LANDBANK bags Karlsruhe Award for lending program for farmers

Wednesday, August 1, 2018

LANDBANK Executive Vice President Joselito P. Gutierrez and First Vice President Elsie Fe B. Tagupa receive LANDBANK’s award from Karlsruhe Lord Mayor Frank Mentrup (leftmost) and European Organization for Sustainable Development CEO Arshad Rab (rightmost) during the annual Karlsruhe Sustainable Finance Awards held as part of the annual Global Sustainable Finance Conference in Karlsruhe, Germany. (Photo Credit: Fraenkle, Press Office, City of Karlsruhe, Germany)

 

For the sixth consecutive year, LANDBANK received a Certificate of Merit at the Karlsruhe Sustainable Finance Awards, this time for its Sikat Saka Program, recognized under the Outstanding Sustainable Project Financing category.

Implemented in partnership with the Department of Agriculture, the Sikat Saka Program provides direct credit to small palay and corn farmers who are not yet members of LANDBANK-assisted cooperatives.

“This program supports the government’s campaign to boost the agriculture sector by providing credit assistance to eligible palay and corn farmers. It also forms part of our thrust to help small farmers improve their income and boost their productivity through retail lending,” said LANDBANK Executive Vice President Joselito P. Gutierrez, who received the award in a ceremony held as part of the Global Sustainable Finance Conference in Karlsruhe, Germany.

Since the program was implemented in 2012, cumulative loan releases reached P6.223 billion, benefitting 15,702 small farmers. From January to December 2017, P1.803 billion in loans was released to 3,240 small farmer-borrowers. Because of the program, the income of each farmer-beneficiary increased by roughly 80% percent per annum per hectare.

Aside from the DA, various government agencies supporting farmers, such as the National Irrigation Administration, National Food Authority, and Philippine Crop Insurance Corporation also work with LANDBANK to provide holistic services to the beneficiaries and ensure efficient credit delivery and program sustainability.

Likewise, the Agricultural Guarantee Fund Pool provides guarantee to the loans extended to Sikat Saka borrowers, thereby mitigating the risk involved in lending to the said sector. 

Among the support services offered under the program are free irrigation, full crop insurance subsidy, market support and trainings. Program beneficiaries are likewise trained on credit discipline and financial management to teach the farmers how to save, pay loans on time, and better manage their finances.

Conferred by the Global Sustainable Finance Network, the Karlsruhe Sustainable Finance Awards honors financial institutions that have significantly contributed to the field of sustainable financing.For the sixth consecutive year, LANDBANK received a Certificate of Merit at the Karlsruhe Sustainable Finance Awards, this time for its Sikat Saka Program, recognized under the Outstanding Sustainable Project Financing category.

Implemented in partnership with the Department of Agriculture, the Sikat Saka Program provides direct credit to small palay and corn farmers who are not yet members of LANDBANK-assisted cooperatives.

“This program supports the government’s campaign to boost the agriculture sector by providing credit assistance to eligible palay and corn farmers. It also forms part of our thrust to help small farmers improve their income and boost their productivity through retail lending,” said LANDBANK Executive Vice President Joselito P. Gutierrez, who received the award in a ceremony held as part of the Global Sustainable Finance Conference in Karlsruhe, Germany.

Since the program was implemented in 2012, cumulative loan releases reached P6.223 billion, benefitting 15,702 small farmers. From January to December 2017, P1.803 billion in loans was released to 3,240 small farmer-borrowers. Because of the program, the income of each farmer-beneficiary increased by roughly 80% percent per annum per hectare.

Aside from the DA, various government agencies supporting farmers, such as the National Irrigation Administration, National Food Authority, and Philippine Crop Insurance Corporation also work with LANDBANK to provide holistic services to the beneficiaries and ensure efficient credit delivery and program sustainability.

Likewise, the Agricultural Guarantee Fund Pool provides guarantee to the loans extended to Sikat Saka borrowers, thereby mitigating the risk involved in lending to the said sector. 

Among the support services offered under the program are free irrigation, full crop insurance subsidy, market support and trainings. Program beneficiaries are likewise trained on credit discipline and financial management to teach the farmers how to save, pay loans on time, and better manage their finances.

Conferred by the Global Sustainable Finance Network, the Karlsruhe Sustainable Finance Awards honors financial institutions that have significantly contributed to the field of sustainable financing.