Landbank dangles P3.1 billion in loans for PUV modernization

File photo
File photo

TO HELP transport cooperatives and corporations comply with the National Government’s ongoing public utility vehicle (PUV) modernization program, a state-run bank has increased the funds in its loan program to P10 billion.

“Our transport operators can borrow funds to purchase modern jeepneys,” said Eulalio Lagapa Jr. on Wednesday, April 19, 2023. Lagapa is the vice president of the Cebu North Lending Center of the Land Bank of the Philippines (LBP).

This is the second budget increase made by the LBP for the program, which had an initial funding of P1.5 billion for the “Special Package for Environment-friendly and Efficiently-Driven Public Utility Vehicles (Speed PUV)” program in 2019.

Two years after the Speed PUV was launched, the funds for it was doubled, from P1.5 billion to P3 billion.

Lagapa said the program requires a five percent equity for vehicle buyers and will allow transport operators to borrow up to 95 percent of the total cost of the modern PUV.

The loan has an interest rate of six percent per annum or 0.5 percent per month, which is payable up to seven years.

Subsidy

The program also comes with a subsidy of P160,000 per vehicle from the National Government.

Lagapa said the loan program was developed to aid the government’s public transportation modernization initiative, which is led by the Department of Transportation and the Land Transportation Franchising and Regulatory Board.

He clarified that the loan program is offered to transport cooperatives and corporations only. Loan applicants who do not belong to any consolidated entity will not be accommodated.

Lagapa advised those who are planning to avail themselves of the loan program to visit the nearest lending center so they can be guided by account officers. The loan processing time is around 45 working days upon the completion of the requirements.

Lagapa revealed that as of January 2023, the bank has lent a total of P6.9 billion out of the P10 billion for the purchase of over 3,120 MPUVs.

“We have already approved and financed P6.9 billion for 144 transport cooperatives and corporations nationwide,” he said.

Lagapa said there are already several Cebu-based cooperatives and corporations that have borrowed money from the bank to modernize their fleet of vehicles.

To make sure the funds are used for their intended purpose, Lagapa said they have account managers who follow up with the borrowers to check the movement and appropriation of the borrowed funds.

Lagapa said those who do not comply with the payment agreement will be asked to pay a penalty, which is equivalent to the standard rate of 24 percent of the amount due for the year.

He said uncooperative borrowers may face closure of business and forfeiture of properties if they fail to make their loan payments.

Trending

No stories found.

Just in

No stories found.

Branded Content

No stories found.
SunStar Publishing Inc.
www.sunstar.com.ph