MANILA – The Land Bank of the Philippines (Landbank) has approved a PHP250-million loan for an educational institution under its Access to Academic Development to Empower the Masses towards Endless Opportunities (ACADEME) lending program.
During the Laging Handa public briefing aired over state-owned television station PTV-4 on Wednesday, Landbank president and chief executive officer Cecilia Borromeo declined to name the school but said proceeds of the loan will be used for the school’s “study-now, pay later” program.
She said students will be given a zero-percent interest loan although the loan term will depend on the agreement between the school and the student or their parents.
Landbank’s PHP3-billion ACADEME lending program is open for schools offering junior and senior high school program that have permit to operate from the Department of Education (DepEd), technical and vocational education training (TVET) schools regulated by the Technical Education and Skills Development Authority (TESDA), and colleges and universities with undergraduate programs authorized by the Commission on Higher Education (CHED).
Borromeo said they have adopted a 3-3-3 feature for this program that pertains to PHP3-billion credit support, 3-percent fixed interest rate per annum, and three-year maximum maturity for sub-promissory notes that the schools will submit to Landbank.
She said Landbank will offer refinancing or rediscounting of as much as 70 percent of the amount of promissory notes issued by the student’s parents or guardians to the school on a per semester basis and subject to the school’s net borrowing capacity.
“We launched this program in the first week of May because we know that there will be people who will have difficulty financing their kids’ education,” she said referring to the impact of the coronavirus disease 2019 (Covid-19) pandemic.