards Draw for the Premyo Bonds will be held on December 18, 2020.LEARN MORE