LANDBANK, STI ink contract for student loan amid COVID
The Landbank of the Philippines and STI Education Services Group, Inc. (STI-ESGI) signed a P250-million term loan rediscounting line agreement under the Access to Academic Development to Empower the Masses towards Endless Opportunities (Academe) lending program to finance the institution’s study now, pay later program for students amid the financial difficulties facing families due to the Covid-19 pandemic.
Landbank President and Chief Executive Officer Cecilia C. Borromeo, STI-ESGI Executive Committee Chair Eusebio H. Tanco, and STI-ESGI CEO Monico V. Jacob led the virtual signing on July 24 witnessed by STI-ESGI Chief Finance Officer and Treasurer Yolanda M. Bautista, and Landbank Agricultural and Development Lending Sector OIC Senior Vice President Ma. Celeste A. Burgos.
The STI-ESGI, which is the largest subsidiary of STI Holdings, is the first academic institution that availed of the Academe Lending Program. The institution offers secondary and tertiary programs and post-graduate and associate programs.
“We thank chairman Tanco and the rest of STI-ESGI management team for putting faith in Landbank and our academe program to finance and ensure the enrollment of around 15,000 to 25,000 students in STI colleges and academic centers this upcoming school year,” Borromeo said.
Other academic institutions that also availed of the Landbank Academe Lending Program include Medical Colleges of Northern Philippines, Inc. and the International School of Asia and Pacific, Inc. in Cagayan. At least 80 private educational institutions have also expressed interest in accessing the credit facility.
“Almost 70 percent of our students are supported by overseas workers, who are being repatriated during this pandemic. This facility provides the much needed relief. STI has also agreed not to pass on the percent interest of this facility. We will absorb this cost,” Jacob said.
He thanked Landbank for being the first bank to offer a study now, pay later plan.
Launched in May, the Landbank Academe Lending Program aims to provide credit support to private high schools, private technical and vocational education training institutions, and higher education institutions in providing continuing education to students.
The bank allotted P3 billion for the program, which offers refinancing or rediscounting of promissory notes issued by the parents or benefactors of students for school loans.
Eligible schools can borrow up to 70 percent of the sub-promissory notes on a per semester basis, and subject further to a maximum amount based on the school’s net borrowing capacity, with a very low fixed interest rate of three percent per annum, payable based on the maturity of the sub-promissory notes, but not to exceed three years.
Contact the nearest Landbank lending branch nationwide or call customer service hotline (02) 8-405-7000 or PLDT Domestic Toll Free 1-800-10-405-7000. – Press release