Landbank releases P3 billion loans to farmers

MANILA, Philippines — Government-owned Land Bank of the Philippines has released P3.02 billion in loans to farmers as part of efforts to help boost productivity of the local farm sector.

Land Bank said the loans have been released under the Department of Agriculture’s programs aimed at providing affordable financial assistance to farmers and fishers to help increase their productivity and profitability.

Under the Agricultural Competitiveness Enhancement Fund (ACEF), Landbank released a total of P2.5 billion in loans to 19,367 eligible borrowers as of the end of June.

Of the total borrowers, 19,189 are small farmers and fisherfolk, 119 are micro and small enterprises, and 59 are farmers and fisherfolk cooperatives and associations.

Direct lending under the ACEF has been made available to eligible borrowers at an interest rate of two percent per annum.

Individual farmers and fisherfolk may use the loan for the purchase of farm inputs and equipment or for farm improvement. For MSEs, cooperatives and associations, the loan may be used for the acquisition of machinery, equipment and facilities for agri-based production and post-production, as well as processing.

Another P527.3 million was released to 3,115 rice farmers and 22 cooperatives under the Expanded Rice Credit Assistance of the Rice Competitiveness Enhancement Fund following the Rice Tariffication Law.

Landbank is one of the implementing agencies for the P1-billion RCEF allocation for credit.  It is mandated to make available P500 million in loans annually to rice farmers in 59 out of 80 rice-producing provinces.

Direct lending is available to eligible borrowers at an interest rate of two percent per annum. For on-lending, interest rate is at zero percent with prescribed pass-on rate to end-borrowers of up to six percent per annum.