Landbank launches enhanced lending program for farmers, fishers

State-run Land Bank of the Philippines (LBP) has launched an enhanced lending program aimed at making financing more accessible to farmers, fisherfolk, and agribusinesses.

In a statement on Saturday, Landbank said it launched AGRISENSO Plus Lending Program on Nov. 22, 2024 at the Candaba Action Center in Pampanga.

The AGRISENSO Plus Lending Program was developed in collaboration with the Department of Agriculture (DA), Department of Agrarian Reform (DAR), and other government and private partners.

The state-run lender said the AGRISENSO Plus Program, an enhanced version of its existing initiative, is designed to deliver a full suite of support—featuring expanded eligibility, lower interest rates, and simplified loan process to provide broader access to credit and other support interventions for small farmers, fishers, and agribusinesses, and other players in the agriculture value chain.

Landbank said the AGRISENSO Plus targets 10,000 small farmers, fishers, and agrarian reform beneficiaries (ARBs) to benefit from accessible credit assistance and capacity-building support to help improve productivity, enhance income, and advance sustainable growth.

"AGRISENSO Plus reflects LANDBANK's commitment to providing holistic and meaningful support to the entire agriculture sector. Through strategic collaborations with public and private partners, we are complementing accessible credit with insurance benefits, capacity-building and other interventions to boost productivity, enhance income, drive sustainable growth, and contribute to national food security," said Landbank president and CEO Lynette Ortiz.

Landbank said the enhanced AGRISENSO Plus widens its scope to cover a broader range of beneficiaries, including small fishers, and micro, small, and medium enterprises (MSMEs) involved in the agricultural value chain.

Eligible borrowers also include agriculture graduates, who will now be eligible to access the Program within three years after graduation, nurturing the next generation of agri-entrepreneurs.

Aside from financing, AGRISENSO Plus also provides small farmers and fishers and ARB borrowers with free life insurance and credit life insurance.

Program borrowers are also qualified for training and capacity-building programs to enhance agricultural practices and business management skills, supporting more sustainable and resilient agribusinesses.

Landbank said it has simplified the AGRISENSO Plus application process by reducing documentary requirements. Purchase orders are no longer required for individual farmers, and endorsements from irrigators' associations are no longer needed for farmers in irrigated areas.

Meanwhile, ARBs who are also rice farmers now have the option to use endorsements from either the DAR or the NIA.

The AGRISENSO Plus offers a fixed interest rate of 4.0% per annum for small farmers, fishers, and ARBs, while other borrowers may avail of a rate of 6.5%-7.5% per annum.

Large enterprises and anchor firms lending to their partner small farmers and fishers and their cooperatives and associations, and ARBs and Agrarian Reform Beneficiary Organizations (ARBOs), also gain a concessional interest rate with a 0.5% discount, fostering collaborative growth across the agriculture value chain, Landbank said.

Existing AGRISENSO borrowers with approved credit lines will automatically transition to AGRISENSO Plus upon their next loan availment, allowing them to benefit from the program's enhanced features, the lender said. — VDV, GMA Integrated News