LANDBANK helps Isabela co-op’s multi-billion growth

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NAGUILIAN, Isabela – Small businesses and salaried employees in Brgy. Magsaysay previously struggled with hefty loan interest rates imposed by informal lenders, which reached as high as 30% per annum.

Marie Dee Belagan, then working as a government auditor, saw how members of their community were forced to avail of loans despite the high interest rates due to limited financing options.

This sparked Marie Dee’s dream to establish an affordable lending service that will genuinely help local businesses and families in their community.

Her dream came to life in 2008 when she founded the Providers Savings and Credit Cooperative (PSCC) along with 23 of her co-workers, who each shelled out P500.00 as contribution to their initial fund. With a total of P12,000 as capital, the co-op started offering loans with a much lower interest rate at 1.6% per month.

As members of their co-op continued to increase, so did the capital they needed to sustain their operations. In 2009, Marie Dee decided to seek additional funding from the Land Bank of the Philippines (LANDBANK) and was granted a P3-million loan to finance the co-op’s working capital.

“There was a point where we could no longer accommodate new borrowers because we did not have enough funding. This is why we sought the assistance of LANDBANK – to help us continue our mission,” said Marie Dee Belagan, Chairperson of the now called Providers Multi-Purpose Cooperative (Providers MPC).

LANDBANK remains a faithful partner of Providers MPC, helping it grow from a small-town community lender to one of the biggest co-ops in Isabela with 26,000 members and 8 branches.

The co-op’s loan line with LANDBANK has now increased to P1 billion to finance its working capital for relending and deposit services, as well as requirements for various businesses including real estate, healthcare, and transport.

From an initial capital of P12,000, Providers MPC’s capital has grown to P1.8 billion with total assets now at P5 billion.

More importantly, aside from assisting enterprises, the co-op is also able to help over 2,000 farmer-members through agricultural lending and mechanized farming services.

“Without LANDBANK, we wouldn’t be Providers MPC. LANDBANK helped us grow and give back to the community,” said Chairperson Belagan.

Advancing digital banking in Isabela

As part of LANDBANK and Providers MPC’s shared goal of providing accessible and inclusive financial services, the co-op serves as the Bank’s Agent Banking Partner (ABP) in Isabela, specifically in the municipalities of Naguilian, Cabagan, and Tuguegarao City in Cagayan.

Through LANDBANK’s digital banking platforms, Providers MPC is able to conveniently facilitate the co-op’s business transactions, including collection of loan amortization fees, bills payment, and fund transfers, among others.

As an ABP, Providers MPC offers basic banking services on behalf of the Bank, such as card sale, cash-in, cash-out, fund transfer, and bills payment.

The co-op likewise offers its members a cashless method of paying loan amortization through LANDBANK Point-of-Sale (POS) terminals.

To facilitate transactions such as online fund transfers and bills payment, the co-op utilizes WeAccess, LANDBANK’s corporate internet banking platform.

“Napaka-useful and convenient ng digital banking platforms ng LANDBANK. Napadali ‘yung pag-provide namin ng service sa aming members because of these platforms,” said Providers MPC Chief Executive Officer Caroljean O. Aggabao.

Under the Agent Banking Program, LANDBANK initiates partnerships with client cooperatives, associations, rural banks, local government units (LGUs), and micro, small and medium enterprises (MSMEs), and private entities to help provide basic banking services to areas with limited or no LANDBANK presence.

As of end-April 2023, LANDBANK has 1,743 ABPs all over the country servicing underserved and unbanked communities.