The Land Bank of the Philippines (Landbank) has approved loans totaling P6.95 billion for 227 borrowers composed mostly of micro, small and medium enterprises (MSMEs) and cooperatives that are affected by the impact of the COVID-19 pandemic.
Under the I-RESCUE (Interim REhabilitationSupport to Cushion Unfavorablyaffected Enterprises by Covid-19) Lending Program, Landbank has released P5.28 billion of the total P6.95 billion for the benefit of208 borrowers, composed of 167 MSMEs, 34 cooperatives, four microfinance institutions (MFIs), and three large corporations as of end-January 2021.
Launched in April 2020 at the height of strict quarantinelockdowns, the I-RESCUE Lending Program was designed in support of Republic Act 11494 or the “Bayanihan to Recover as One Act (Bayanihan 2) ”to provide credit and loan restructuring under more flexible terms and conditions to MSMEs,MFIs, and cooperatives.
Landbank recently expanded the coverage of the program to allow more borrowers affected by the pandemic to avail of credit and loan restructuring assistance.
The I-RESCUE Lending Program now allows micro enterprisesand large corporations toborrow a maximum of 85 percent of their emergency or permanent working capital requirement. Terms are set at an affordable interest rate of 5 percent per annum for three years, subject to annual re-pricing thereafter, and payable up to 10 years with a maximum of two years grace period on the principal repayment.