Landbank clears P531 million loans for ‘study now, pay later’ program

MANILA, Philippines — Government-owned Land Bank of the Philippines has approved P531.3 million in loans to 16 private schools that offer ‘study now, pay later’ schemes for their students.

These were made through its P3-billion Academe Lending Program launched at the height of the strict lockdown in May last year to extend credit to private high schools, technical-vocational education training institutions, colleges and universities with the goal of encouraging students to enroll as their parents issue promissory notes for the tuition fees.

These notes will then be refinanced or rediscounted under the lending program.

Schools obtaining credit will be allowed to borrow as much as 70 percent of the sub-promissory notes per semester and subject.

However, schools can only borrow up to a certain maximum amount based on their net borrowing capacity as determined by Landbank.

This program offers a so-called ‘3-3-3’ feature: a P3-billion program fund in credit support, a low fixed interest rate of three percent per annum and a repayment period not exceeding three years.

The lending program will be available until June 30.

The Academe program complements the bank’s I-Study direct lending program that provides financial assistance to parents, guardians or benefactors to enable them to send their students to schools.

I-Study has recently been expanded to cover the purchase of gadgets needed for online learning.

Under its enhanced I-Study Lending Program, the bank is now offering a loan of up to P50,000 per student to finance the purchase of equipment such as laptop, desktop or tablet computers that can be included in the maximum loanable amount of P150,000 per student or P300,000 per parent-borrower to cover payment for tuition or enrollment-related fees.

Students of legal age are also now eligible to apply for the Landbank I-STUDY Program if they meet eligibility requirements.

When the loan program was initially launched last year, only parents and guardians or benefactors of students could apply for the financial assistance.