LandBank business loans for march 2023

The Landbank business loan program can assist you in obtaining the additional finance, increased output, or operational growth you require for your agribusiness.

Types of Landbank business loans

General, small or medium enterprises loans

With the help of its loan initiatives, entrepreneurs are provided the assistance they need to launch a new firm or grow an existing one, thanks to its presence in all 81 provinces.

Depending on the specific loan type under the general/small and medium enterprises loans, loanable amounts may be up to 80% of the actual need provided to the total loan. The loan term could be up to 5 years, with a maximum of 2 years grace period on the principal payment, which will depend on the cash flow. The annual interest rate starts at 5%, and there are also options that provide fixed interest rates for the first 3 years.

The list of loans offered by the bank under this category are:

• Term loan facility.
• Working capital and Landbank liquidity support facility.
• Exporters' production support facility.
• Farm tourism financing program.
• Emerging FILIPINA lending program.
• Franchising lending program.
• Lending program for former rebels.
• PFI-ACCORD.
• SPEED PUV loan program.
• I-RESCUE BUS lending program.
• I-RESCUE lending program.
• Innovation and technology lending program.

Landbank power, water or utility business loans

Under this program, there are two other programs:

• Go Green, inclusive financing program. Landbank's Green, inclusive financing program for SMEs and LGUs reduces your electricity costs while promoting environmental protection. The loanable amount is up to 90% of the project cost.
• BRIGHTNESS program. Landbank seeks to deliver inclusive growth to every family through national electrification support services. It is intended to offer loan support to increase the capacity of the rural power industry. The loan term can be up to 15 years.

OFW reintegration program

Business prospects are made available to overseas Filipino workers (OFWs) thanks to this program partnership between Landbank and the Overseas Workers Welfare Administration (OWWA). With the bank’s credit support, you can start and run your own business in place of your abroad employment.

Business loans for farmers

Whether you need additional finance, more production, or operational expansion for your agribusiness, Landbank can help you. Under this business loan, they have:

• Sulong saka.
• Agricultural credit support project.
• Agricultural and fishers financing program.
• DA sikat saka program.
• ARISE-ARBs program.
• Agricultural competitiveness enhancement fund (ACEF).
• SWINE lending program.
• PALAY ng lalawigan.
• Enhanced partnership against hunger and poverty (EPAHP).
• Young entrepreneurs from school to agriculture program (YESAP).

Business loans for fishers

This business loan is strictly for fishers. Under this, they have:

• Agricultural credit support project.
• Agricultural and fishers financing program.
• Pagsasakang pantubig.
• Financing program for commercial fishing vessels.

How to apply a business loans?

To apply for a loan, visit the Landbank website and download the application form specifically for the type of loan you want, fill it out, and take it to the nearest branch to complete your loan application.

Landbank business loan requirements

The requirements vary depending on the type of business loan you are applying for, but the general conditions are:

• Application form for a business loan from Landbank.
• Biographical information with a passport-size photo.
• Copy of the registration certificate from the department of trade and industry.
• Mayor's permission.
• Internal tax revenue copy and audited form (BIR-received).
• A three-year financial statement.
• Most recent interim financial report.
• Fundamental assumptions, projected income statement, balance sheet, and cash flow statement.
• A concise history of the company.

You can visit the Landbank website to check the entire requirement depending on the type of business loan you want to apply for.

Pros and cons

Here are some pros and cons of Landbank business loans.

Pros

• It provides a boost for cash flow.
• With the loan, you would still maintain the business ownership.
• There are a lot of business loans to choose from.

Cons

• A very long list of requirements.
• Loan applications can be very stressful.

How to repay?

Only in-person repayment of Landbank business loans at the branch where you submitted your application and executed the contract is permitted, or repayment via an automatic debit arrangement (ADA).