Landbank okays ₧250-M loan for private school

Land Bank of the Philippines (Landbank) said it has approved an education loan support worth P250 million under its “study now, pay later” program.

During a Laging Handa briefing on Wednesday, Landbank President and CEO Cecilia C. Borromeo said the loan program could help the financially distressed students to continue their schooling amid the Covid-19 pandemic.

“Meron na kaming in-approve na P250 million sa isang malaking school para makapagpautang sila... sa kanilang mga estudyante at zero percent interest. [We approved P250 million to a big school so it can offer loan support to students with no interest],” she said.

The tenor of the loan payment is up to the discussion of the particular school with its students, Borromeo said. Landbank, however, did not identify the school.

The approved amount is part of the P3-billion credit support to private academic institutions the staterun bank launched in early May.

The lending facility can be availed by private high schools, private technical and vocational education training institutions, as well as higher education institutions, such as colleges and universities.

The loan has a fixed interest rate of 3 percent per annum and is payable based on the maturity of the sub-promissory notes within three years.

The lending program allows refinancing or rediscounting of promissory notes issued by the parents or benefactors of students for school loans.

The loan will be released via lump sum or staggered basis per semester. It will be directly credited to the deposit account maintained by the school with the bank.

The borrowing support is available until June 30 next year.

“Alam naming may kababayan tayo na mahihirapan para tustusan ang tuition fee ng kanilang mga anak. So, ang ginawa po ng Landbank, nakipag-ugnayan kami sa mga private schools. [We know that many of our countrymen are struggling to finance the education of their children. So, what the Landbank did was to coordinate with private schools],” she said.