Landbank Boosts Farm Sector with P11.47 Billion Loan Program: Lower Rates, Easier Access

The Land Bank of the Philippines (Landbank) is sowing the seeds of agricultural prosperity with its newly launched Agrisenso Plus Program. This P11.47-billion initiative aims to empower Filipino farmers by providing easier access to affordable loans.

“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,” Landbank president and CEO Lynette Ortiz said in a statement over the weekend.

The penalties paid by other banks for noncompliance with The Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022 generated P1.47 billion of the P11.47 billion allotted for this loan program.

According to Landbank, 10,000 small farmers, fishermen, and agrarian reform beneficiaries (ARBs) are the target audience for Agrisenso Plus.

Small fishermen, micro, small, and medium-sized businesses engaged in the agricultural value chain, and agriculture graduates from government-sponsored or endorsed programs within three years of graduation were among the several recipients that the loan program's scope was extended to include.

For small farmers, fishermen, and ARBs, the program offers a fixed interest rate of 4 percent annually; for other borrowers, the interest rate ranges from 6.5 to 7.5 percent.

Additionally, ARBs and agricultural reform beneficiary organizations, as well as big businesses and anchor firms lending to their partner small farmers and fishermen and their cooperatives and associations, may be eligible for a concessional interest rate with a 0.5% discount.

Purchase orders and irrigators' organization endorsements are no longer necessary according to Agrisenso Plus, which has streamlined farmers' documentation requirements. Additionally, DAR or NIRDA can endorse rice growers. Free credit and life insurance are provided by the scheme.