Landbank starts paperless salary loan facility

MANILA, Philippines - The Landbank Mobile Loan Saver (LMLS) facility has already generated over 270 sign-ups from government offices, with a combined employee base of approximately 120,000, in just a few weeks into the market.

The LMLS is the country’s first paperless and fully electronic salary loan with automatic savings and insurance facility.

It was launched by state-owned Land Bank of the Philippines (LBP) and Smart e-Money Inc. (SMI), the financial services subsidiary of wireless leader Smart Communications Inc.

Government employees can start availing of the service during the first phase of LMLS’ commercial rollout.  

This will be expanded to include workers from the private sector during the second phase of the rollout to be launched in September.

The 270 government offices comprised of national government agencies, local government units (LGUs), and government-owned and -controlled corporations (GOCCs).

SMI and the LBP are conducting a nationwide caravan to formally introduce the service to government agencies and their employees.  

It kicked off last Aug. 8 at the PICC Plenary Hall for the Manila and Luzon leg coinciding with LBP’s 51st foundation anniversary.  

A similar event was likewise held in Cebu for the Visayas last Aug. 12. Last stop would be in Davao for Mindanao this September.

Smart chief wireless advisor and SMI president and chief executive officer Orlando B. Vea said the socially innovative financial service combines the pervasiveness of the mobile phone with the extensive banking reach of LBP especially in the countryside in pushing for a program for financial inclusion.

“Borrowing is a double-edged sword.  Done responsibly, it can help bridge for much-needed help such as education, health-care, housing, entrepreneurship endeavors, or investments for the future.  

But distress borrowing can push households into situation of persistent financial difficulties,” Vea added.

For her part, LBP president and chief executive officer Gilda Pico said there is nothing more powerful than a collective effort pulled by a common vision and a noble goal.  

“The Landbank Mobile Loan Saver is a product of our thrust to innovate how we do things.  We help you grow,” Pico added.