Loan Facilities

One of the two primary functions of banks is advancing loans. The Land Bank of the Philippines
have the following loan programs:

1. SME Credit Facility;

2. Development Lending Programs;
3. Agrarian;
4. Loans for Farmers and Fishers;
5. Housing and Mortgage Programs;
6. Business Loan;
7. Equity Investment Loan;
8. Personal Loan; and
9. SME and Microfinance.1

This paper will focus on loan programs unique to the Land Bank of the Philippines and some that are
also available in other banking institutions, more specifically the following;.

1. Loans for Farmers and Fishers

a. Da Sikat Saka Program
b. Agricultural Credit Support Project
c. Agricultural and Fisheries Financing Program
2. Personal Loans
a. Housing Opportunities Made Ease (HOME) Program
b. Mortgage Loan
3. Commercial Loans
a. OFW EDLP (OFW Enterprise Development Loan Program)
b. BUILDERS PROGRAM (Bringing Urbanization and Innovations through Landbank’s Diverse
Engineering Resource Support)
c. RENEWABLE ENERGY LENDING
d. HEALTH-PLUS (Health – Progressive Lending for Upgraded Services)
e. CACAO 100 (Credit Assistance for Cacao Agribusiness entities and other Organizations –
100)
f. MILK (Masustansyang Inumin sa Likas na Kalusugan Program)
g. ISDA (Integrated Support for the Development of Aquaculture)
h. KAWAYAN (Kalikasang Kabuhayan para sa Wastong Pamayanan)
i. SPEED Jeepneys Program (Special Program for Environment-friendly and Efficiently-
Driven Jeepney).2

LOANS FOR FARMERS AND FISHERS

DA SIKAT SAKA PROGRAM3

This offers a direct credit window from LANDBANK and integrated support from the Department
of Agriculture to small palay palay farmers to improve their creditworthiness and the viability of crop
production. This program covers forty five (45) major rice producing provinces, nationwide.
Small palay farmers in irrigated lands for palay production are eligible to avail of this program.

Eligible Criteria

 For Service Conduits

o Irrigators Association
 Must be in good standing as certified by NIA or Municipal Agriculturist if the IA is
supervised by the LGU
o Small Water Impounding Stem Associations (SWISA)

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https://www.landbank.com/loans
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3
https://www.landbank.com/sikat-saka
  Must be in good standing as certified by the Bureau of Soil and Water Management
(BSWM)
 For Small Palay Farmers
o Owns or tills at least ½ hectare of irrigated land but not to exceed 5 hectares
o A member in good standing of an Irrigators Association (IA) or Small Water Impounding
System Association (SWISA)
o Has no outstanding loan for palay production purposes with LANDBANK and other
financing institutions at the time of loan application
o Attended a seminar on financial education or any similar training to be conducted by ATI4

Loanable Amount

The amount of loans shall be based on the credit needs of the farmer per farm plan and budget but not to
exceed the following prescribed loan ceiling for palay production:

o P41,000 per hectare for Inbred variety

o P50,000 per hectare for Hybrid variety

AGRICULTURAL CREDIT SUPPORT PROJECT5

Partnering with the Department of Agriculture, Department of Agrarian Reform, and Department
of Environment and Natural Resources, the Land Bank of the Philippines offers loan funds toward
increasing investments, creating new job opportunities, and improving agricultural productivity in the
rural areas and provides credit support to agriculture and agri-related projects within a value chain.
Program Partners and their Basic Roles

 Department of Agriculture – Provides funds, technical and marketing support

 Department of Agrarian Reform (DAR) – Provides farm facilities and other support services
 Department of Environment and Natural Resources – Provides other support services
 Land Bank of the Philippines – Provides credit, manages fund and administers loans

Eligible Borrowers

 Agrarian Reform Beneficiaries Organizations (ARBOs)

 Farmers Organizations (FOs) other than ARBOs
 Peoples Organizations (POs)
 Other Conduits such as Co-ops, Rural Banks and NGOs

Eligible Sub-Borrowers

 ARBs or their household members who are actual cultivators of the land and have no outstanding loan
with any financing institutions for the same project/loan being applied for

Eligible Criteria

A. For ARBOs, FOs other than ARBOs and POs only

 With legal personality (duly registered with SEC and CDA)

 With ARB members
 With core management team (i.e. manager, cashier, bookkeeper)
 Must be operational for the past six months
 With systems and procedures in place (particularly in lending)

B. For other conduits

 Regular lending criteria of LANDBANK

Eligible Projects

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5
https://www.landbank.com/ACSP
 Crop production (short and long gestating crops)
 Agri-enterprise
 Livelihood projects (agri-related)

AGRICULTURAL AND FISHERIES FINANCING PROGRAM6

This provides small farmers with fishers access to formal credit to finance their economic
activities. This program is being implemented in partnership with the Department of Agriculture (DA) and
the Agricultural and Credit Policy Council.

This program was implemented pursuant to the 2013 General Appropriations Act, P1.0 billion
shall be used to implement a flexible credit facility for small farmers and fisherfolk who are registered in
the Registry System for Basic Sectors in Agriculture (RSBSA), which is intended to serve as an alternative
to the rigid and stringent credit facilities usually provided by banks. The funds will be channeled through
Government Financial Institutions (GFIs) and cooperative banks. Of the P1.0 billion, P 550 million shall be
administered by LANDBANK.

This program covers Six (6) provinces namely: Abra, Apayao, Ifugao, Kalinga, Masbate, Romblon
and other provinces which may be agreed upon with PCFC.

The following are the objectives of the program:

1. Help increase the productive capacity of small farming and fishing households in the priority
provinces, raise their income, and contribute to the attainment of food self-sufficiency.
2. To increase access of small farming and fishing households in the priority provinces to
sustainable credit.
3. To broaden agricultural credit delivery system in the countryside particularly in geographic
areas underserved by formal financing institutions.

PERSONAL LOANS

HOUSING OPPORTUNITIES MADE EASE (HOME) PROGRAM

This caters to both homebuyers and home developers. It offers the following facilities:

1. Easy Home Loan;7

• Loan Purpose

• For the purchase of:

a) Townhouse
b) Condominium unit
c) Lot, House and lot
d) Other residential unit
e) Construction of a residential building on a lot owned by the
borrower
f) Refinancing of existing housing loan with other banks or
financing firms or developers' in-house financing-provided
account is in "current status"

2. End-Buyers Tie-Up; 8

• For the purchase of:

a) Townhouse
b) Condominium unit
c) Lot, House and lot

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https://www.landbank.com/affp-financing-programs
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https://www.landbank.com/Easy-Home-Loan
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https://www.landbank.com/end-buyers
 d) Other residential unit
e) Construction of a residential building on a lot owned by the borrower
f) Refinancing of existing housing loan with other banks or financing
firms or developers' in-house financing-provided account is in
"current status"

3. Bahay para sa Bagong Bayani9

• Eligible Loan Purpose

a) Residential Lot
b) House and Lot
c) Residential Units/Condominium/Townhouse
d) Construction/improvement or renovation of existing residential unit
owned by OFW
e) Refinancing of an existing housing loan of the OFW on "CURRENT"
status
f) Assumption by an OFW an existing housing loan by another borrower
either with LANDBANK or another creditor

MORTGAGE LOAN

Purpose is to provide a credit facility to be made available for eligible clients to make use of their
real estate property as loan security to a multi-purpose loan from the Bank.

Commercial Loans

OFW EDLP (OFW Enterprise Development Loan Program)10

This is an enterprise development interventions and loan facility of the Overseas Workers Welfare
Administration (OWWA) in partnership with the Land Bank of the Philippines (LBP) and the Development
Bank of the Philippines (DBP). It is a a package of enterprise development interventions and loan facility
that aims to help OFWs and their families in the establishment of viable business enterprises that will
provide them with steady income stream and create employment opportunities in their community.11

BUILDERS PROGRAM (Bringing Urbanization and Innovations through Landbank’s Diverse Engineering
Resource Support)

The Bringing Urbanization and Innovations thru LANDBANK’s Diverse Engineering Resource
Support or BUILDERS program provides business loans to SMEs in the local construction market. It forms
part of the Bank’s contribution to the Public-Private Partnership projects of the national government by
extending credit support to private and public sector players in the industry.12 The program is used to fund
construction projects of licensed contractors.

The following are projects eligible under the program:13

 TERM LOAN:
o Contractors’ business expansion projects
 Construction of own office building
 Renovation of business premises
 Purchase of construction equipment/machineries
o Fulfilment of obligations in awarded multi-year projects (i.e. BOT)
 SHORT TERM FACILITIES:
o Contractor’s funding requirements in fulfilling obligations in awarded contract/s, which may
cover the following:

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https://www.landbank.com/bagong-bayani
10
http://www.owwa.gov.ph/sites/default/files/files/The%20OFW-EDLP%20Presentation.pdf
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12
https://www.landbank.com/LBPs-BUILDERS-Best-SME-Product
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https://www.landbank.com/builders-program
a) Housing/Education/Real Estate Development:

 Any system of housing that contains multiple separate domiciles within a certain area.
o Apartments
o Tenements
o Subdivision Development
o Mass Housing
o Condominiums
o Commercial Buildings
o School Buildings

b) Mass Housing Projects in connection to rehabilitation undertakings for calamity stricken regions
c) Transport infrastructure

 Road and highway networks, including structures:

o Bridges
o Tunnels
o Fly-overs
o Retaining walls
o Edge treatments
 Curbs
 Sidewalks
 Landscaping
 And other facilities i.e. road works/maintenance
 Mass transit systems networks/structures
o Commuter rail ways systems for
 Trains / tramways
 Bus terminals
o Terminals
o Rail yards
o Railway stations
o Level crossings
o Railroads
o And other construction projects pertaining to railways
o Terminals
o Tarmac
o And other airport facilities
o Over-pass
o Waiting Sheds
o Underpasses
o Walkways
o Specialized structures for cyclists and physically challenged
o And other projects pertaining to commuters
 Railways structures & facilities including:
 Airports
 Commuter/Pedestrian Facilities

d) Water management infrastructure

 Facilities for drinking water supply

o Including the system of pipes
o Storage reservoirs
o Pumps, valves, filtration and treatment equipment and meters
o Buildings and structures to house the equipment, used for the collection, treatment and
distribution of drinking water
 Sewage collection and disposal of waste water
 Sewage/Septage treatment plants
 Drainage systems
o Storm
o Sewers
o Ditches, etc.
 Major irrigation systems
o Reservoirs
o Irrigation pipes/structures
o Dams/impounding structure
o Canals, etc.
 o Dams
o Dikes
o Levees
o Pumps & major pumping stations
o Floodgates
 Major flood control systems
 Coastal management, including structures like seawalls, breakwaters
o Treatment Facilities
o Impounding structures
o Levees, tubes, ducts and channels
o Construction of communal faucets
o Construction of facilities for district metering zones
o Construction of leak detection & control system facilities
o Rehabilitation of pipes & fittings
o Expansion/rehabilitation of distribution lines and source development
 Facilities/Plants for Water Sanitation
 Waste Water Management Projects which include:
 Potable Water Projects and Facilities

e) Communications infrastructure

 Postal Buildings/facilities
 Telephone networks buildings/facilities
 Television, cable, radio and communications satellites transmission stations

f) Solid waste management infrastructure

 Municipal garbage and recyclables collection station

 Solid waste landfills
 Solid waste incinerators, biomass gasification system and other facilities of the like
 Materials recovery facilities
 Hazardous waste disposal facilities

g) Power/Energy/Renewable Energy Supply & Management Projects

 Bio-Mass Facilities
 Hydroelectric Facilities
 Geothermal Plants / Research & Testing Facilities
 Solar Power Plants / Facilities
 Wind Power Plants
 Coal Energy Plants / Facilities
 Diesel & Fuel Plants & Facilities
 Natural Gas Plants / Facilities

RENEWABLE ENERGY LENDING14

LANDBANK's Renewable Energy Lending Program provides financing to renewable energy/

energy-efficient projects and supports the national government's thrust of promoting RE development,
utilization and commercialization, and accelerating investments in the energy sector.
ELIGIBLE PROJECTS15

• Renewable Energy Projects as defined under RA 9513 or the Renewable

• Energy Act of 2008
• Biomass
• Geothermal
• Solar Power
• Hydro Power
• Ocean-generated energy
• Wind-generated energy
• Biofuel

14
http://climate.gov.ph/images/documents/FA-RE-Lending---LSD---12092015.pdf
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 • Other Renewable Energy Projectssuch as but not limited to the following:
• Hybrid Systems
• Fabrication/Manufacturing of RE Technologies, equipment,
• and Components
• Energy Efficiency Projects

ELIGIBLE LOAN PURPOSES16

• Working Capital
• Permanent Working Capital
• Project Preparation
• CapitaL Expenditures

Credit Assistance for Cacao Agri-Business and Other Organizations (CACAO 100) Program17

The reason for the CACAO 100 program is to increase agricultural productivity through
intercropping of cacao in coconut areas or planting in idle lands, provide credit assistance to Small Farmers,
SMEs, LAEs amounting to at least P500 Million, for production, in the next 3 years, and contribute with the
overall efforts of the government in generating employment and pursuing the attainment of inclusive growth
in the countryside.18

The eligible borrowers are individual Borrowers*/SMEs, Cooperatives/Associations/Farmers

organizations, and Large Agri-Business Entities/Corporations.

MILK (Masustansyang Inumin sa Likas na Kalusugan Program) 19

According to the Land Bank website the MILK program is aimed at further improving the local milk
production, save precious dollars from imported milk and nourish the well-being of every Filipino.

Its coverage is nationwide and the eligible borrowers are Cooperatives/Associations, Federations,
Countryside Financial Institution, Small and Medium Enterprises, and Agri-Business Entities.20

ISDA (Integrated Support for the Development of Aquaculture) 21

ISDA is a growership program for fisheries anchored on institutional buyers or processors linked
with small fisherfolk and SMEs as growers”22 The program is used to fund fish production, processing and
marketing.

KAWAYAN (Kalikasang Kabuhayan para sa Wastong Pamayanan) 23

According to the Land Bank website KAWAYAN is a program that will promote as source of
livelihood or business to cooperatives, farmer associations, SMEs, NGOs, Agri-business Entities and Local
Government Unit. Likewise, position LANDBANK as a topnotch Green Bank championing a more
sustainable environment protection thru financial intervention. 24 It is used to fund bamboo production and
bamboo-based products.

SPEED Jeepneys Program (Special Program for Environment-friendly and Efficiently-Driven

Jeepneys)

This program is in relation to the Public Transport Modernization Program, a program of the Duterte
administration. The Land Bank of the Philippines is putting up a P1-billion credit facility for a program that
will help driver-operators replace 15 years old and above public utility jeepneys (PUJs) with modern public
transport.

Its purpose is to help fund the replacement of 650 PUJs for the Public Transport Modernization
Program.

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17
https://www.landbank.com/cacao-100-programs
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https://www.landbank.com/milk-programs
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21
https://www.landbank.com/isda-program
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23
https://www.landbank.com/kawayan-program
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