Landbank launches ‘study now, pay later’ program with zero interest for students

Metro Manila (CNN Philippines, May 8) — The Landbank of the Philippines has launched a “study now, pay later” program to help students in select academic institutions to continue their education. amid financial difficulties due to the coronavirus pandemic.

Landbank’s Access to Academic Development to Empower the Masses towards Endless Opportunities (ACADEME) lending program aims to loan money to educational institutions, which they can in turn relend to their students.

The bank’s lending program offers zero interest to students.

Generoso David, Landbank assistant vice president for program management , said they are targeting private non-DepEd junior and senior high schools, private technical, vocational educational training institutions, and private higher educational institutions.

“’Yung mga parents definitely nahihirapan sa cash flow nila ngayon. Pumapasok kami para matulungan ang mga estudyante para tuluyan pa rin silang makapa- enroll,” David told CNN Philippines on Friday.

[Translation: Parents are definitely having a hard time right now with their cash flow. We are coming in to help students so that they will still be able to enroll.]

David added that while loans to students will have zero interest, lending to schools will be charged 3%.

“It is very low considering the market rate,” he said.

The repayment scheme depends on the arrangement of the students with their school. It can be after the semester, after the school year, or even until graduation.

David said this can also help academic institutions in keeping the number of their enrollees up despite the current health crisis and economic downturn.

“It is to enable them to increase their number of enrolees. The more number of students, the more revenue income,” David added.

In an interview on September 28, David introduced the bank’s Interim Students’ Loan for Tuition towards Upliftment of Education for the Development of the Youth (I-STUDY) program to help students.

David told CNN Philippines the loan will be available for students not over 30 years old and will be enrolling for the 2021-2022 school year.

Eligible borrowers can loan up to P150,000 per school year; while up to two students per family can take part.

“The interest rate for the student is five percent per annum. Six for the entire of the loan, and it is released either lump sum for the semester or it can also be a short-term loan line na payable within a year,” David said.

The requirements for application are posted on Landbank’s website.