Landbank allots P30B for rehab efforts

MANILA, Philippines - State-run Land Bank of the Philippines is setting aside P30 billion to support the government’s efforts in helping those who would need financial assistance to rehabilitate the calamity-stricken areas.

Landbank president and CEO Gilda Pico said this lending facility will specifically be allotted to aid rehabilitation efforts and help victims recover from destruction brought about by  the recent natural calamities.

The fund facility would be coursed through Landbank’s Calamity Rehabilitation Support (CARES) program.

“This is in support of the government’s continuing effort to restore economic and social activities and accessibility in calamity-affected areas,” Pico said. “Through this program, Land Bank helps those gravely affected by typhoons, floods, earthquakes, and other calamities get back on their feet and rebuild their lives.”

Under the CARES program, Pico said existing customers may avail of loan restructuring.

Short-term loans may be extended up to a maximum of three years, inclusive of a maximum of one-year grace period on principal payment. For term loans, tenor can be extended for additional three years over the remaining term of the loan at the time of calamity, with a maximum grace period of three years on principal payment.

Meanwhile, both existing and new customers may also avail of rehabilitation credit programs. Eligible borrowers include LGUs, home buyers, small and medium enterprises (SMEs), cooperatives and NGOs, and countryside financial institutions (CFIs).

LGUs may avail of loans for repair of existing facilities or equipment and construction or acquisition of new facilities or equipment.

Loanable amounts depend on the actual need of the project or up to 85 percent of the project cost, whichever is lower, but should be within the LGU’s net borrowing capacity. Interest rate is fixed at six percent per annum for 10 years and 6.5 percent for 15 years.

Meanwhile, home buyers may avail of loans under the Landbank CARES - Lingkod para sa Pabahay (LINGAP) program for repair of existing housing units or construction or purchase of new ones at a fixed interest rate of five per annum for the first year and six percent per annum, fixed for the second to fifth year. The interest rate shall either be fixed or variable based on less than one percent of the regular rate but such rate shall not fall below six percent per annum.