Landbank Philippines Agricultural Loan Program Interest Rates

Securing a reliable source of financing is often a critical challenge for farmers and agribusinesses in the Philippines. The Landbank of the Philippines stands out as a major player in agricultural financing, providing much-needed resources to the rural sector.

As the demand for financial assistance in agriculture grows, particularly in 2025, understanding the variety of loan programs offered by Landbank becomes increasingly important. Therefore, this blog explores the different types of agricultural loans available, current interest rate structures, and application processes, guiding aspiring Filipino entrepreneurs like you on how to benefit from Landbank's programs effectively.

Whether you're a small farmer, fisher, or agripreneur, discover how Landbank's tailored financing solutions can help overcome financial hurdles and enhance productivity.

Landbank's Role in Agricultural Financing in The Philippines - A Brief Overview

Landbank Philippines is an important institution when it comes to agricultural financing in the country, playing a leading role in encouraging growth within the country's rural sector. Recognizing the crucial need for accessible financial resources, Landbank offers various loan programs tailored to support farmers, fishers, and agribusinesses.

Landbank has significantly increased its agricultural loans, reaching PHP 272 billion in the first quarter of 2023, indicating the heightened demand and critical importance of financial assistance in agriculture. According to data from Landbank in October 2024, around PHP 770 billion has been specifically directed towards aiding small farmers and fishers through cooperative and rural financial institutions.

Landbank's offerings go beyond traditional financing; they incorporate strategic programs like the Agricultural Credit Support Project and the AGRISENSO Plus Lending Program. Landbank designed these initiatives to not only provide loans as low as 4% per annum but also to facilitate the inclusion of marginalized groups such as small farmers, fishers, and even young agriculture graduates venturing into agribusiness.

Types of Agricultural Loans Offered by Landbank

The Land Bank of the Philippines offers a variety of agricultural loan programs aimed at supporting farmers, fishers, and agribusinesses. These programs are designed to provide accessible financing solutions to enhance productivity, ensure food security, and promote rural development. Below are some of the key agricultural loan programs offered:​

1. Sulong Saka Program

The Sulong Saka Program provides financial assistance to small farmers and fishers to support their agricultural activities. This program offers accessible credit facilities to enhance productivity and income. Eligible borrowers include individual farmers and fishers, as well as cooperatives and associations. Loan purposes include crop production, agri-enterprise, and livelihood projects. Loan terms are flexible, with competitive interest rates of 5% per annum and manageable repayment schedules. ​

2. Agricultural Credit Support Project (ACSP)

The Agricultural Credit Support Project (ACSP) aims to increase investments and improve agricultural productivity in rural areas. It provides credit support to agriculture and agri-related projects within a value chain. Eligible borrowers include cooperatives, associations, and other conduits involved in agricultural activities.

Loan purposes cover crop production, agri-enterprise, and livelihood projects. Loan tenors vary, with short-term loans not exceeding 1 year and term loans up to 7 years, inclusive of a grace period. Interest rates are competitive, with rebates for prompt payment. Short-term loans are charged an interest of 8.5% per annum, whereas term loans are charged 9.5% per annum.

3. Agricultural and Fisher Financing Program (AFFP)

The Agricultural and Fishers Financing Program (AFFP) provides small farmers and fishers access to formal credit to finance their economic activities. Implemented in partnership with the Department of Agriculture (DA) and the Agricultural Credit Policy Council, this program offers loans for production, acquisition of small farm implements, and other agri-related projects.

Eligible borrowers include individual small farmers and fishers, cooperatives, and associations. Loan terms are tailored to the needs of the borrowers, with a general interest rate of 15% per annum and flexible repayment options. ​

4. Swine Lending Program

The Swine Lending Program is designed to support hog raisers by providing financing for swine production. This program caters to small and medium-scale hog raisers, offering loans for the acquisition of breeding stocks, feeds, and other production-related expenses. Loan terms include competitive interest rates of 3% per annum for 3 years, aligning with the production cycle.

5. RAPID Growth Credit Facility

The RAPID Growth Credit Facility is a collaborative initiative between Landbank and the Department of Trade and Industry (DTI) aimed at increasing the income of small farmers and unemployed rural men and women. The program focuses on the production and processing of cacao, coconut, coffee, and processed fruits and nuts. Loan purposes include fixed asset acquisition, building construction, production loans, working capital, and permanent working capital.

The facility offers loans covering up to 90% of the project cost, with interest rates fixed at 5% per annum for three years. ​

6. Agrisenso Plus Program

​The Agrisenso Plus Program is an enhanced lending initiative by the Land Bank of the Philippines (Landbank) aimed at providing accessible and affordable financing to small farmers, fishers, agrarian reform beneficiaries (ARBs), and agribusinesses. Launched in November 2024, the program offers a fixed interest rate of 4% per annum for small-scale borrowers, with rates ranging from 6.5% to 7.5% per annum for other eligible participants.

7. Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF)

​The Expanded Rice Credit Assistance under the Rice Competitiveness Enhancement Fund (ERCA-RCEF) is a financial program aimed at enhancing the productivity of rice farmers and their cooperatives in the Philippines. It provides accessible credit facilities with minimal interest rates and collateral requirements to support various activities, including rice production, acquisition of agricultural machinery, and establishment of processing facilities.

Managed by the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP), the program covers 59 provinces, offering loans for purchasing farm inputs, working capital, and equipment acquisition at interest rates of 2% per annum.

8. Coconut Farmers and Industry Development (CFID) Lending Program

​The Coconut Farmers and Industry Development (CFID) Lending Program is an initiative by the Land Bank of the Philippines (Landbank) aimed at enhancing the productivity and income of coconut farmers, cooperatives, and associations across the country. This program offers both short-term and long-term loans starting at PHP 1 million, featuring a fixed interest rate of 2% per annum.

Eligible borrowers can utilize these funds for various purposes, including increasing production, acquiring machinery and equipment, establishing necessary facilities, and integrating intercropping or livestock into coconut farms.

Each program targets specific needs, yet for those unique cases where traditional loans might not fit, N90's flexible funding solutions might offer the tailored approach some agricultural enterprises are seeking.

For a deeper insight into Landbank's approach and impact on rural development, this video provides a brief yet enlightening overview.

Also Read: Top 10 Philippine Rural and Cooperative Banks by Total Assets

Landbank Agricultural Loans Eligibility Criteria

Landbank's agricultural loan programs are designed to help farmers, fisherfolk, and agribusinesses access financing for various agricultural activities, including crop production, livestock farming, and agri-business expansion. Understanding the eligibility criteria is essential to determine if you qualify for these loan programs.

Below are the key requirements that applicants must meet:

1. Filipino Citizen or Filipino-Owned Business: To qualify for Landbank's agricultural loans, applicants must be Filipino citizens or Filipino-owned businesses. For business entities, ownership must be at least 60% Filipino, with the remaining ownership allowable to foreign investors in accordance with Philippine laws. This ensures that the loans benefit local farmers and businesses.
2. Agricultural or Agribusiness Focus: The applicant must be directly involved in agriculture or agribusiness. This includes farmers, fisherfolk, cooperatives, and other entities engaged in farming, fishing, processing, or distribution of agricultural products. Loan programs are targeted at those whose activities contribute to the growth of the Philippine agricultural sector.
3. Financial Capability to Repay: Landbank evaluates the financial capacity of applicants to repay the loan. This is assessed based on the business's profitability, cash flow, and financial history. For individuals, proof of steady income or assets may be required. This ensures that borrowers can meet their repayment obligations without undue financial strain.
4. Business Registration or Legal Status: For business entities such as cooperatives, corporations, and partnerships, legal registration with the Securities and Exchange Commission (SEC) or Department of Trade and Industry (DTI) is required. Sole proprietors must present their DTI business name registration. This establishes the applicant's legal standing to borrow and repay the loan.
5. Proof of Land Ownership or Lease Agreement: In most cases, you must provide proof of land ownership or a valid lease agreement for agricultural property. This requirement is important for secured loans, as the land or property may be used as collateral for the loan. It demonstrates that you, the borrower, have access to the necessary land for the agricultural activities funded by the loan.
6. Creditworthiness: Landbank requires a creditworthiness assessment to ensure that you have a good credit history and are likely to repay the loan. This includes reviewing your past loan repayment behavior and current debts. For businesses, the financial stability and payment history of the entity are evaluated.
7. Viable Business Plan or Project Proposal: You must submit a business plan or project proposal detailing the intended use of the loan. This includes outlining the goals of the agricultural project, expected outputs, and how the loan will help improve productivity or profitability.
8. Compliance with Government Regulations: You must comply with relevant government regulations regarding the agricultural industry. This includes obtaining necessary permits, certifications, or clearances from regulatory bodies such as the Bureau of Animal Industry (BAI) or Department of Agriculture (DA), depending on the type of agricultural business.
9. No Outstanding Liabilities with Landbank: You must not have any outstanding loans or liabilities with Landbank. If you do, you must settle those obligations before applying for a new loan. This ensures that only creditworthy individuals or entities are granted further loans, preventing potential defaults or financial risks.
10. Collateral Requirements: Landbank's collateral requirements provide some flexibility. For small-scale loans, Landbank may accept revenue assignments, such as earnings from farm produce or insurance policies. More substantial loans might require real estate or chattel mortgages on equipment. It's worth noting that CARP-distributed lands cannot typically be used as collateral until they are fully paid, presenting a unique challenge for you.

Also Read: Forms of Government Assistance for Small Businesses in The Philippines

Landbank Agricultural Loans Application Process

Accessing financial support for agricultural ventures is streamlined through the Land Bank of the Philippines, which offers various loan programs tailored for farmers, fisherfolk, and agribusinesses. Below is a detailed guide to the application process:​

1. Determine Eligibility and Select Appropriate Loan Program: Identify the loan program that aligns with your needs, such as the Agricultural and Fisheries Financing Program (AFFP), Agricultural Competitiveness Enhancement Fund (ACEF), or others. Each program has specific eligibility criteria and benefits. ​

2. Prepare Required Documentation: Gather necessary documents, which may include:​

• Loan Application Form: Complete the official form provided by Landbank.
• Identification: Valid IDs of borrowers or business owners.
• Business Registration: For sole proprietorships, a DTI certificate; for partnerships or corporations, SEC registration and Articles of Incorporation.
• Financial Statements: Audited financial statements for the past three years, if applicable.
• Project Proposal: Detailed plan outlining the intended use of the loan.
• Additional Documents: Barangay clearance, farm plan, or other documents as specified by the chosen loan program.
  Considering alternative lenders like N90, which often require less complex documentation, can be a time-saving approach for securing necessary funds swiftly.

3. Submit Application: Submit your completed application and supporting documents to the nearest Landbank Lending Center or branch. Some programs may offer online submission options. ​
4. Application Assessment and Processing: Landbank will review your application, which includes evaluating the feasibility of your project, creditworthiness, and completeness of documentation. This process may involve background checks and site visits.​
5. Loan Approval and Agreement: Upon approval, you will receive a loan agreement detailing the loan amount, interest rate, repayment terms, and other conditions. Review and sign the agreement to formalize the loan.​
6. Fund Release and Utilization: After agreement finalization, the loan amount will be disbursed according to the agreed terms, either as a lump sum or in installments. Utilize the funds as outlined in your project proposal.​
7. Repayment and Compliance: Comply with the repayment schedule and maintain communication with Landbank. Timely payments and compliance with loan terms are crucial for maintaining a positive borrowing record.

Also Read: Small Business Startup Loans for Minorities Guide

Benefits and Challenges of Landbank Agricultural Loans

Landbank agricultural loans are designed to support farmers, fisherfolk, and agribusinesses in the Philippines, but while these loans offer many advantages, they also come with certain challenges that applicants like you need to be aware of. Here's a detailed look at the challenges of these loans in greater detail:

1. Complex Documentation Requirements: The application process often requires multiple documents, such as business plans, financial statements, and proof of land ownership. For small-scale farmers, gathering all the necessary documentation can be a lengthy and difficult task.
2. Strict Eligibility Criteria: Landbank has specific eligibility criteria for its loan programs, including creditworthiness assessments and business viability checks. Some farmers and agribusinesses may find it difficult to meet these requirements, limiting their access to loans.
3. Long Processing Times: While Landbank provides valuable financing options, the loan processing time can be lengthy due to the review of applications and supporting documents. This can delay access to funds, especially for businesses in urgent need of financial support.
4. Repayment Challenges During Off-Season: Despite flexible terms, some agricultural businesses may struggle with repayments during off-seasons when cash flow is limited. This can create challenges in maintaining timely payments and sustaining business operations.
5. Geographical Limitations: Although Landbank aims to serve farmers and agribusinesses nationwide, its loan programs may not always reach remote areas efficiently. Farmers in far-flung regions may face logistical challenges in submitting applications and meeting compliance requirements.

Conclusion

In conclusion, Landbank's Agricultural Loan Program provides competitive interest rates designed to support farmers, fisherfolk, and agribusinesses. With its flexible terms, Landbank aims to promote growth in the agricultural sector, ensuring that loans are accessible and affordable to help businesses thrive. By offering reasonable rates and targeted loan programs, Landbank plays a key role in enhancing agricultural productivity and sustainability in the Philippines.

For entrepreneurs looking to start or grow their agricultural businesses, NBFIs like N90 offer fast and flexible financing options. N90's SME loans, invoice financing, and bridge loans are designed to meet the financial needs of businesses in the agricultural sector. These solutions help entrepreneurs secure quick capital for expansion, purchase of equipment, or working capital, just like Landbank's programs. Connect with us at N90 today to learn more.

Frequently Asked Questions (FAQs)

1. Which bank is best for a loan against agricultural land in the Philippines?

Land Bank of the Philippines is one of the best banks for loans against agricultural land in the Philippines. They offer competitive interest rates and flexible repayment terms under their Agricultural Loan Program, supporting farmers, fisherfolk, and agribusinesses. Their deep focus on agriculture ensures tailored financial solutions for landowners.

2. What is the average interest rate for a farmer's loan in the Philippines?

​The average interest rate for agricultural loans in the Philippines varies depending on the source and type of loan. According to the Bangko Sentral ng Pilipinas, for the week ending January 29, 2025, the high and low rates for agrarian reform and other agricultural loans ranged from 6.22% to 10.15% per annum.

3. What is the age limit for getting an agriculture loan?

​The age eligibility for agricultural loans in the Philippines varies depending on the specific loan program:​

• Agri-Negosyo Loan Program (ANYO): No age limit is specified for individual borrowers. ​
• Young Entrepreneurs from School to Agriculture Program (YESAP): Applicants must be between 18 to 35 years old at the time of loan application. ​
• Kapital Access for Young Agripreneurs (KAYA): Targeted at young entrepreneurs aged 18 to 30 years old, including agri-fishery graduates.

4. Can a foreigner apply for an agricultural loan in the Philippines?

​In the Philippines, agricultural loan programs are primarily designed for Filipino citizens, including small farmers, fisherfolk, cooperatives, and agribusinesses. Programs such as the Agricultural and Fisheries Financing Program (AFFP) and the Agri-Negosyo Loan Program are targeted towards these groups to enhance agricultural productivity and support agribusiness development.