Landbank extends P1-B loan to small farmers, fisherfolk

MANILA, Philippines - State-owned Land Bank of the Philippines is extending P1 billion in loans to farmers, fisherfolk and small enterprises as it pushes for improved financial inclusion.

Landbank announced a new loan facility called Empowering Barangays in Remote Areas through Credit and Enterprise that will address financing needs of around 1.2 million farmers, fishers, micro and small enterprises in unserved areas nationwide.

According to the state-run bank, the program has more relaxed features and requirements and lower interest rates for farmers to engage in eligible projects like agricultural crop, livestock, fishery production, agri-enterprise and other livelihood activities.

Landbank officer-in-charge Cecilia Borromeo said the lending program would support the government’s effort to bring marginalized sectors under the umbrella of financial inclusivity.

“This facility will complement our lending programs for small farmers and fishers through conduits as well as existing programs in partnership with the Department of Agriculture and Department of Agrarian Reform,” Borromeo said.

Under the program, priority will be given to farmers who are owner-cultivators, tenants, leaseholders, who

are tilling not more than five hectares of agricultural land.

Meanwhile, eligible fisherfolks include coastal fishermen who own or operate not more than three gross tons of fishing boat paraphernalia and conduct fishing activities within 15 kilometer radius from the shoreline.

Fishpond owners or operators of not more than five hectares including those under fishpond lease agreement or fish cages less than 400 square meters are also qualified for the loan.

Individuals engaged in gathering seashells, catching aquatic resources, small scale fish, seaweed and aquamarine production, and aquaculture are also eligible for financing.

The program also covers micro-enterprises with assets of not more than P3 million and small enterprises with P3 million to P15 million in assets.

Interested borrowers can go to any Landbank Lending Center or branch across the country.

Landbank is the biggest credit provider to small farmers and fishers and local government units and the biggest lender to micro-enterprises and SMEs among government financial institutions.