The Land Bank of the Philippines has earmarked P30 billion for its Calamity Rehabilitation Support, or Cares, program to help individuals and organizations recover from the onslaught of recent natural disasters.
Under the program, current Landbank customers may avail themselves of loan restructuring, with short-terms loans possibly being extended by up to three years, including a grace period on principal payment of up to a year.
For other term loans, the tenor can be extended for three years more over the remaining term of the loan at the time of calamity. There is also a grace period of up to three years.
Further, Landbank Cares offers rehabilitation credit programs to existing and new Landbank clients such as local government units (LGUs), home buyers, MSMEs (micro, small and medium enterprises), cooperatives and nongovernment organizations, and countryside financial institutions (CFIs).
Gilda E. Pico, Landbank president and chief executive, said in a statement the Landbank Cares initiative supports the government’s efforts to restore economic and social activities and accessibility in calamity-affected areas.
“Through this program, Landbank helps those gravely affected by typhoons, floods, earthquakes, and other calamities get back on their feet and rebuild their lives,” Pico said.
LGUs may avail themselves of loans for repair of existing facilities or equipment and construction, or acquisition of new facilities or equipment.
The amounts depend on the actual need of the project or up to 85 percent of the project cost, whichever is lower. Interest rate is fixed at 6 percent yearly for 10 years and 6.5 percent for 15 years.
Home buyers may avail themselves of loans under a subprogram dubbed “Lingkod para sa Pabahay” (Lingap) for repair of existing housing units or construction or purchase of new ones at a fixed interest rate of 5 percent for the first year and 6 percent yearly for the second to fifth year.
After that, the interest rate will either be fixed or variable but such not less than 6 percent yearly.
SMEs that need additional working capital or financial assistance for repair of existing facilities and acquisition of new ones may avail of loans under the the Kaagapay sa Negosyo (KaNegosyo) subprogram at a fixed 6 percent yearly.
Cooperatives and NGOs may avail themselves of livelihood financing to augment their credit fund for on-lending to small farmers and fisherfolk (SFFs) or MSME members and sub-borrowers. Another option is home lending to provide them with additional credit fund for the housing loan needs of their borrowers.
For CFIs, they may avail themselves of loans—at a fixed 4.5 percent yearly—to augment their working capital for on-lending and rediscounting to borrowers.