November 25, 2024 | 12:00am
MANILA, Philippines — State-run Land Bank of the Philippines, together with its partners, has launched a lending program to strengthen support for the agriculture sector,
Developed in collaboration with the Department of Agriculture, Department of Agrarian Reform, other government and private partners, the AGRISENSO Plus lending program was launched on Nov. 22 in Candaba, Pampanga.
The program is designed to provide support such as expanded eligibility, lower interest rates and a simplified loan process for small farmers, fishers, agribusinesses as well as other players in the agriculture value chain.
Agriculture graduates will also be eligible to access the program within three years after graduation. This is part of the bank’s efforts to nurture the next generation of agri-entrepreneurs.
With the AGRISENSO Plus program, Landbank is targeting 10,000 small farmers, fishers and agrarian reform beneficiaries (ARBs) to benefit from accessible credit assistance.
“AGRISENSO Plus reflects Landbank’s commitment to providing holistic and meaningful support to the entire agriculture sector,” Landbank president and CEO Lynette Ortiz said in a statement.
“Through strategic collaborations with public and private partners, we are complementing accessible credit with insurance benefits, capacity- building and other interventions to boost productivity, enhance income, drive sustainable growth, and contribute to national food security,” she added.
The AGRISENSO Plus offers a fixed affordable interest rate of four percent per annum for small farmers, fishers and ARBs, while other borrowers benefit from a competitive rate of 6.5 to 7.5 percent per annum.
Beyond financing, AGRISENSO Plus provides eligible borrowers with free life insurance and credit life insurance. Program borrowers are also qualified for training and capacity-building programs to improve agricultural practices and business management skills.
Large enterprises and anchor firms who are lending to their partner in the agriculture value chain also gain a concessional interest rate with a 0.5 percent discount.
According to Landbank, the program has a total P11.47 billion fund allocation, of which P1.47 billion is sourced from the penalties due from banks under Republic Act 11901 or The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022 Law.
Existing AGRISENSO borrowers with approved credit lines will automatically transition to AGRISENSO Plus upon their next loan availment, allowing them to benefit from the program’s enhanced features.
“Through the AGRISENSO Plus Lending Program, Landbank remains a steadfast partner in agricultural and rural development, helping to drive economic growth and food security for the nation,” the bank added.
As of September, Landbank has extended P731.76 billion in loans to agriculture, fisheries and rural development, making it the biggest lender to the agricultural sector.
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