LANDBANK extends loan restructuring, rehab loans to typhoon-affected farmers, clients in Northern & Central Luzon

Thursday, October 4, 2018

Following the recent onslaught of Typhoon Ompong (international name: Mangkhut) in several regions across Northern and Central Luzon, LANDBANK is extending loan restructuring and rehabilitation loans to individual farmers and farmers’ cooperatives to help them get back on their feet.

Initial estimates among affected LANDBANK clients approximate loans for restructuring at P300 million at the least. The Bank is continually assessing the extent of damage suffered from the typhoon in order to address clients’ financing needs and provide appropriate assistance.

“We understand how difficult it is to rebuild and recover after a calamity, which is why LANDBANK extends loan restructuring and rehabilitation loans to assist our fellow Filipinos, especially farmers, in getting back on their feet,” said LANDBANK President and CEO Alex V. Buenaventura.

 

LANDBANK CARES

Launched in 2013, LANDBANK CAlamity REhabilitation Support (CARES) Program is the Bank’s flagship calamity assistance program for existing and new clients severely affected by typhoons, floods, earthquakes or other calamities.

As of end-June 2018, total approved loans under the program reached P4.4 billion. Meanwhile, cumulative loan releases as of the same period amounted to P3.8 billion which benefited 191 borrowers. Of this amount, P1.1 billion was extended to 47 bank conduits (42 cooperatives, four countryside financial institutions (CFIs), one non-government organization or NGO) which have extended equally concessional rates to 1,830 small farmers and fishers and 4,984 microenterprises and SMEs.

The payment to existing short term loan accounts of LANDBANK customers who were affected by typhoon and other natural or man-made calamities may be restructured or extended up to a maximum of five years.

Meanwhile, term loan accounts may also be restructured for additional five years over their remaining term at the time of calamity. The five-year loan repayment terms shall be inclusive of a one-year grace period (deferred payment) on both principal and interest repayments in order to help the customers focus initially on restoration and rebuilding.

Under the Program, rehabilitation credit fund may be provided both to existing and new clients of the Bank. Cooperatives, CFIs, and NGOs may be provided with rehabilitation credit fund for their re-lending activities to small farmers, fishers, and microenterprises.

The fund may also be made available directly to small and medium enterprises and local government units for repair/rebuilding, construction and acquisition of new facilities or equipment.

Homeowners with properties damaged by calamities may likewise avail of loans for repair or relocation/construction of new houses. The credit terms and requirements under the Program are relaxed compared to the Bank’s regular loans.

 

Consistent support for farmers

To further ensure timely assistance to small farmers whose crops and livelihood were destroyed by the calamity, LANDBANK is also piloting its Accessible and Sustainable Lending (ASL) Program for Small Farmers in Isabela, Nueva Vizcaya, and Ilocos Provinces.

The ASL Farmers Program is a new loan program that seeks to help small farmers increase their productivity and income by making credit accessible at a low interest rate of 6% per annum.

The program has three modules, namely: Lending to Individual Small Farmers and through Agri-based Cooperatives/Associations; Lending through Bank-Assisted Agri-based Cooperatives/Associations; and Lending Farmers Cooperatives through Agri Corporative Corporations.

LANDBANK consistently expands its assistance to farmers and fishers through its direct lending programs and through conduits such as cooperatives and countryside financial institutions.

From January to June this year, the Bank’s loan releases to farmers and fishers in Northern Luzon under its various lending programs reached P5.9 billion. These covered Regions 1 and 2 and benefited 43,457 small farmers and fishers.