Landbank targets more lending conduits

MANILA, Philippines – State-run Landbank of the Philippines targets to increase the number of its lending conduits to expand its reach to micro-entrepreneurs, after it has approved P9.2 billion in loans for the first nine months.

Landbank said it is now in talks with cooperatives, rural banks, non-government organizations and finance companies in four provinces – Batanes, Kalinga, Apayao and Dinagat Island – where Landbank has no lending conduits for the sector.

“Before the year ends, we will have conduits in these four remaining areas to complete the mechanism, particularly servicing micro-entrepreneurs in all 81 provinces,” Landbank officer-in-charge Cecilia Borromeo said.

Currently, Landbank has 52 micro-finance institutions where credit facilities for micro-enterprises are being coursed.

Landbank approved P9.2 billion in loans in the first nine months, benefitting more than 635,000 sub-borrowers in 77 provinces.

Landbank taps 17 cooperatives, 12 finance companies, 12 non-government organizations and 11 rural banks nationwide as lending conduits.

The conduits lend to micro-entrepreneurs engaged in various economic activities such as hog farming, duck and poultry raising, retail sale of various items, and tricycles and other land transport operation.

Furthermore, Borromeo said Landbank is aggressively looking for ways to reach out to more micro-entrepreneurs and bring them under the umbrella of formal lending.

“We have long recognized the need to support micro-enterprises as these are among the key drivers of the rural economy. We continue to provide this with credit facilities that are responsive to their economic activities,” she said.

Landbank is the biggest lender to micro, small and medium enterprises among government financial institutions.

It is also in partnership with the departments of Trade and Industry, Agriculture, Agrarian Reform, and Science and Technology in supporting the government’s thrust of providing credit assistance to micro-entrepreneurs and small farmers and fisherfolks.