LANDBANK Business Loan Interest Rate

LANDBANK Business Loans Overview

The Land Bank of the Philippines (LANDBANK) is a government-owned bank with a universal banking license that has 607 branches nationwide, with 71 branch lite units, 2,810 ATMs, and 58 lending centers. This means that when it comes to the convenience and accessibility of their loan products, many individuals and entrepreneurs will not have any trouble finding them. 

The business loan products they offer are the following: OFW Reintegration Program, Innovation & Technology (I-TECH) Lending Program, SPEED PUV Lending Program, PFI-Accord, and Lending Program for Former Rebels (FR). Learn more about these products including the key benefits in the next section. 

Business Loans Offered by LANDBANK

OFW Reintegration Program

This loan product is a tie-up between LANDBANK and the Overseas Workers Welfare Administration (OWWA) to help OFWs, whether they are still abroad or returning to set up their own businesses to provide an income stream for their families back home, so they no longer have to work overseas.

Interest Rate: 7.5% per annum

Loan Amount: 

• ₱2 million for Sole Proprietorship
• ₱5 million for Partnerships, Corporations, or Cooperatives

Innovation & Technology (I-TECH) Lending Program

This loan is offered to finance patented Filipino inventions and use the funds for asset acquisition, materials production, capital expenditure, or working capital. 

Interest Rate: 

• LANDBANK Internal Fund: 5% per annum (subject to annual review) 
• Technology Application and Promotion Institute (TAPI) IGF: 0%

Loan Amount: up to 85% of the financing requirement, not to exceed ₱12.5 million or the repayment capacity of the borrower (whichever is lower)

SPEED PUV Lending Program

This loan program’s main objective is to provide a loan to address the needs of the public transportation sector to harmonize the modernization efforts of both public land and marine transportation. Those covered under this loan program are the transport cooperatives or corporations falling under the Land Transportation Franchising Regulatory Board (LTFRB) Omnibus Franchising Guidelines. 

Interest Rate: 6% per annum

Loan Amount: Whichever is higher between the repayment capacity of the borrower or 95% of the acquisition cost of the unit. 

Loan Tenure: Based on cash flow but not exceeding seven years

PFI-ACCORD

The PFI-ACCORD is a loan program that incentivizes long-standing partnerships that PFIs (Partner Financial Institutions) have with LANDBANK. Eligible PFIs include those who have maintained a satisfactory credit rating and creditworthiness. 

Interest Rate: 

• For Cooperatives, and RBs/CBs/TBs: Prevailing LANDBANK Interest Rate 
• For MFOs: same with the interest rate provided to Prime co-ops

Loan Amount: loan portfolio must be at least 75% for the past 3 years before the loan application

Lending Program for Former Rebels (FR)

In cooperation with Task Force Balik Loob (TFBL), former rebels such as those belonging to the Communist Party of the Philippines (CPP), New People’s Army (NPA), or the National Democratic Front (NDF) are given an opportunity to start life anew by providing them with the needed financing to start their own businesses. 

The eligible borrowers include individuals who were former rebels with a co-maker (preferably a spouse or partner, children, or siblings) and cooperatives or organizations that include former rebels. 

Interest Rate: 

• 6% per annum (Direct Lending)
• 6% per annum (Conduit Lending) with a maximum pass-on rate of 12% per annum 

Loan Amount: 

• Direct Lending: ₱25,000 to ₱100,000 per borrower
• Conduit Lending: up to 90% of the total project cost, if for relending, not to exceed ₱100,000 per borrower

Conclusion

Interest rates make or break loan decisions because of how it affects repayments in the long run. For many individuals or businesses, applying for a loan with a more competitive interest rate allows them to fully maximize the benefits of financing and reduce the repayment burdens in the future. After all, lower repayments mean more cash applied towards other revenue-generating activities for the business, and this is where LANDBANK is of great help.