LandBank increases lending fund for PUV modernization to P10B

State-run

Land Bank of the Philippines on Sunday said it has hiked anew its lending program funding for transport cooperatives and corporations to P10 billion, for them to comply with the government’s contested Public Utility Vehicle (PUV) modernization program.

LandBank said it has hiked the funding of the Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles (SPEED PUV) program for the third time from the initial funding of P1.5 billion.

The program allows eligible borrowers to loan up to 95% of the total acquisition cost of the modern PUK at an interest rate of 6% per annum or 0.5% per month, payable up to a maximum of seven years.

Also, the program comes with a subsidy of P160,000 per vehicle from the national government for units classified under Class 1, 2, 3, and 4 category models.

“LandBank continues to extend much-need financial support to assist drivers and operators upgrade their fleet, in line with the national government’s transport modernization agenda,” LandBank President and CEO Cecilia

Borromeo said.

“We remain committed to the improvement of the country’s public transport system for the benefit of both transport operators and the riding public,” she added.

LandBank is mandated to promote countryside development while remaining financially viable. It implements the comprehensive agrarian reform program (CARP), provides assistance to small farmers and fisherfolk, and serves as an official depository of government funds.

Just last week Transportation Secretary Jaime Bautista said the PUV Modernization Program will push through, despite the opposi-