Land Bank of the Philippines (LandBank) has set aside P2 billion for a new credit facility specifically for fishermen who want to purchase commercial fishing boats.
Called LandBank Commercial Fishing Vessel Financing Program, the loan facility allows eligible borrowers willing to borrow up to 80 percent of the acquisition cost to purchase a brand-new, second-hand or refurbished commercial fishing boat and related equipment for their business.
Eligible Program borrowers include commercial fishing operators from small and medium enterprises, cooperatives, and large enterprises.
LandBank will likewise provide readily available and affordable credit at an interest rate of 5 percent per annum for three years, subject to re-pricing thereafter, payable up to 10 years.
Commercial fishing vessels refer to fishing boats, ships or watercrafts with gross tonnage (GT) of 3.1 and up. Object of financing must be in accordance with Maritime Industry Authority (MARINA) standards as supported by a MARINA Certificate of Ship Registry.
In addition, the boat to be financed should be in seaworthy condition, properly equipped with life-saving, communication, safety and other equipment, and operated and maintained in accordance with the standards set by MARINA.
“LandBank remains steadfast in supporting the fisheries sector. We are looking to cover the requirements for fishing vessels to assist more fishers in boosting their production and profit, and contribute to ensuring food security in the country,” LandBank President and CEO Cecilia C. Borromeo said.
In 2020, LandBank’s agricultural loans grew from P236.31 billion in 2019 to P237.62 billion, more than half of which were given to small, medium, and large agribusinesses.
Of the P237.62 billion total outstanding loans, small, medium, and large agribusiness enterprises were granted P142.75 billion, while P50.89 billion was channeled to support agri-aqua related projects of local government units (LGUs) and government-owned and controlled corporations (GOCCs).
The remaining P43.98 billion went to small farmers and fishers, cooperatives and farmers’ associations, rural financial institutions, and other conduits.