LAND BANK of the Philippines (LANDBANK) has launched a lending program for micro, small, and medium enterprises (MSMEs) to help them grow their businesses through both financing and capacity-building support.
Funds borrowed through the LIFTING MSMEs program — or LANDBANK’s Innovative Financing Thrust Towards Inclusive National Growth thru Micro, Small, and Medium Enterprises — can be used for working capital, business expansion, equipment purchase or upgrade, renovation, digitalization, franchising, export and trade finance, and green or sustainable projects.
“MSMEs are the backbone of the Philippine economy, making up 99.6% of total business establishments and employing 65% of the total workforce. Every loan extended to an MSME creates a ripple effect — sustaining jobs, uplifting families, and strengthening communities. Through the LIFTING MSMEs Lending Program, LANDBANK is fueling this multiplier effect to accelerate inclusive and sustainable growth across the nation,” LANDBANK President and Chief Executive Officer Lynette V. Ortiz said.
There are three loan packages under the program. First, the Start-up Loan lets small businesses that have been operating for less than a year borrow amounts from P100,000 to P500,000.
It includes free financial literacy training, minimal collateral requirements, and offers low interest rates, LANDBANK said.
Meanwhile, the Step-Up Loan allows micro and small enterprises with at least one year of operation to borrow amounts between P500,000 and P5 million. It includes free training, interest rate reductions, provision of point of sale terminal, and eligibility to transition to higher financing.
Lastly, the Level-Up Loan offers small and medium enterprises that have been operating for more than three years access to financing of up to P50 million to scale their business. The package offers lower interest rates and access to a LANDBANK corporate credit card.
LANDBANK is also extending a rediscounting line under the program to credit cooperatives, rural banks, and microfinance institutions that provide loan services, covering up to 85% of outstanding receivables.
The program can be availed through the state-run bank’s Business Loan Application portal.
LANDBANK booked a net income of P25.23 billion in the first semester, rising from P20.7 billion in the same period last year. — A.M.C. Sy