Manila: State-run Land Bank of the Philippines (LandBank) has rolled out a new lending program to empower micro, small, and medium enterprises (MSMEs) and their partner financial institutions with accessible financing and capacity-building support.
According to Philippines News Agency, the initiative, named the LIFTING MSMEs Lending Program, is designed to provide eligible borrowers with loan proceeds that can be used for various purposes including working capital, business expansion, equipment purchase or upgrade, renovation, digitalization, franchising, export and trade finance, and green or sustainable projects.
The program features three distinct loan packages tailored to different stages of business development. The start-up loan, offering between PHP100,000 to PHP500,000, targets start-ups and microenterprises with less than one year of operation. This package includes free financial literacy training, minimal collateral requirements, and low introductory interest rates.
For micro and small enterprises operating for at least a year, the step-up loan provides financing from PHP500,000 to PHP5 million. This package offers additional benefits such as free training, reduced interest rates, provision of a Point-of-Sale (POS) terminal, and the opportunity to transition to higher financing levels.
The level-up loan, which is targeted at small and medium enterprises with more than three years of operations, offers up to PHP50 million. It aims to provide strategic funding to scale businesses, featuring lower interest rates and access to a LandBank corporate credit card.
Additionally, LandBank supports credit cooperatives, rural banks, and microfinance institutions (MFIs) by offering a rediscounting line. This line enhances their lending capacity by covering up to 85 percent of outstanding receivables, thereby facilitating increased loan services to MSMEs.
"MSMEs are the backbone of the Philippine economy, making up 99.6 percent 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," said LandBank President and CEO Lynette Ortiz.
Interested parties can apply for the LIFTING MSMEs Lending Program through LandBank's Business Loan Application portal. This online platform allows applicants to submit their applications directly, complete application forms, upload required documents, and track the status of their application 24/7 via the LandBank website at.
