How Students Can Apply Loan in LandBank?

LandBank understands the challenges posed by the adverse effect of the pandemic to jobs and businesses.

They are offering this financial assistance to help parents, guardians or benefactors send students to school.

Students can now loan up to Php150,000 but not more than Php300,000.

Here are the details on how to apply for student's loan in LandBank:

OBJECTIVES

The program aims to:

1. Provide financial assistance that would enable the parents/benefactors to send their students to school but are having difficulty owed to adverse effect of the pandemic in their jobs/businesses;
2. Assist private schools, and downstream industries to sustain their operations and continue as a going concern; and
3. Heed the call of the government for LANDBANK to support the students in these times of economic crisis.

ELIGIBLE BORROWERS

• Parents, guardians/benefactors

ELIGIBILITY CRITERIA

1. Parents, guardians/benefactors:

• Filipino Citizen of legal age and with established repayment capacity;
• A co-borrower shall be required if the principal borrower is more than 60 years old and/or with no established repayment capacity;
• Must have established credit history and good credit standing. The Lending Units (LUs) shall check the borrower's historical two (2) months of card payments/billings, utility billings if updated prior to COVID-19;
• Must be a permanent resident/has resided with minimum two (2) years in area of residence; and
• Must have a combined monthly net take home pay (after loan amortization) of P20,000, per enrolled student.

2. Co-borrower:

• Not be more than 60 years old and Filipino Citizen;
• With good credit standing and must have established repayment capacity, as evidenced by Certificate of Employment Employment Contract (if employed), Business Permit (if Self-employed), among others; and
• Must be a permanent resident/has resided with minimum two (2) years in area of residence.

3. Students:

• must be Filipino Citizen;
• Not over 30 years old at the time of application;

Note: Per the “Youth in Nation-Building Act" under RA 8044 enacted in 1995, Filipino youth is defined as those with ages 15-30;

c. Incoming student who are qualified under the admission and retention requirements of school or technical vocational institutions recognized/accredited by CHED/TESDA/DepEd;

d. Not a current beneficiary of the Universal Access for Quality Tertiary Education Act of 2017 (R.A. 10931) or any scholarship program or of any privilege having free tuition fees as honor student; and

e. Of good moral character as certified by school.

ELIGIBLE LOAN PURPOSE

• Finance tuition/enrollment-related fees

CREDIT FACILITY

• Short-Term Loan for pre-school, primary, secondary
• Term Loan for tertiary

LOANABLE AMOUNT

• Maximum loan amount shall be the equivalent of 1 school year or 2 semesters, or Php150,000 per student but not more than Php300,000 per borrower and which shall be based on the submitted school-issued Enrolment Assessment Form/Registration Form with Schedule of Assessed Enrolment Fees.

LOAN TENOR

• Short-term loan - payable within 1 year via 360 day promissory note (PN)
• Term Loan - payable up to maximum of 3 years inclusive of 1 year grace period on the principal

MODE OF RELEASE

• Short Term Loan - lumpsum and to be credited directly to the account of the school
• Term Loan - lumpsum per semester and to be credited directly to the account of the school

INTEREST RATE

• 5% per annum fixed for the entire term of the loan

PENALTY FOR LOAN DEFAULT

• 24% per annum

OTHER FEES

• Loan Processing Fee
• Documentary Stamp Tax

COLLATERAL

• Clean (No collateral)

CREDIT ENHANCER

Any of the following

• Issuance of PDCs for the scheduled loan repayments
• Credit Life Insurance up to the extent of the loan obligation

REPAYMENT TERMS

For the Short Term Loan:

• Principal and interest shall be payable on maturity date of the PN

For the Term Loan:

• Interest shall be payable quarterly during the grace period
• Equal monthly amortization (principal plus interest) after the 1 year grace period

DOCUMENTARY REQUIREMENTS

Pre-processing Requirements:

A. Parents, guardians or benefactors or co-borrower:

• Duly accomplished loan application Form
• For salaried individuals:
  • Certificate of Employment or Contract of Employment
  • Copy of 3 months latest pay slip
  • Latest BIR-filed Income Tax return
• Valid Government-issued ID
• Proof of billing address and payment record from at least 2 utility/service companies

B. Students

• Admission slip or Enrollment Form with Student ID issued by an educational institution or technical vocational institution (for incoming student) or proof of enrolment (present or latest enrolment or registration form for continuing student)
• Form 138 or Certified True Copy of Grades during previous semester attended
• Certificate of Good Moral Character from the dean or guidance counselor or any authorized personnel from the school
• Schedule of payment of school fees and other enrollment-related expenses for the subject school semester or school year, as the case maybe, duly certified by the registrar or authorized personnel of the educational institution

Note: Some documents need not be submitted if the same shall already be provided by the school.

Pre-release Requirements:

• The borrower should open a LandBank deposit account where repayment of the loan shall be debited
• Certificate of completion of academic requirements duly certified by the registrar or equivalent from previous school year or previous semester
• Schedule of payment of school fees and other enrollment-related fees for the current term duly certified by the registrar or authorized personnel of the institution.
• Duly received by the school, the Authority for LANDBANK to receive copies of documents from school related to the student's records
• The borrower shall give consent to disclose credit information to other banks, financial institutions, the Banker's Association of the Philippines Credit Bureau (BAP-CB) and other credit bureaus or institutions

Post-Release Requirements

No more than 5 calendar days after completing the enrollment:

• Photocopy of validated Enrollment Assessment Form or Registration Form and teller-validated accomplished copy of the Bills Payment slip
• Valid student ID issued by the institution immediately within 5 days from ate of issuance (for the student)
• Official Receipt/s as proof of payment of tuition fee, other enrollment-related school fees
• Authority to Debit account

Within two weeks from end of the term or as soon as available

• Certificate of completion from educational institutions or equivalent document form technical-vocational institution duly certified by the registrar or equivalent

After having completed the enrollment assessment made by the schools, student loan applicants may submit their applications together with the complete pre-loan processing documents to the nearest LANDBANK Lending Center.

IMPLEMENTING ARRANGEMENT

The school by which the student would like to enroll should have a Memorandum of Agreement with Landbank. - https://www.affordablecebu.com/