A Guide to Landbank Loans for SMEs

Business Growth
August 9, 2023

Small and medium enterprises (SMEs) play a crucial role in driving growth, creating jobs, and fostering innovation. However, access to affordable financing remains a significant challenge for many SMEs, especially for far-flung Philippine islands and regions that cannot be reached by commercial banks. In these areas, SMEs often rely on informal lenders, cooperatives, non-government organizations, or local government units to get any sort of financing. 

Land Bank of the Philippines, or Landbank, is a government-owned bank that promotes financial inclusion and countryside development for SMEs and microenterprises – particularly in the agriculture and agrarian sectors. Established in 1963, Landbank is one of the biggest state-owned banking institutions in the Philippines, with an extensive rural branch network in all 82 provinces. As of 2023, Landbank has 530 branches and 73 branch-lite units that offer loans, deposits, investments, remittances, and electronic banking facilities even in the most remote areas of the country.

In this article, we will explore Landbank business loans as a potential financing solution for Philippine SMEs, and other things you need to know before applying for a Landbank loan.

Which Landbank business loans are covered?

Landbank Business Loans

• Working Capital (WC)
• Permanent Working Capital (PWC)
• Fixed Asset Acquisition/Construction (FAA/C)

Landbank Credit Lines

• Short Term Loan Line (STLL)
• Import/Domestic Letter of Credit (LC)
• Domestic Standby LC Line
• Domestic Bills Purchase Line
• Export Packing Credit Line
• Export Bills Purchase Line

Landbank Special Financing Programs

• Sulong Saka
• SWINE Lending Program
• OFW-EDLP (OFW Loan Landbank)

Landbank loans for MSMEs are split into term loans, credit lines, and special financing programs.

What are the Landbank business loan requirements?

General Eligibility Requirements

• No adverse finding on the borrower/principals with well-defined source of repayment
• Profitable for the past three (3) years (except for start-up)
• Familiarity in the proposed project can be established (for start-up)
• At least 60% Filipino-owned, if partnership or corporation; and 100% Filipino-owned if sole proprietorship

Pre-Processing Requirements for Single Proprietorships

• LANDBANK Loan Application Form
• Bio-data of borrowers with passport-size ID picture
• Photocopy of Certificate of Registration with DTI
• Mayor's Permit
• Photocopy of Internal Tax Revenue and Audited Financial Statement for the last three years
• Latest interim Financial Statement
• Projected income statement, balance sheet and cash flow statement with basic assumptions
• Brief history of the Business

Additional Requirements for Partnerships and Corporations

• Photocopy of Certificate of Registration with SEC or BoI
• Certified True Copy of Articles of Incorporation/Partnership and by-laws
• Board Resolution authorizing the management to obtain loan from LANDBANK and designating the authorized signatories
• Notarized list of the following (certified by the Corporate Secretary for corporations): Officers, Partners (for Partnerships only), Board of Directors (for Corporations only), Principal stockholders & stockholdings (for Corporations only)
• Bio-data of borrowers or proprietors, partners, key officers, Board of Directors with passport-size ID pictures
• Sworn Statement of Assets and Liabilities of borrowers/proprietors, partners, key officers, and Board of Directors

Landbank business loans require the borrower's business to be profitable for the past 3 years.

What is the Landbank loan application process for SMEs?

SMEs can visit any Landbank lending center to apply for a Landbank business loan or credit line. Landbank online loan application is not available for SMEs at the moment. However, you may request more information from their customer hotline (+632) 405-7000, or email at customercare@mail.landbank.com.

For Landbank special financing programs addressing SMEs in the agriculture, swine, fishery and OFW industries, you may apply at:

Landbank Programs Management Department I
27th Floor, LANDBANK Plaza
1598 M.H. del Pilar cor. Dr. J. Quintos Sts., Malate, Manila
Tel. No. (+632) 8405-7450
Fax No. (+632) 8528-8542

How much can I get from Landbank business loans?

Most Landbank business loans can cover up to 80% of your project cost or financing requirement, while an OFW loan from Landbank) can provide up to ₱5 million.

What is the Landbank loan interest rate?

Most Landbank business loans follow the prevailing lending interest rate set by the Bangko Sentral ng Pilipinas at the time of availment or release. 

Landbank loan interest rates are lower for SMEs that qualify in special financing programs. For instance, the Landbank loan interest rate for the SWINE lending program is as low as 3% per annum; an OFW loan from Landbank is priced at 7.5% interest rate per annum.

What Landbank business loans are available as of writing?

Term Loans

Landbank loan type: Secured term loans
Eligible borrowers: Single proprietorships, partnerships, or corporations that are profitable for the past 3 years (except for start-ups)
Eligible projects: Agri-business, manufacturing, trading, services
Loan amount: Up to 80% of project cost or financing requirement
Basis of loan amount: Collateral; value of equipment or capital asset to be acquired; financial statements
Loan term: 1 year to 3 years
Interest rate: Prevailing lending rate at the time of availment/release

Landbank’s term loans provide qualified SMEs a lump sum to fund various capital expenditures. They are further classified into the following loans:

Working Capital and Permanent Working Capital (PWC)

These Landbank business loans can extend your business working capital to help you increase production, hire more labor, and jumpstart your business growth. Both loan types offer a maximum loan term of 3 years without grace period on principal and interest. For collateral, a chattel mortgage on machinery and equipment or a real estate mortgage on real properties and improvements is accepted.

Fixed Asset Acquisition/Construction (FAA/C) 

This Landbank business loan is specifically designed to fund the acquisition of business equipment, land, buildings, and other capital assets. It can also be used for the construction, expansion, and improvement of your business facilities.

For the acquisition of equipment and capital assets, the loan amount will be based on the value of the equipment or asset to be acquired. The loan term will be based on your business cash flow, but it should not exceed the economic useful life of the fixed asset. A grace period on principal of up to 2 years may be provided if your cash flow warrants it.

Landbank business loans can fund your working capital or acquisition of business equipment and capital assets.

Credit Lines

Landbank loan type: Secured and unsecured credit lines
Eligible borrowers: Single proprietorships, partnerships, or corporations that are profitable for the past 3 years (except for start-ups)
Eligible projects: Agri-business, manufacturing, trading, services
Loan amount: Up to 80% of project cost or financing requirement
Basis of loan amount: Collateral; value of contracts, job orders or receivables to be financed; financial statements
Credit line availability: Up to 1 year
Interest rate: Prevailing lending rate at the time of availment/release

Credit lines provide SMEs an ongoing access to a pool of funds that can be partially or fully withdrawn for various business needs. First Circle’s Revolving Credit Line is one such example: it provides up to ₱20 million in credit limit that our clients can use any time to extend their working capital.

Landbank’s working capital and liquidity support facilities are a mix of credit lines that work the same way. Instead of a lump sum from Landbank, the borrower will receive a credit limit that can be used to augment their working capital, liquify receivables, or finance new contracts. 

Landbank credit lines have a loan maturity of up to 360 days. This is the number of days that borrowers are expected to fully pay down the credit they used, including all interest and principal. 

Landbank credit lines are further categorized into:

Short Term Loan Line (STLL)

A credit line that can be used for general purposes, such as purchase of raw materials or finished goods and financing of accounts receivables, contracts, and purchase orders. This requires a chattel mortgage or real estate mortgage as collateral. For meritorious cases, Landbank also grants non-collateral lines of credit of up to ₱10 million.

Import/Domestic Letter of Credit (LC) / Trust Receipt (TR) Line

For payment of importation of goods from local or offshore suppliers.

Domestic Standby LC Line

For guaranteeing the borrower's performance of services or purchases from local suppliers.

Domestic Bills Purchase Line

For immediate liquidation of checks to deposit accounts without waiting for the check’s clearing period.

Export Packing Credit Line

Allows SMEs with export business operations to finance pre-shipment working capital requirements. It can also be used to pay for materials and labor needed to manufacture goods for export.

Export Bills Purchase Line

Allows SMEs with export business operations to finance post-shipment working capital requirements. It can also be used as liquidity support for exporters waiting for bank drafts, notes, or other export-related receivables to clear.

Landbank Special Financing Programs

As a government financial institution, Landbank adheres to a social mandate to develop the country’s financially-underserved industries and priority sectors. They fulfill this through various financing programs for farmers, fishermen, cooperatives, micro-entrepreneurs, students, overseas Filipino workers (OFWs) and more. These programs provide flexible terms and lower interest rates, ensuring that borrowers can achieve their business goals without undue financial burden. 

For the purposes of this article, we only included Landbank loan programs that apply to SMEs (sole proprietorships, partnerships, or corporations). SMEs are defined by the Philippine Statistics Authority as enterprises with 10-200 employees and assets of ₱3 million to ₱100 million. Programs that are no longer actively promoted by Landbank as of 2023, such as the Go Green Inclusive Financing Program and I-TECH Lending Program, are also excluded from the list.

Sulong Saka

Landbank loan type: Term loans
Loan term: 1 year to 3 years
Loan amount: Up to 80% of project cost
Interest rate: Regular pricing structure based on identified client sector

The Sulong Saka Program provides financial assistance to farmers and SMEs cultivating high-value crops such as banana, cacao, coffee, oil palm, rubber, and vegetables. 

Under this program, SMEs can avail the following Landbank loans at a special interest rate: Permanent Working Capital (PWC) and Fixed Asset Acquisition/Construction (FAA/C). Borrowers can also access the following Landbank agri-business loans: Agricultural Production Loan, Commodity Loan, and Production Loan.

SME Eligibility Criteria

• Must have a minimum farm area of 0.5 hectare but not more 5 hectares
• Must be a landowner with a land title; or a leaseholder with a notarized lease contract with remaining term at least equal to the loan term
• Must pass Landbank’s Risk Asset Acceptance Criteria
• Must have no existing loan with Landbank or Landbank conduits
• Must have an identified market for their produce, preferably through purchase orders with reliable buyers or traders

Eligible projects for financing

• Production of High Value Crops such as Vegetables (Highland, Lowland, Spices, Legumes); Fruits (Mango, Banana, Pineapple, Others); Industrial Crops (Abaca, Bamboo, Coffee, Cacao, Rubber, Oil Palm) and Alternative Food Staple Crops (Saba-Cardaba, Soybean, Root Crops)
• Establishment of nursery, budwood/mother plant/parent clone gardens
• New Plantation, Replanting, Rejuvenation, Rehabilitation of old trees
• Post-harvest activities (fermentation, drying,) and processing/manufacturing (roasting, grinding/milling, packaging, storage)
• Trading, Export

Landbank business loans and special programs are focused on SMEs in agri-business, manufacturing, trading, and services.

SWINE Lending Program

Landbank loan type: Secured term loans and credit line
Eligible SME borrowers: Commercial hog raisers classified and registered as SMEs, large enterprises, or corporations. Must have certifications from the Department of Agriculture, industry, or integrator.
Loan amount: Up to 80% of project cost
Basis of loan amount: Collateral; project cost; financial statements
Loan term: 1 year to 5 years
Interest rate: 3% per annum (p.a.) for 3 years, subject to repricing thereafter based on market rate but shall not be lower than 3% p.a. A grace period on principal and interest may be allowed.

The SWINE Lending Program stands for Special Window and Interim Support to Nurture Hog Enterprise. It aims to secure an adequate, sustainable supply of pork for the country by providing financing support to the swine industry.

Under this program, SMEs can avail the following Landbank loans at a special interest rate: Working Capital, Permanent Working Capital (PWC), Fixed Asset Acquisition/Construction (FAA/C), and Short-Term Loan Line.

Eligible projects & loan purpose

• Swine production (breeders, grow-out of wean-to-finish hogs)
• Feedmilling operation and other allied businesses (abattoir, meat processing, etc.)
• Swine Production, including acquisition/importation of semen/breeding animals
• Building Construction/Improvement/Retrofitting compliant to biosecurity protocol of the Department of Agriculture (DA)/industry/integrators
• Fixed assets acquisition

Accepted collateral

• Real Estate Mortgage
• Chattel Mortgage
• Other collaterals acceptable to the Bank

Additional documentary requirements

• Certification from BAI that the project area has been released from ASF quarantine;
• Certification from DA RFO TWG on Swine Recovery, Rehabilitation and Repopulation stating that the borrower has complied with all the requirements and is allowed to restock at full capacity.
• LGU Certification for at least Level I Biosecurity classification of Hog Farm
• Project Proposal/Business Plan (including Financial Projections, Source of Equity, List of Suppliers/ Markets or Buyers and Contact Numbers)
• Contract Growing/Breeding Agreement with Integrator, if applicable
• Certification or any similar document from trainors (e.g. DA-ATI, integrators, feed companies, etc.) that borrower has undergone training
• For Production Loan: Farm Plan and Budget
• For Construction/Repairs and Renovation: Cost Estimates/Building Plan and Specification/Bill of Materials and Work Program/Building Permit
• For Acquisition of Machinery/Equipment: Price Quotation of Machinery/Equipment to be acquired

Overseas Filipino Workers – Enterprise Development and Loan Program (OFW-EDLP)

Landbank loan type: Secured term loans
Eligible SME borrowers: Individual OFWs and group of OFWs who formed themselves into a business entity. Must be certified OWWA members (active or non-active) who completed the Enhanced Entrepreneurial Development Training (EEDT) conducted by DTI, Landbank and OWWA.
Loan amount: Maximum of ₱2 million for single proprietorship; maximum of ₱5 million for partnership, corporation, or cooperative
Basis of loan amount: Collateral; borrowers’ equity (min of 20% of the total project cost)
Loan term: 1 year to 7 years. Term Loans can have a maximum two years’ grace period on principal.
Interest rate: 7.5% per annum fixed for the duration of the loan

Formerly known as OFW-Reintegration Program (ORP), OFW-EDLP is an OFW loan from Landbank, Overseas Workers Welfare Administration (OWWA), and the Development Bank of the Philippines. This program provides credit assistance to OFWs and their families to encourage them to run their own business instead of seeking overseas employment.

Under this program, OFWs can avail the following Landbank loans at a special interest rate: Short Term Loan Line and Term Loans.

Eligible projects for financing

• Viable projects belonging but not limited to, the following fields: franchising, agri and non-agri production and marketing, construction, rental, service, trading, transportation
• Contract tie - up with top 1,000 corporations

Accepted collateral

Object of financing and/or other collaterals/securities acceptable to the bank

How to apply 

1. Visit the OWWA Regional Welfare Office that covers the permanent address of the OFW and undergo orientation/eligibility screening and processing/necessary training
2. Secure the required OWWA certification for submission to LANDBANK
3. Visit the LANDBANK Lending Center/ Lending Unit nearest to your place of residence or business for more information and evaluation of project proposals.


Landbank loans have more favorable interest rates for SMEs, but they have a stricter eligibility criteria.

Just like other business loans, Landbank loans present advantages and disadvantages for Philippine SMEs. Businesses that qualify for sector-specific programs, such as farmers, will find Landbank’s loan interest rates and terms more favorable than most loans from commercial banks. Some Landbank loans are even more affordable than DTI loans for MSMEs, this makes sense as both providers are focused on accessible financing for SMEs. Landbank’s government backing, wider reach, and focus on countryside development also enables them to provide better business guidance and financial support to SMEs in remote areas.

However, Landbank’s strict eligibility criteria, lengthy application process, and limited accessibility are considerable drawbacks that SMEs must consider. Businesses with less than 3 years in operations are automatically disqualified. Most Landbank loans require a longer list of business loan requirements than alternative fintech lenders like First Circle. SMEs must also be in the agri-business, manufacturing, trading, or services industries to avail Landbank loans, especially if they wish to apply to Landbank special programs – which require additional certifications, proposals, and budget estimates.

If you need a business loan with an affordable loan interest rate without Landbank’s lengthy processing times and extensive documentation, consider applying for First Circle’s Revolving Credit Line instead. It is a non-collateral credit line from which you can withdraw multiple business loans upon approval. It also has the following benefits:

  • Up to ₱20 million of re-usable credit
  • Interest rates as low as 0.99% per month
  • No application or maintenance fees
  • Application processing in 3 business days
  • Exclusive account manager
  •  Minimal documentary requirements

First Circle is a multi-awarded lending company supporting SMEs since 2016. To apply for a Revolving Credit Line, visit https://www.firstcircle.ph/business-financing/revolving-credit-line.

Ready to get your own revolving credit line?

Apply 100% online, and get a credit line worth up to ₱20M. Use and re-use your credit limit anytime you need a business loan.

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