As part of the priority thrusts of Landbank of the Philippines new services will be offered by the institution to small and medium enterprises (SMEs).
Guesting during Wednesday’s Habi at Kape media forum at Abreeza Ayala Mall, Davao City, LBP vice president and lending center head Charlotte I. Conde disclosed that LBP will be offering loan to young entrepreneurs and franchising loan for SMEs.
She explained the first product will be open to new graduates who are interested to venture into business.
“Provided that they have the feasibility study,” said Conde.
Conde added, the franchising loan for SMEs will prioritize small farmers and fishers industry clusters.
“We have identified around several priority products and these are cacao, cassava, coconut, coffee, livestock and anything related to fisheries,” said Conde.
These services will be rolled out within the year as soon as implementing rules will be placed, according to Conde.
Conde stressed SMEs are considerd by LBP as priority customers especially those who engage into agri-related projects.
“These can be short-term, meaning additional working capital requirement for existing business operations. If they would like to expand their business through position and fixed assets, if they want to put up their plant, processing plant or construct buildings, we can also fund,” she said.
In 2016, out of the PhP12 billion loan portfolio, LBP has a PhP300 million outstanding exposure to SMEs which they want to double or hit at least 50% increment rate for this year.
Last week, the bank approved a P26 million loan that a company that is venturing in processing stones into construction materials.
The company, PTO Ventures and Management Co., is using the fund to buy equipment and set up its processing plants in the city
Land Bank of the Philippines is a universal bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen. While it provides the services of a universal bank, it is officially classified as a “specialized government bank” with a universal banking license.
LBP Davao lending office covers the entire Region XI. Next year, the lending center will expand office to Tagum.