The Land Bank of the Philippines (Landbank) has unveiled the P11.47-billion its Agrisenso Plus Program, designed to offer lower interest rates and simplify the loan process for the agriculture sector.
An enhanced version of Landbank’s existing initiative called Agrisenso, the new lending program rolled out in Candaba, in cooperation with the state-run financial institution’s partners from both the public and private sectors.
“Through strategic collaborations with public and private partners, we are complementing accessible credit with insurance benefits, capacity-building and other interventions to boost productivity, enhance income, drive sustainable growth and contribute to national food security,” Landbank president and CEO Lynette Ortiz said in a statement over the weekend.
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Of the P11.47 billion allocated for this loan program, P1.47 billion was raised from the penalties paid by other banks for noncompliance with The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022.
Landbank said Agrisenso Plus is aimed at 10,000 small farmers, fishers and agrarian reform beneficiaries (ARBs).
The loan program expanded its scope to cover many beneficiaries such as small fishers; micro, small and medium enterprises involved in the agricultural value chain; and agriculture graduates from a government-sponsored or endorsed program within three years after graduation.
The program offers a fixed interest rate of 4 percent per year for small farmers, fishers and ARBs while setting an interest rate of between 6.5 percent and 7.5 percent for other borrowers.
Also, large enterprises and anchor firms lending to their partner small farmers and fishers and their cooperatives and associations, as well as ARBs and agrarian reform beneficiary organizations may enjoy a concessional interest rate with a 0.5-percent discount.
Not required
Further, Agrisenso Plus reduced the documentary requirements. Now, individual farmers no longer need to present purchase orders.
Farmers in irrigated areas will no longer be required to secure endorsements from irrigators’ associations.
ARBs who are also rice farmers can obtain endorsements from either the Department of Agrarian Reform (DAR) or the National Irrigation Administration.
The lending program also provides free life and credit life insurance to small farmers, fishers and ARB borrowers, along with training and capacity-building programs for eligible borrowers.
Landbank partnered with the Department of Agriculture, the DAR, Agrea Agricultural Communities International Foundation Inc., SariSuki, Kita Agritech and TAO Foods for this financing program.
Interested borrowers can secure financing through the Agrisenso Plus Program at any Landbank lending center or branch or by calling its customer service hotline. INQ