The Landbank of the Philippines (LBP) offers various financial products and services for the development of different sectors in society, mainly the agricultural and fisheries sector nationwide.
LBP has three programs— Agricultural Competitiveness Enhancement Fund (ACEF) Lending Program, Sulong Saka Lending Program, and Swine Lending Program, that are willing to lend as an investment in the livelihood of fisherfolks, farmers, and Micro, Small and Medium Enterprises (MSMEs).
During the Usapang Rehiyon, a Kapihan program of PIA-Mimaropa, Landbank of the Philippines Oriental Mindoro Assistant Vice President and Head of Lending Center, asks for assistance in amplifying their lending programs to help in the development of the livelihood of our farmers, fisherfolk, small businessmen, and other sectors throughout the country that need financial support.
ACEF is a loan program that aims to help small farmers, fisherfolk, including its cooperatives and associations, and micro and small enterprises, or small businesses that focus on agriculture. Since 2018, the Landbank and the Department of Agriculture have been implementing this in all provinces to help those who need funds for their livelihood.
It addresses the investment needs for farming, including the purchase of machinery and post-harvest facilities, to further increase the quantity and quality of their production.
This includes farmers who cultivate fields that do not exceed five (5) hectares in size. For fisherfolk who also want to borrow under ACEF, they can borrow if they have a boat with a capacity of three (3) tons, or if they have a fish cage that does not exceed 400 square meters in size.
Aside from farmers and fisherfolk, micro and small enterprises, or small businessmen, who have assets not exceeding P15 million in total can also borrow from LBP.
To fully assist borrowers, the Landbank is willing to lend under ACEF up to 90% of the total cost of the project, but not exceeding P1 million for farmers and fishermen, P5 million for cooperatives and associations, and micro and small enterprises. The ACEF Lending Program has a low and affordable interest rate of 2% per year, and it is fixed for the total term of the loan.
Under the Sulong Saka Program, small farmers and fishermen, their cooperatives and associations, Small and Medium Enterprises or SMEs, Large Agribusiness Enterprises, LGUs, and non-governmental organizations (NGOs) can borrow funds. Sulong Saka’s interest is affordable at 5% per annum. This loan can be used as working capital, purchase of assets such as machinery and other equipment, and construction of facilities for production.
On the other hand, Swine Lending Program can be availed by commercial hog raisers who run commercial piggeries. The Landbank is also partnering with the Department of Agriculture in the implementation of this program throughout the country so that it can respond more quickly to the needs of the hog industry in the Philippines.
Up to 80% of the project cost or financing requirements can be borrowed, and the remaining 20% will be the borrower's equity. Its interest is only as low as 3% per annum, and it is fixed for the first three years.
The Landbank of the Philippines (LBP) is a government financial institution that partners with the government in promoting development in rural and urban areas across the country. (GATS/PIA MIMAROPA)
