State-owned lender Land Bank of the Philippines has earmarked P3 billion for its lending program for bus operators in need of capital to modernize their fleet.
The initial P3-billion for the Interim Rehabilitation Support to Cushion Unfavorably-affected Enterprises by COVID-19 for Better Urban Services Transport (I-RESCUE for BUS) lending program targets public transport cooperatives and corporations for the purchase of modern public utility buses.
This is in support of the Metro Manila Bus Modernization Program of the Department of Transportation (DOTr) and the Land Transportation Franchising and Regulatory Board (LTFRB), according to the Landbank.
“The I-RESCUE for BUS Transport Lending Program offers responsive financing to PUB (public utility bus) operators to invest in new buses equipped with the latest innovative technology,” Landbank president and CEO Cecilia Borromeo said.
“This also forms part of Landbank’s support to the DOTr and LTFRB towards building a modernized transport system that provides commuters with safe, reliable, and convenient transportation services,” Borromeo said.
Qualified enterprises may borrow up to 80% of the acquisition cost of the PUB, at a fixed interest rate of 5% per annum for the first three years.
The loan is payable up to a maximum of seven years, inclusive of the two-year grace period on principal.
In 2017, the DOTr launched the Public Utility Vehicle Modernization Program in a bid to make the country’s public transportation system efficient and environmentally friendly.
The program calls for the phasing out not just buses but also jeepneys and other public utility vehicles that are at least 15 years old and replacing them with safer, more comfortable, and more environmentally-friendly alternatives
Landbank said the I-RESCUE for BUS Transport lending program is available until December 31, 2021.
“Interested borrowers may contact the nearest open Landbank Lending Center or branch nationwide, or call Landbank’s customer service hotline at (02) 8-405-7000 or at PLDT Domestic Toll Free 1-800-10-405-7000,” the lender said.—AOL, GMA News
This article Landbank earmarks P3B for lending program for purchase of modern buses was originally published in GMA News Online.