Landbank extends P3.8 B loans to farmers, fisherfolks

MANILA, Philippines - State-owned Land Bank of the Philippines (Landbank) has extended P3.8 billion in loans to farmers and fishers under the government’s various program.

Landbank president and chief executive officer Gilda Pico said more farmers and fishers now have direct access to credit after the government-run bank stepped up efforts to reach out to those who are not members of accredited cooperatives and are unable to secure loans from lending institutions on their own.

“By providing individual borrowers with direct access to credit, we eliminate the deterrents that get in the way of small farmers and fishers in need of financing and help increase their productivity and income,” Pico said.

Landbank continues to strengthen lending programs with the Department of Agriculture (DA) and the Department of Agrarian Reform (DAR) as part of the government’s thrust toward financial inclusion and improved agricultural productivity.

The bank has released P2 billion in loans to 9,275 farmer-borrowers under Sikat Saka as of end-October. Sikat Saka provides direct access to credit for small palay farmers who are members of Irrigators Associations.

Most of the country’s palay farmers have no access to formal credit and thus depend on informal lenders that charge exorbitant interest rates.

The Sikat Saka program covering 45 major rice-producing provinces in the country also offers integrated support such as irrigation, training, market, extension and administrative services.

The government financial institution is also a partner of the DA, the Agricultural Credit Policy Council and the People’s Credit and Finance Corp. in implementing the Agriculture and Fisheries Financing Program (AFFP).