Landbank lending program helps schools with "study now, pay later" schemes

The Landbank of the Philippines has launched a lending program to help educational institutions implement “study now, pay later” programs while the country still faces the COVID-19 pandemic.

 

Landbank President and Chief Executive Officer Cecilia Borromeo said the Landbank ACADEME (ACcess to Academic Development to Empower the Masses towards Endless Opportunities) program can also help educational institutions recover from their losses during the pandemic.

 

Borromeo said the bank allotted P3 billion for the program. The loan can be repaid up to three years with a fixed annual interest rate of 3%.

 

“Ang mga magulang ay maaaring mang hiram sa schools na ‘to para ang mga schools naman ang pupunta sa Landbank with the rediscount promissory note ng mga mag-aaral (Parents can borrow from schools while the schools can go to Landbank with the rediscount promissory note of the students),” Borromeo said. 

 

She said Landbank can lend schools up to 70% of the sub-promissory notes of their students on a per semester basis. This is also further subject to a maximum amount based on the school’s net borrowing capacity. 

 

The schools will implement zero percent interest on loans to parents, depending on the tenure of their students. 

 

Borromeo said the bank has already approved a P250 million loan to a big school in Metro Manila.