Land Bank of the Philippines

Company Information

In August 1963, the Land Bank of the Philippines (LBP) was established through the Republic Act No. 3844. It aims to finance the acquisition and distribution to small landholders of agricultural lands for division and reselling to landholders, including the agricultural lessee’s purchase and landholding. In 1977, LBP added three other significant sectors – Agrarian, Banking, and Operations.

One of the Land Bank’s guiding principles is to be completely self-reliant, even if it’s a 100% government-owned institution. It balances its social obligation of alleviating poverty by promoting countryside development while still financially viable.

Land Bank is a catalyst for countryside development. It’s also the official depository of government funds and provides financial help to fishermen and farmers. As the agency of the Comprehensive Agrarian Reform Program (CARP), it implements the evaluation of land, compensates private agricultural landowners, and collects amortizations from CARP-farmer beneficiaries.

As of February 2021, LBP has 411 branches nationwide, with 66 branch-lite units, 55 lending centers, and more than 2,300 ATMs and 168 Cash Deposit Machines (CDMs).

Land Bank is located at LANDBANK Plaza, 1598 M.H Del Pilar cor. Dr. J. Quintos Sts., 1004 Malate, Manila. For inquiries, you may contact (02) 8 522 0000 and 8 551 2200 or email [email protected]

Products and Services Offered

Loans to Farmers and Fishers

For Farmers

Sulong Saka

Land Bank extends financial assistance to farmers and other qualified stakeholders for high-value crops such as bananas, vegetables, oil palm, coffee, and cacao. The funds will support the production, processing, and marketing of these products and other agricultural projects. 

Borrowers can use the loan proceeds to acquire fixed assets, building construction, loan production, rediscounting of an existing loan, permanent working capital, or a commodity loan. 

Loan Amount

• Production: Cost-sharing of 80:20 (90:10 if the borrower is a small farmer)
• Fixed Assets: up to 80% of the acquisition or construction cost
• Commodity: not more than 85% of the market price at the time it was availed
• LGUs: based on Bureau of Local Government Finance (BLGF) certification, it must not exceed the net borrowing capacity 

Eligibility

You may check the list on the website or visit the nearest Land Bank branch for a complete list of eligible borrowers, projects, or criteria. 

Agricultural Credit Support Project

LBP has partnered with different government agencies to provide credit assistance to agricultural-related projects such as additional investments, improvement of a rural area’s productivity, and the creation of new job opportunities. 

• DA (Department of Agriculture)
• DAR (Department of Agrarian Reform)
• DENR (Department of Environment and Natural Resources)

Loan Amount:

Crop Production

• Not more than 80% of the total project cost

Agri-Enterprise and Livelihood Projects

• Up to 10% of the borrower’s loan portfolio for borrowers with an existing crop production loan
• Up to ₱1 million per borrower if he or she has an existing crop production loan under APCP 

Interest Rate

• Short-term Loan: 8.5% per year
• Term loan: 9.5% per year 

Both loans already include 2% rebates for prompt payments and pass-on rate adherence. 

Loan Term 

Short-term loan: not to exceed 1 year

Term loan: not to exceed seven years which includes the three-year grace period

Agricultural and Fishers Financing Program (AFFP)

The AFFP, an initiative of LBP in partnership with the DA (Department of Agriculture) and the Agricultural Credit and Policy Council, aims to provide farmers with access to fishers a formal credit to help them finance their activities. 

Loan Amount: ₱20,000 but not more than ₱300,000 per borrower (not to exceed 80% of the total project cost. 

Note: A borrower can apply for a loan for three projects simultaneously. 

Interest Rate: 15% per year

Loan Term: 

• Based on the cycle of the crop, operations, or project
• If the loan is for the acquisition of a fixed asset, the remaining useful life of the asset but not to exceed 5 years

Collateral

• Deed of Assignment of crop insurance proceeds or the proceeds of market contracts
• Unregistered chattel mortgage on the object of financing (if available)

Agricultural Competitiveness Enhancement Fund (ACEF)

The ACEF has two goals:

1. For farmers, fishermen and their cooperatives or associations, and small and micro enterprises to increase their productivity through financing. 
2. To increase competitiveness through agricultural lending programs to help small farmers and fisherfolks. 

Loan Amount: 

Borrowers are eligible to apply for up to 90% of the total project cost, provided that it will not exceed the following:

• Individual Borrower – ₱ 1 million
• Cooperative, Association, and MSE – ₱5 million per project loan

Interest Rate: 2% per year

ARISE-ARBs Program

This program supports Agrarian Reform Beneficiaries (ARBs)/SFH and their families to recover from disasters and restore their farming activities and livelihood. 

Loan Amount: 

• Up to ₱1 million per conduit for Livelihood and Agri-Enterprise Loans
• Not to exceed ₱10,000 per ARB/SFH and not more than ₱100,000 per conduit for Providential Loans

Interest Rate:

• 3% yearly for Livelihood and Agri-Enterprise Loans
• 0% for Providential Loans

DA Sikat Saka Program

The objective of this loan program is simple. It allows small palay and corn farmers to improve their creditworthiness and the viability of their crop production. Those working on irrigated lands are eligible to apply for this loan. 

PALAY ng Lalawigan

Provincial Local Government Units (LGUs) in palay-producing provinces are eligible to apply for the PALAY ng Lalawigan program. The eligible borrowers can apply for this loan and use the funds to procure palay, purchase farm machinery and equipment, and other rice-related activities.

Loan Amount: Based on the requirement of the LGU but not to exceed the Net Borrowing Capacity per Bureau of Local Government and Finance (BLGF) certification. 

Interest Rate: 

• 2% per year for STLL (Short-Term Loan Line) and PWC
• 4.5% per year, subject to repricing for TL

Loan Term:

• STLL: 90 to 180 days Promissory Notes (renewable)
• PWC: 3 years (monthly payable)
• TL: 10 years based on cash flow but not to exceed the useful life of the asset acquired
• Other rice-related activities

Enhanced Partnership Against Hunger and Poverty (EPAHP)

The EPAHP’s goal is to assist in terms of credit to Community-Based Organizations (CBOs) in helping the government address hunger, ensuring food and nutrition security, and reducing poverty in urban and rural communities, including the marginalized sectors. It also allows communities to participate in government contracts by providing credit services to qualified organizations. 

Short Term Loan Line Credit Facility Features

Loan Amount:

80% of the contract price awarded for goods based on the latest threshold in the Community Participation Procurement Manual (CPPM) for EPAHP. 

For Participating National Government Agencies

For Local Government Units (LGUs)

Interest Rate:  5% per annum

Loan Term: 1-year loan line not exceeding a 360-day Promissory Note (PN)

SWINE Lending Program

The Special Window and Interim Support to Nurture Hog Enterprises (SWINE) Lending Program aims to support those in the hog-raising industry to help them financially while also ensuring the pork supply of the country is running smoothly.

Types of Credit Facilities: Short-Term Loan Line (STLL) / Term Loan (TL)

Loan Amount: up to 80% of the total project cost

Interest Rate: 3% per annum (fixed), subject to repricing based on market rate but should not be lower than 3% p.a

Loan Term: 

• Short-Term Loan Line: 1-year line available through promissory notes
• Term Loan
  • Maximum of 5 years for working capital (permanent)
  • Acquisition and construction of fixed assets based on the cash flow or payment period but should not be more than the economic life of the asset

Young Entrepreneurs from School to Agriculture Program (YESAP)

Young Entrepreneurs from School to Agriculture Program or Yes! To Agriculture Program (YESAP) is geared toward empowering the youth to get into sustainable and viable projects in agribusiness by providing them with the capital and skills necessary to see the project through. 

Credit Facilities Available: 

• Short-Term Loan Line (STLL)
• Domestic Bills Purchase Line
• Term Loan

Loan Amount: 

A minimum amount of ₱50,000 but not to exceed the following:

• 90% of the Total Project Cost
• Land Acquisition – value of the land but not more than 20% of the total project cost

Interest Rate: based on the prevailing interest rate

Loan Term: 

• Up to 360 days Promissory Note (PN)
• For Term Loans – not more than ten years

RAPID Growth Credit Facility

The main goal of RAPID is to help small farmers, unemployed men, and women in rural communities increase their income. This program is available until July 8, 2024.

The coverage is available in the following regions:

• Region VIII (Leyte, Southern Leyte and Northern Samar) 
• Region IX (Zamboanga del Norte, Zamboanga del Sur and Zamboanga, Sibugay) 
• Region X (Bukidnon, Lanao del Norte and Misamis Oriental) 
• Region XI (Davao de Oro, Davao Oriental, Davao Occidental, Davao del Sur and Davao del Norte) 
• Region XII (North Cotabato, Sarangani, and Sultan Kudarat) Caraga (Agusan del Norte, Agusan del Sur and Surigao del Sur) 
• Bangsamoro Autonomous Region in Muslim Mindanao (Maguindanao)

Loan Amount: not to exceed 90% of the total project cost (grant amount, net)

Interest Rate: 

• 5% per annum (fixed), subject to repricing but shall not be lower than 5% of the market rate
• Re-lending – not to exceed 5% on market rate per client sector. Exclusive of fees, the pass-on rate shall not be more than 10%. 

Loan Term:

• Production: based on the cycle of gestation of the crop or based on the payback period of the project
• Fixed Asset Acquisition – based on the project’s cash flow but not more than the useful life of fixed assets acquired or the remaining useful life of used machines. 
• Permanent Working Capital – three years
• Working Capital – up to 360 days (via Promissory Notes)

For Fishers

Pagsasakang Pantubig

This loan product aims to strengthen aquaculture, fishery, mariculture, and its supporting industries. 

Loan Amount: not to exceed 80% of the total project cost

Interest Rate: based on the prevailing market rate per client sector

Financing Program for Commercial Fishing Vessel

Single Proprietorships, Partnerships, Corporations, and Cooperatives can apply for this loan program for purchasing a commercial vessel and its related equipment, either brand-new or used. 

Loan Amount: Up to 80% of the purchase price

Interest Rate: 5% per annum, fixed for three years. Repricing shall not be lower than 5% of the market rate

Loan Term: 10 years, not exceeding the useful life of the asset

Housing Loans

Easy Home Loan

Individuals and government employees can apply for a home loan for different purposes – purchase a lot, house and lot, condominium unit, or a townhouse, or refinance an existing housing loan with other banks. 

Loan Amount: minimum of ₱500,000

Loan Term: not to exceed 20 years, provided the age of the borrower plus the loan term shall not exceed 65 years

Eligibility

• The borrower must be a Filipino citizen.
• The borrower’s age should be at least 21 but not more than 65 when the loan matures.
• The borrower must have a valid source of income, either gainfully employed or have a profitable business.

Requirements

For Employed Borrowers

• Duly filled personal data information sheet
• Certificate of Employment (COE)
• Latest 1-month payslip
• Latest Billing Statement (Credit Card or Utilities)

For Self-Employed Borrowers

• Business License / Registration
• 3 years Income Tax Return and BIR-stamped Financial Statements 

Developer’s End-Buyers Financing Tie-up

Borrowers can buy or construct homes through accredited developers with this agreement. It also helps developers grow their business and increase their profits through the housing projects.

Loan Amount: up to 90% of the contract price that includes the titling, taxes, and any outstanding balances on top of the selling price

Loan Term: 20 years but 30 years for socialized housing

Bahay Para sa Bagong Bayani (3B)

The 3B program is specifically offered to Overseas Filipino Workers (OFWs) to help them construct or renovate their homes at a relaxed and flexible rate. 

Loan Amount: 

Lowest among the following:

• Loan paying capacity of the OFW
• 80% of the loan value of the collateral provided that the OFW’s name is on the collateral and the loan must be for the principal residence of the OFW.  

Loan Term:

• 15 years without a co-borrower
• 20 years with a co-borrower

Eligibility

• Must be a Filipino citizen
• Must be an OFW with an active employment contract from a reputable company
• At least 21 years old but not more than 65 years old upon loan maturity
• With a good credit standing

Requirements

• Duly filled loan application form with 1×1 ID picture
• Copy of the OFW’s employment contract
• TCT/CCT (photocopy)
• Tax Declaration (photocopy)
• Real Estate Tax Receipts (latest)
• Certification of a Geodetic Engineer
• Lot Plan
• Vicinity Map / Location Map

Business Loans

OFW Reintegration Program

This Landbank OFW business loan is in partnership with the Overseas Workers Welfare Administration (OWWA), which extends credit to assistance to OFWs. The loan proceeds can be used to set up their own business so they may no longer have to work overseas again. OFWs may use this loan for the following purposes: acquiring fixed assets or funding working capital. 

Loan Features

Loan Amount: ₱100,000 up to ₱2 million (Sole Proprietorships) or ₱5 million (Partnerships/Corporations/Cooperatives)

Interest Rate: 7.5% per annum

Loan Term: 

• Short-term – up to 1 year
• Long-term – not to exceed 7 years (based on cash flow inclusive of 2 years maximum grace period on the principal)

Project Cost Sharing: 

• Equity of Borrower: at least 20% of the Total Project Cost (TPC)
• Loan: up to 80% of the TPC

Eligibility Criteria

To avail of this loan, OFWs must meet the following:

• OFW must have attended the membership and capacity building program which should be certified by OWWA. 
• The Projects should either be of the following:
  • Must fall under franchising, construction, transportation, agri and non-agri production and marketing, trading, rental, and service industries. 
  • Tie up with the top 1,000 corporations in the country

Other business loans offered by LandBank include:

General / Small and Medium Enterprises

Power/Water/Utilities

Go Green Inclusive Financing Program

This loan program is offered to SMEs and LGUs to help save on electricity costs. The projects included are Solar Energy Systems and other environment-friendly systems such as heat insulation and high-efficiency and high-energy conversion equipment. 

Loan Amount: up to 90% of the total project cost

BRIGHTNESS Program

The BRinging Inclusive Growth in every Household Through National Electrification Support Services (BRIGHTNESS) Program is designed to help the rural power sectors build their electrification capacities through credit assistance. 

CFI-RESTORE Lending Program

LandBank launched this program to help businesses fast-track their rehabilitation brought about by the onslaught of typhoon Odette in December of 2021. In particular, the goal of this ₱10-B calamity loan is to address the working capital requirement and capital expenditures and the repair and maintenance of equipment, machine, or buildings destroyed by the typhoon. 

This loan program also supports CFIs, and they can use it to re-lend the funds to affected sub-borrowers. 

The CFI-RESTORE Lending Program is only available in the typhoon-affected regions that the national government previously declared to be under a state of calamity, including:

• MIMAROPA (Region IV-B)
• Western Visayas (Region VI)
• Central Visayas (Region VII)
• Eastern Visayas (Region VIII)
• Northern Mindanao (Region X)
• CARAGA (Region XIII)

Loan Features

Loanable Amount (based on the actual need for working capital & capital expenditure: 

• Rural, Thrift & Cooperative Banks – up to 85%
• CFIs’ Sub-borrowers’ Agricultural Loans – up to 90%
• Non-agricultural Loans – up to 85%

Interest Rate: 4% per annum (fixed for 3 years, and subject to repricing thereafter)

Loan Term:

• Working Capital – 3 years
• Captial Expenditure – 10 years
• Term Loan Rediscounting – 10 years 

Landbank Credit Card

Land Bank allows cardholders to make cashless purchases to any MasterCard-affiliated merchants conveniently. There are currently only two types of cards: Classic and Gold.

Eligibility

• The applicant must at least be 21 years old but should not be more than 65 years old. 
• Employed or Self-employed
• Minimum annual income of ₱150,000
• With a good credit standing

Requirements

• Completely fill credit card application
• Latest 1×1 ID picture
• Signed Data Privacy Consent Form

Why Choose LandBank

Financial Inclusion For Ordinary Farmers and Fishermen

Commercial banks rarely provide financial products to small farmers and fishermen. However, Land Bank is different. It gives these priority clients access to financing to sustain the business operations In addition, they have the capital to complete the crop cycle or purchase equipment or machinery. 

Convenient and Accessible Nationwide

Landbank has 607 branches nationwide, 71 branch-lite units, 58 lending centers, and more than 2,800 ATMs. Customers can access the services anytime, wherever is convenient.

Has the Mandate to Help Alleviate Poverty

Aside from being a depository of government funds, it’s also mandated to ignite the development of the economy through its loan programs in the countryside. As a result, Land Bank provides opportunities to its customers to grow money and help them out of poverty.

How to Sign Up

You may use the loan application online but must complete the succeeding steps via a branch visit.

Conclusion

Land Bank has been servicing Filipinos for almost six decades. It remains true to its vision of catering to the financial needs of the farmers and fishermen, which are generally not available in commercial banks.

The competitive rates and flexible payment terms entice individuals and corporations in need of financing. Truly, Land Bank is one of the few local banks that has been financially stable while spurring countryside development.