LANDBANK, STI ink P250M agreement to fund ‘study now, pay later’ scheme

The Land Bank of the Philippines (LANDBANK) and STI Education Services Group, Inc. (STI-ESGI) signed a P250-million Term Loan Rediscounting Line agreement under the ACADEME (ACcess to Academic Development to Empower the Masses towards Endless Opportunities) Lending Program to finance the institution’s ‘study now, pay later’ program for its students amid the financial difficulties facing families due to the COVID-19 pandemic.

LANDBANK President and CEO Cecilia C. Borromeo, STI-ESGI Executive Committee Chairman Dr. Eusebio H. Tanco and STI-ESGI Chief Executive Officer Monico V. Jacob led the virtual signing, held on July 24, 2020. The event was witnessed by STI-ESGI Chief Finance Officer and Treasurer Yolanda M. Bautista, and LANDBANK Agricultural and Development Lending Sector Officer-In-Charge 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, as well as post-graduate and associate programs.

 

“We would like to 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,” LANDBANK President and CEO Borromeo said in her message.

 

Other academic institutions which also availed of the LANDBANK ACADEME Lending Program include Medical Colleges of Northern Philippines, Inc. (MCNP) and the International School of Asia and Pacific, Inc. (ISAP) in the province of Cagayan. And at least 80 more private educational institutions have expressed interest in accessing the credit facility.

 

“Almost 70% of our students are supported by overseas workers, who are being repatriated during this pandemic. This LANDBANK facility provides the much needed relief. STI has also agreed not to pass on the 3% interest of this facility. We will absorb this cost, and we thank LANDBANK for being the first bank to offer a study now, pay later plan. We are committed to the education of our youth, and we are happy to work with LANDBANK to make sure their future will continue to be bright and hopeful,” STI-ESGI CEO Jacob said in his response.

Launched in May 2020, the LANDBANK ACADEME Lending Program aims to provide credit support to private high schools, private technical and vocational education training institutions, as well as Higher Education Institutions (HEIs) such as colleges and universities, in providing continuing education to their students, through their parents or benefactors, under a ‘study now, pay later’ program.

 

LANDBANK 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% 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 3% per annum, payable based on the maturity of the sub-promissory notes, but not to exceed three (3) years.

 

For more details about the Program’s features and application requirements, 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.