Landbank launches new loan facility for payroll clients

MANILA, Philippines - Land Bank of the Philippines has launched a new loan facility Landbank Mobile LoanSaver for companies that maintain payroll account with the bank.

Landbank president and CEO Gilda Pico said this product, the country’s first paperless, fully electronic salary loan,  is specifically being offered to assist employees with their financial needs and help them recover from damages caused by natural calamities like the recent Typhoon Glenda.

Pico said the loan would carry very low interest rate.

 “Qualified availers can borrow up to P1 million with minimal monthly interest rate of 0.83 percent per month, and a repayment period of up to three years,” she said.

 “Approval of loan application under the Landbank Mobile LoanSaver is as fast as three banking days,” she added.

In partnership with Smart e-Money, Inc., the Landbank Mobile LoanSaver aims to provide an accessible, quick, and easy loan facility for employees in companies with payroll account with Landbank. 

It also has an auto-debit feature which lets availers build their savings. 

 “We at Landbank recognize the needs of our customers, so we see to it that we devise responsive facilities for them,” Pico said.

Pico said the Landbank Mobile Loan Saver is indeed an innovation which provides greater banking convenience that transforms the bank’s service delivery to its clients.

 “Companies can inquire with their respective LANDBANK servicing branch on how to make this loan facility available to their employees,” she said.

Landbank has been recognized for granting loans to priority sectors which comprise small farmers/agrarian reform beneficiaries and fishers (SFFs) and their associations, microenterprises and SMEs, agri- and aqua-businesses, agri-aqua related projects of LGUs and GOCCs, communications, transportation, housing, education, health care, environment-related projects, tourism, and utilities. 

As of March 31, 2014, Landbank’s outstanding loans to its priority sectors reached P251.5 billion, representing 81 percent of its total regular loan portfolio of P310.9 billion.

This is so far the highest recorded share of loans to priority sectors against the total loan portfolio, a five percent increase from the average 77 percent in the past three years. The amount is also 20 percent higher than the P209.1 billion in loans extended as of the same period last year. 

Landbank’s outstanding loans to small farmers and fishers increased by nine percent to P30.7 billion from P28.1 billion last year. Loan releases to these sectors reached P11.4 billion in the first quarter, 47 percent higher than the P7.7 billion released in the same period last year. 

These loans were channeled through 508 farmer and fisher cooperatives, 114 countryside financial institutions and 123 irrigators’ associations, benefiting 163,482 SFFs.

Outstanding loans to micro-enterprises and SMEs in turn grew by 31 percent to P43.4 billion from P32.8 billion last year. Of this amount, P6.1 billion were lent to microenterprises and P36.9 billion to SMEs. Outstanding loans to LGUs reached P43.4 billion.