Land Bank of the Philippines (LandBank) is stepping up its drive to expand its physical presence in an effort to better serve the banking needs of its customers in unbanked and underserved areas in the country.
The move forms part of the bank’s thrust of responding to the developing needs of the agriculture sector or what it termed as its “rural revitalization” strategy under the new normal.
In a press release, the state-owned lender announced that it plans to inaugurate this year its 11th agricultural hub in Bongabong, Oriental Mindoro to provide farmers and fisherfolks in the area easier access to financial assistance.
“We hope to be able to generate more economic opportunities and activities in the municipality and in the nearby areas,” said Cecilia C. Borromeo, President and CEO of LandBank, in the press release.
The construction of the agri-hub is set to commence this month and is expected to be inaugurated in late December 2022.
The soon-to-be-launched agri-hub in Oriental Mindoro is projected to serve around 12,233 farmers and fishers in the municipality. It would also deliver banking services to public and private clients of the bank, which includes the 5,360 beneficiaries of the national government’s conditional and unconditional cash transfer programs.
The facility will also be equipped with various digital banking platforms, including the Digital Onboarding System (DOBS), which simplifies the account opening process for new clients to only 10 to 15 minutes.
According to LandBank’s website, it currently has 10 existing agri-hubs nationwide.
These agri-hubs are currently situated in Calabanga, Camarines Sur; Barotac Viejo, Iloilo; Sual, Pangasinan; Echague, Isabela; Sta. Maria, Ilocos Sur; Bago City, Negros Occidental; Ubay, Bohol; Candaba, Pampanga; Baggao, Cagayan; and Rizal, Nueva Ecija.
Serving the needs of farmers and fisherfolks nationwide
In a separate press release, LandBank announced that as of August 31 this year, it has already released a total of P8.1 billion in loans to over 35,500 borrowers under its Agricultural Competitiveness Enhancement Fund (ACEF) Lending Program.
The ACEF program provides necessary credit for increased productivity through the purchase of farm inputs and equipment, as well as agri-based production and post-production processing machinery and facilities.
Under the ACEF, the state-run bank will provide credit assistance for farm inputs and the acquisition of agricultural fixed assets. The loanable amount for individual farmers and fisher folks is up to P1 million. MSMEs, cooperatives, associations, and similar other organizations may borrow up to P5 million.
The bank is also implementing the Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund, which aims to help increase the productivity, efficiency, and profitability of rice farmers and their cooperatives. Eligible program borrowers can avail of up to 90% of their total project cost.
“LandBank remains one with the Department of Agriculture (DA) and other government partners in serving the requirements of farmers and fisherfolks nationwide to increase their productivity and income. We are committed to delivering accessible and responsive financial services toward revitalizing our local economy and ensuring food security,” Ms. Borromeo said in an earlier statement.