A Landbank loan is not something new, and with the many agriculture projects happening in the country, this bank’s products are more in demand than ever.
The blog would take you through the different aspects of the bank’s financial support packages, why you should get one, how to apply, and more!
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Information About The Landbank Of The Philippines
The Landbank is a financial institution in the Philippines, which the government owns. It was established in 1963 to provide credit facilities for agriculture, trade, and industry. The institution operates as a government-owned bank and does not seek profit.
Landbank financial institution
It is the resort bank for agriculture and rural development projects. The institution provides financial assistance for constructing, improving, and expanding farm-to-market roads, farm mechanization, and post-harvest facilities.
It is mainly engaged in land-based financial activities, including loan operations and agro-industrial financing. The Landbank also provides agricultural financing, real property financing, trade financing, automobile financing, and other loans.
Why Should You Choose A Landbank Loan?
Variety of product
There is no surprise that Landbank is one of the banks that provides the most financial support packages for customers, with dozens of different programs. Here are the following three main groups of objects and purposes:
Objects ought to choose Landbank loan
- For farmers and fishers: its main role is helping individuals businesses with loans involving rural land and farming-related needs. In addition, they provide financing for agricultural machinery, livestock feed supplies, money for farmers and fishers.
- For housing purposes: it aims to ease the process of buying or constructing a home. It’s meant for those who want to fulfill their dreams of owning a house.
- For business: these programs help entrepreneurs start, sustain and expand their businesses. They provide financial assistance to entrepreneurs who wish to grow their businesses but lack the funds.
Attractive interest rate
For farmers and fishers: the Land Bank of the Philippines has introduced more affordable programs for their clients. In line with their efforts to intensify support for their clients’ groups, their lending programs have been made 5% interest per annum for most farmers and fishers – which is a much lower level of interest.
In addition, there are some retail lending programs at a fixed interest of 2% p.a, providing maximum support for the residents.
For businesses: the institution is ready to assist in rehabilitating local enterprises cooperatives affected by this year’s COVID-19.
Any enterprises or cooperative interested may take out loans at a competitive interest rate of 5% p.a. The lending term can be up to 5 years, making it easier for business owners.
Higher loan amount
Loan levels will vary based on each support package. However, the bank always meets most of the needs of its clients with attractive amounts:
For business, the institution has introduced many programs that allow clients an alternative way to get the startup capital they need.
Qualified borrowers can obtain at least 100,000 pesos or any amount up to 85% of their working capital (not exceeding 300,000 pesos). You don’t need to present hard collateral to qualify for this program!
For housing purposes, the institution supports loans as low as 500,000 pesos with repayment terms up to 20 years. The maximum amount you can get depends on the verified monthly income of you and your spouse.
What do you lend for?
For farmers and fishers, the amount of money will depend on the needs and purposes of each individual, ranging from about 20,000 to 300,000 pesos (or more).
See also – UnionBank Quick Loan Information & Guideline
How To Apply For A Landbank Loan?
There are two ways for you to apply for a mortgage here. The surest way is to go directly to the bank branch to get the staff’s help. Nevertheless, with the development of technology, the bank also supports borrowers registering at home via their online platform or mobile application.
To register online, you might need to follow these steps:
- Visit their website and go to the application page.
- Fill out all the required data in the form.
- Upload some documents, usually your ID, proof of income, household registration, etc.
- Wait for a confirming call.
- Go to the office for the final steps.
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What are the requirements for a Landbank loan?
To qualify for loans, you need to review the requirements that the bank makes carefully. Specifically, because of the diversity in products provided, Landbank’s packages will have different requirements, but here are the standard documents you need to prepare:
- Application form
- Identity documents
- Income statement
- Employment certificate
- Registration certificate
The bank may require you to pass a separate assessment test to determine your eligibility for that package on some product packages.
For the most detailed information, please visit their official website -> go to the “Loan” section ->, select the appropriate product package -> check the bank’s detailed requirements.
What other product does Landbank provide?
Besides basic lending packages for farmers and fishers, businesses, and home loans, the institution has recently launched a package of electronic lending products.
Electronic Salary Loan is a new product that provides convenient underwriting and disbursement of salary loans for bankers, civil servants, school teachers, or any eligible employees. Anyone who qualifies can get your money in minutes!
The platform allows its clients to apply for salary loans, check their account balances, view previous transactions, and be notified through SMS or email when it’s time for repayment.
How long is the processing of a Lankbank loan?
Typically, it takes fifteen days for the bank to process the application form from the borrowers. However, in some cases, it lasts longer than the standard time since there are some lacking documents or things that need reviewing.
Therefore, to be disbursed on time, please make sure that you provide accurate documents requested from the institution.
In addition to helping you through your financial difficulties, a Landbank loan can also help you expand your business’s capabilities.
We hope this information helps you make a more informed decision about which financial support package is right for you. If you have any other questions, don’t hesitate to get in touch with us anytime!
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