Coop, Landbank offer loans at low interest

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    The Pangi Multi Purpose Cooperative (PAMULCO) through Landbank of the Philippines is offering members engaged in various production projects in Maitum in Sarangani Province and surrounding communities loans at low monthly interest rates to improve their yield.

    Through Landbank’s rediscounting line, PAMULCO was able to bring interest rates for members’ loans down to 12 percent per annum. The bank’s low interest rates for this type of credit facility is contingent upon financial conduits, such as rural banks and cooperatives like PAMULCO, to pass on the same beneficial low interest rates to its eligible borrower members with convenient repayment schedules.

    PAMULCO general manager Ronald Briones inspects the rice quality from the cooperative’s warehouse.
    PAMULCO general manager Ronald Briones inspects the rice quality from the cooperative’s warehouse.

    The coop charges 1 percent per month compared with 20 percent charged by loan sharks and some local traders.

    The coop’s income is given back to farmer members in the form of annual dividends and patronage refunds.

    The cooperative was also able to purchase hauling trucks and upgrade its rice mill that can now process 60 bags an hour, a step up from the 20 to 25 bags its old machinery used to churn out. In 2018, PAMULCO was able to purchase palay worth P52.42 million, most of which came from Lambayong, Sultan Kudarat.

    The coop also took care of the processing and other post-harvest requirements to market the farmers’ rice. The trucks kept raw inventory low and quick-moving, thus avoiding wastage of hard-earned palay.

    PAMULCO general manager Ronald Briones inspects the rice quality from the cooperative’s warehouse.
    PAMULCO general manager Ronald Briones inspects the rice quality from the cooperative’s warehouse.

    Through the years, PAMULCO and Landbank have been helping farmers gain continuous access to ready credit to meet their daily needs, allowing them to cope and recover from the challenges in farming.

    PAMULCO began with only four employees in 1991 with P25,000 on hand. Operating mainly in Barangay Pangi , PAMULO today has 37 staff on the regular payroll and 809 total members. It has financed a collective estimate of around 500 hectares for palay, and 280 hectares for corn.

    This is on top of its regular agri-trading and consumer store operations that cater to its farmer-members and general public.