State-run Land Bank of the Philippines said over the weekend it approved loans totaling P20.07 billion as of April 30 to borrowers adversely affected by the COVID-19 pandemic.
The bank said in a statement the beneficiaries of the loans consisted mostly of micro-, small- and medium-enterprises and cooperatives.
It said through the I-RESCUE (Interim Rehabilitation Support to Cushion Unfavorably affected Enterprises by COVID-19) Lending Program, the bank provided support to 434 borrowers including 292 MSMEs, 81 cooperatives, 56 large corporations and five microfinance institutions.
LandBank said of the total P20.07 billion approved loans, P18.21 billion was already released.
The bank said that in April”•or exactly a year after the program was launched”•the program fund of the I-RESCUE Lending Program was doubled to P20 billion from P10 billion to accommodate the increasing number of loan applicants
The loan facility aims to provide credit and loan restructuring assistance to pandemic-hit businesses under more flexible terms and conditions and would be available until Dec. 31, 2022.
Under the I-RESCUE Lending Program, MSMEs, cooperatives, MFIs and large corporations may borrow up to 85 percent of their emergency or permanent working capital requirement.
Terms are set at an affordable interest rate of 5 percent per annum for three years, subject to annual re-pricing thereafter, and payable up to 10 years with a maximum of two-year grace period on the principal repayment.
The programs also offers a sub-credit facility for MSMEs, cooperatives and self-employed individuals duly registered with the Department of Trade and Industry and the Securities and Exchange Commission who were severely affected by the health crisis.
Qualified borrowers may borrow a minimum of P100,000 or up to 85 percent of the actual permanent working capital requirement but not exceeding P3 million, at a lower fixed interest rate of 3 percent per annum and payable for up to three years.
Existing LandBank clients may also avail of loan restructuring under the program via additional loan and extended repayment period to rehabilitate and restore their operational cash flow.