Land Bank launches new loan program for pensioners, government workers

Land Bank launches new loan program for pensioners, government workers

The Land Bank of the Philippines has introduced the Pension and Emergency Relief Loan Facility, offering loans ranging from ₱20,000 to ₱100,000 at an annual interest rate of 10 percent. This initiative has been praised by Rep. Fidel Nograles, chair of the House Labor and Employment Committee, as a viable alternative to loan sharks for Filipino pensioners and government workers in need of financial assistance during emergencies.

Designed to provide accessible financial aid, the program addresses urgent needs such as medical expenses and other emergencies. It offers two loan options: a pension loan for eligible clients with LandBank pension accounts and an emergency relief loan for regular government employees with LandBank payroll accounts with at least one year of service.

Rep. Nograles expressed concern over the financial struggles of many government workers, including teachers, who often turn to loan sharks. He criticized these lenders for imposing exorbitant interest rates and resorting to tactics like shaming debtors through text messages sent to their friends or relatives to ensure repayment.

“Apart from high interest rates, leaders of loan sharks are embarrassing its debtors through text messages sent to their friends or relatives, in an effort to ensure collection of payment,” said Nograles.