The Land Bank of the Philippines (LANDBANK) has introduced an enhanced support program for Credit Surety Fund (CSF) Cooperatives as part of its continuing efforts to strengthen access to financing for micro, small, and medium enterprises (MSMEs) and cooperative members nationwide.
Under the updated program, LANDBANK outlined several key features designed to make CSF-backed loans more accessible and affordable.
One of the major highlights is the removal of collateral requirements for CSF-backed loans. Instead of demanding traditional security such as real estate or chattel mortgage, LANDBANK will rely primarily on the surety agreement issued by CSF Cooperatives.
The bank also announced an interest rate reduction for CSF-guaranteed loans. Borrowers may benefit from a lowered interest spread of up to 1% per annum, subject to a floor rate. Fixed interest rates and applicable floor rates under special lending programs will continue to apply.
Furthermore, LANDBANK reaffirmed its active involvement in CSF operations. In compliance with the implementing rules and regulations of the CSF Act, the Lending Unit or Lending Center Head, or their designated Senior Account Officer, shall attend regular and special General Assembly meetings of CSF Cooperatives. The presence of LANDBANK representatives aims to provide technical guidance and support on loan-related matters.
In addition, LANDBANK announced a policy shift regarding its contributions to CSF Cooperatives. Amounts previously classified as investments will now be treated as grants, prompting CSF Cooperatives to update their respective books of accounts accordingly.
The latest initiative reflects LANDBANK’s ongoing commitment to enhancing the financial resilience of CSF Cooperatives and supporting the growth of MSMEs and cooperatives across the country.
