Land Bank accepts tax declarations as collateral for loans

By Gina Dizon

BONTOC, Mountain Province -- Project proposals to the agricultural competitiveness enhancement fund (ACEF) lending program of Land Bank now accept tax declarations as collateral to agricultural loans.

Through a phone interview, Albert Galut, Account Officer of Land Bank said that higher authorities of Land Bank recently considered tax declarations as security for ACEF loans when requirement of land titles was brought to the attention of Land Bank’s management.   

Earlier, some 250 farmer applicants from Mountain Province to the ACEF program of Land Bank were not able to have their proposals approved due to lack of land titles to back up their proposals as security for loan where Land Bank earlier does not accept tax declarations as collateral.

Dominga Cabato, agri business officer of the office of the provincial agriculturist (OPAG) of this Province said  that Land Bank officials informed her that tax declarations can now be accepted as collateral to their loan applications.

Tax declarations are commonly perceived to cover ‘ownership’ to land property in the highlands. Land titles in the highlands have long been not applicable due to the long time provision of PD 705 classifying lands 18% in slope and over as inalienable and indisposable and thus public land or government forest reserve.

Land Bank earlier required land titles as collateral. 

Cabato said other requirements for the ACEF loan aside from the tax declaration are location survey map, barangay certification, endorsement from the municipal agriculturist (OMAG) and business proposal with proposed cash flow.  

The ACEF lending program aims to provide credit to farmers and fisherfolk and their cooperatives and associations and micro and small enterprises to increase their productivity; and establish an agricultural lending program that enhances competitiveness of target project beneficiaries or sectors especially the small farmers and fisherfolk.

ACEF provides for a 2% interest per annum and open to individual farmers and fisherfolk, micro and small enterprises, farmers and fisherfolk cooperatives and associations and conduits.

Livelihood and agri-enterprise loans offer up to  P1 million per farmer/fisherfolk and to farmer and fisherfolk coop/association up to P5 million per project per borrower.

Eligible projects are purchase of farm input and equipment or farm improvement, acquisition or establishment of agri-based production and post-production and processing machineries, equipment and facilities, and relending to farmers and fisherfolk.

Galut said opun notice and invitation, concerned Land Bank officers and staff shall be visiting ACEF loan applicants in Mountain Province for orientation and assessment.