Land Bank of the Philippines (Landbank) has raised the loanable fund for local businesses negatively affected by the new coronavirus disease 2019 COVID-19 pandemic to P50 billion.
Landbank in April raised to P20 billion the fund of I-RESCUE (Interim REhabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19) Lending Program to P20 billion from an initial P10 billion when it was launched in April last year.
The Landbank I-RESCUE Lending Program is accessible as credit and loan restructuring assistance to businesses whose operations have been severely affected by the pandemic, offering more flexible loan terms and conditions than the market provides.
As of May 31, 2021, Landbank has approved P20.95 billion worth of loans for I-RESCUE Lending Program, benefitting 460 borrowers, comprised of 310 micro, small and medium enterprises (MSMEs), 83 cooperatives, 62 large corporations, and five microfinance institutions (MFIs), according to Cecilia Borromeo, Landbank president.
Of the amount, 93 percent or P19.53 billion has already been released.
“Since its launch at the height of the pandemic last year, the I-RESCUE Lending Program has gained wide acceptance from borrowers striving to keep their businesses afloat amid the ongoing crisis. Rest assured that Landbank will continue to provide responsive credit assistance to support key sectors and contribute to accelerate the country’s ongoing economic recovery,” Borromeo added.
Under the I-RESCUE Lending Program, eligible borrowers may borrow up to 85 percent of their emergency or permanent working capital requirements, at an interest rate of 5 percent per annum for three years, subject to annual re-pricing after that. It is payable up to 10 years with a maximum of two years grace period on the principal repayment.
I-RESCUE Lending Program also offers a sub-credit facility for MSMEs and cooperatives, as well as self-employed individuals duly registered with the Department of Trade and Industry and the Securities and Exchange Commission, classified to be critically affected by the ongoing pandemic.
“Qualified borrowers may borrow a minimum amount of P100,000 or up to 85 percent of the actual permanent working capital requirement but not exceeding P3 million, at a lower fixed interest rate of 3 percent per annum, with no hard collateral requirement, and payable for up to three years,” the bank said in a statement.
For existing Landbank clients, the program provides loan restructuring assistance via additional loan and extended repayment period, or a combination of means to rehabilitate and restore operational cash flow.
The I-RESCUE Lending Program is available until Dec. 31, 2022, the Landbank said.
