Experience Effortless Banking

INTEREST RATE
5% per annum fixed for three (3) years and subject to annual repricing thereafter based on one (1) year BVAL reference rate plus a spread based on credit rating

PASS-ON RATE
• For small farmers and fishers (SFFs)
    - Maximum of 12% per annum, inclusive of other charges
• Other than SFFs but for agricultural purpose
    - Maximum of 12% per annum
• For non-agricultural purpose
    - 15% per annum

PENALTY FOR LOAN DEFAULT
• 24% per annum
• For Cooperatives - 3% per annum to be charged on the 31st day (to consider the 30-day curing period) up to the date of loan settlement

OTHER FEES
Standard fees and charges shall follow existing Bank policy

COLLATERAL
Any or a combination of the following:
• Real Estate Mortgage (REM)
• Chattel Mortgage (CM)
• Hold out on Deposits
• Other collaterals acceptable to Bank

CREDIT ENHANCER
Any or a combination of the following:
• Assignment of Contract/Receivables or Promissory Note of sub-borrowers, plus underlying collateral
• Post-Dated Checks (PDCs) to cover maturing principal and interest amortizations for medium enterprises
• Credit Life Insurance
• Assignment of claims on insurance/guarantee
• Joint and Several Signatures (JSS) of owners/major stockholders

REPAYMENT TERM
• Short Term Loan Line shall be on Promissory Note maturity date
• Term Loan – up to 10 years (inclusive of 1 year grace period on the principal) payable monthly, quarterly, semi-annually or annually; for permanent working capital, up to five (5) years, payable monthly, quarterly, semi-annual, or annual amortization based on cash flow

Loan under Rediscounting/On-Lending:
• For Short Term Loan Line:
  1. Principal may be payable in lump sum upon Promissory Note’s maturity date or consistent with batching by maturity date of sub-Promissory Notes as per revised CPI on Rediscounting Facility for PFIs
  2. Interest may be payable in monthly, quarterly, semi-annually in arrears or upon maturity of
Promissory Note
• For Term Loan:
  Principal and interest are payable in monthly, quarterly, semi-annually or annually in arrears depending on repayment mode of sub-borrower’s PN

DOCUMENTARY REQUIREMENTS
General Loan Processing Requirements
• Accomplished Loan Application Form (with pictures, if applicable)
• SEC/CDA/DTI-certified true copy of Certificate of Registration, Articles of Incorporation/Cooperation and By-Laws
• Corporate Secretary-certified true copy of duly notarized Certificate confirming the Resolution of the Board of Directors and/or committees or bodies authorizing the application for LANDBANK loans specifying the amount, loan purpose and the entity’s authorized signatories
• Valid certificates/permits/licenses/clearances from concerned government agencies
• Audited Financial Statements (FS) with Notes for the past three (3) years and the current year interim FS
• List of Key Officers of the Firm, incumbent members of the Board of Directors and the firm’s existing principal shareholders and their stockholdings
• Client Information and Signature Specimen Card and at least one (1) valid/government ID such as but not limited to unexpired passport, Social Security System, Government Service Insurance System or Driver’s License
• Tax Identification Number/Copy of updated Income Tax Return (ITR)

(Applicable only if the above-listed documents are not on-file yet)
• Additional Project Type-Specific Pre-Processing Requirements
  1. For Construction/Repairs and Renovation: Cost Estimates Building Plan and Specification/Bill of Materials and Work Program/Building Permit
  2. For start-ups, viable business model/plan or feasibility study plus training certificates for relevant trainings attended by the members of the management team

Pre-Loan Release Requirements for Rediscounting/On Lending
• Letter-request to avail from the Term Loan from the firm signed by its authorized signatories, indicating among others the following:
  1. Amount of loan to be availed
  2. Number of sub-borrowers/prospective sub-borrowers
  3. Name of commodity/projects to be financed
      Note: This is for the purpose of determining more or less the amount of loan to be released
• Master list of sub-borrowers/sub-PNs to be assigned, if available
• PDCs, if the master list of sub-borrowers is not yet available
• The borrowing firm shall maintain custody of all sub-borrower’s PN including underlying collateral. The firm shall submit a notarized undertaking to keep custody of the sub-borrower’s PN and its provided underlying collaterals in favor of LANDBANK and that the same are open for inspection and audit of LANDBANK representative, anytime at the Bank’s discretion.
• Disclosure Statements duly signed by the authorized signatory/ies of the entity
• Duly notarized and signed Promissory Notes with Assignment of Assets/Inventories/Receivables
• Schedule of Notes Offered for Assignment indicating therein the face value and current outstanding balance of the sub-PNs and underlying collaterals (i.e. real estate/chattel mortgages, pledges, guarantees, suretyships, assignments, hold-outs, quedan/trust receipts, etc.) and supporting documents thereof
• Duly Notarized Certification that the assigned promissory notes with the underlying collaterals: i) are current; ii) are in the custody of the entity and available for inspection and physical transfer anytime at the option of LANDBANK through its authorized representative; and iii) have not been assigned to any other financial institution, including
the BSP

Post-Loan Release Requirements
• Schedule of loans disbursed under the Emerging FILIPINA Lending Program, not later than sixty (60) days after the loan has been released
• The entity shall return to LANDBANK the amount of the undisbursed amounts including interest incurred computed up to the date of return/payment not later than the 91st calendar day from the date of loan release, if any
• No subsequent releases shall be made until the entity has submitted the complete schedule of loan receivables and has returned/paid to LANDBANK the undisbursed amount including interest incurred
• Validation of sub-PNs rediscounted shall be covered by the provisions of CPI 2020-006 (Revised Implementing Guidelines on Rediscounting Facility for PFIs), as may be amended