MANILA - LANDBANK has earmarked P3 billion to help bus operators modernize their fleets, the state-owned lender said on Monday.
The new lending program targets public transport cooperatives and corporations who want to buy modern public utility buses, LANDBANK said.
Bus operators may borrow up to 80 percent of the acquisition cost of the modern bus at a fixed interest rate of 5 percent per annum for the first 3 years—payable up to a maximum of 7 years, inclusive of the two-year grace period on principal, the bank said.
Under the government’s transport modernization program, public utility vehicles that are at least 15 years old need to be replaced with safer, more comfortable, and more environmentally friendly vehicles.
LANDBANK said the lending program will run until Dec. 31 next year.