LandBank approves P250M loan for schools' 'study now, pay later' program

State-run lender Land Bank of the Philippines has already approved some P250 million in loans under its P3-billion credit support for private academic institutions to provide a "study now, pay later" scheme to students hit by the coronavirus.

According to LandBank president and chief executive officer Cecilia Borromeo, the approved loan was for at least one school under the ACcess to Academic Development to Empower the Masses towards Endless Opportunities (ACADEME) program.

"Meron na hong mga paaralan na lumapit sa LandBank, katunayan meron na kaming in-approve na P250 million sa isang malaking school," she said during the Laging Handa public briefing on Wednesday.

Under the ACADEME program, LandBank provides credit funds to private and non-DepEd high schools, private technical-vocational and education training (TVET) institutions, and private higher education institutions (HEIs).

The program allows qualified borrowers to loan as much as 70% of the total worth of promissory notes issued by parents or benefactors of the students on a per-semester basis. The loans have a 3% interest rate per annum, with a three-year term.

"Ibibigay ho namin itong pangutang na ito sa mga schools para makapag-offer sila ng 'study now, pay later' sa kanilang mga estudyante. Ang magiging borrower o manghiram mula sa LandBank ay ang mga pribadong paaralan or educational institutions," said Borromeo.

"Ang mga magulang at guardian ng ating mga estudyante o mag-aaral ay maaring manghiram sa mga private schools na ito para 'yung mga schools naman na 'yan ay pupunta sa LandBank at ipa-rediscount nila 'yung mga promisory notes ng kanilang mag-aaral," she added. --KBK, GMA News