The Landbank Interim Students’ Loan for Tuitions towards Upliftment of Education for the Development of the Youth (I-STUDY) Lending Program is a government-supported educational loan facility designed to offer a financial lifeline and ease the financial burden on Filipino families during enrollment, especially in light of the financial disruptions caused by the pandemic. Through this program, parents, guardians, and benefactors can access affordable financing to cover tuition, enrollment fees, and even the purchase of electronic gadgets necessary for distance or online learning. This Landbank (LBP) educational loan operates on a Study Now, Pay Later (SNPL) scheme, providing accessible and flexible payment terms for qualified borrowers, regardless if they are in pre-school, primary, secondary, and tertiary level, as long as they are enrolled in schools recognized by CHED, TESDA, or DepEd.
In this guide, we will walk you through the eligibility requirements, loan features, documentary needs, and the step-by-step application process to help you successfully apply for the I-STUDY loan program.
Program Overview
Unlike traditional education loans, the LBP I-STUDY loan provides flexible payment terms, low-interest rates, and different financing options depending on the level of education and the purpose of the loan.
The loan proceeds may be used for:
- Payment of tuition and enrollment-related fees.
- Purchase of electronic gadgets required for online learning.
Loan Features
Some of the features of this program are listed below:
Credit Facility
- Short-Term Loan: For preschool, primary, and secondary education.
- Term Loan: For tertiary education.
Loanable Amount
- Up to PHP 150,000 per student per school year or two semesters.
- Maximum loanable amount: PHP 300,000 per borrower.
- Up to PHP 50,000 per student may be used to purchase gadgets.
- The final approved amount will depend on the school-issued Enrollment Assessment Form or Registration Form with the official fee schedule.
Loan Term
- Short-Term Loan: Payable within 1 year via a 360-day promissory note.
- Term Loan: Payable within 3 years, inclusive of a 1-year grace period on the principal.
Mode of Loan Release
- For Tuition and Enrollment Fees:
- Short-Term Loan: Lump sum credited directly to the school.
- Term Loan: Lump sum per semester credited to the school.
- For Gadget Purchase:
- Term Loan: Lump sum credited to the borrower’s Landbank account.
Interest Rate and Penalty
- Fixed 5% annual interest rate throughout the loan term.
- 24% annual penalty for defaulted loans.
Fees
- Loan processing fee.
- Documentary Stamp Tax.
Collateral and Credit Enhancer
- Clean loan (no collateral required).
- Credit enhancements may include:
- Post-dated checks for scheduled repayments.
- Credit life insurance up to the full loan obligation.
Repayment Terms
- Short-Term Loan: Principal and interest due at promissory note maturity.
- Term Loan:
- Interest payments every quarter during grace period.
- Monthly payments (principal plus interest) start after the grace period.
Who Can Apply?
The program is open to parents, guardians, benefactors, and students who meet specific qualifications. Listed below are the eligibility criteria:
Eligible Borrowers
Parents, Guardians, Benefactors, or Students of Legal Age:
- Must be a Filipino citizen.
- Of legal age with proven repayment capacity.
- Co-borrower is needed if the main borrower is over 60 years old or lacks repayment capacity.
- Should have a good credit history and credit standing.
- Must be a permanent resident or have resided for at least 2 years in their current residence.
- Must have a combined monthly net take-home pay (after loan amortization) of at least PHP 10,000 per enrolled student.
Co-Borrowers:
- Must be a Filipino citizen not older than 60 years old.
- With established repayment capacity and good credit standing.
- A permanent resident or residing for at least 2 years in their current location.
Student Eligibility
- Must be a Filipino citizen.
- Not older than 50 years at the time of application.
- For incoming students: must meet the admission and retention policies of CHED, TESDA, or DepEd-accredited institutions.
- Must possess a Certificate of Good Moral Character issued by the school.
- For non-scholars: must be enrolled in private pre-school, primary, or secondary institutions.
- Not currently receiving free tuition under R.A. 10931 (Universal Access to Quality Tertiary Education Act) or any scholarship granting free full tuition.
- For scholars: must require funding for tuition not fully covered by their scholarship or need financing to purchase gadgets for online learning.
Documentary Requirements
Here are the documents you will need:
Pre-Processing Requirements
For Parents, Guardians, Benefactors, or Co-Borrower
- Completed Loan Application Form.
- For employed individuals:
- Certificate or Contract of Employment.
- Latest 3-month payslips.
- Latest BIR-filed Income Tax Return (ITR).
- For self-employed individuals:
- Business Permit.
- Latest BIR-filed Income Tax Return (ITR).
- Government-issued valid ID.
- Proof of billing address (at least two utility bills showing payment record).
For Students
- Admission slip or Enrollment Form with Student ID for new students; latest Enrollment Form for continuing students.
- Form 138 or certified true copy of grades from the previous semester.
- Certificate of Good Moral Character issued by authorized school personnel.
- Official fee schedule certified by school registrar or authorized personnel.
- For gadget purchase: proof of enrollment in a DepEd/CHED-accredited institution using an online teaching system.
Pre-Release Requirements
- Opening of a Landbank deposit account where the loan will be released and repayments will be debited.
- Updated schedule of school fees certified by the registrar.
- Authority for Landbank to obtain necessary school documents related to the student.
- Borrower’s consent for credit information disclosure.
- For gadget loans: proof of enrollment for the current school year.
Post-Release Requirements
Within 5 days after enrollment:
- Validated Enrollment Assessment Form or Registration Form.
- Teller-validated Bills Payment Slip.
- Valid Student ID (newly issued if applicable).
- Official Receipts for tuition payments.
- Authority to Debit agreement.
- For gadget purchase: official receipts within 5 days of purchase.
Within 2 weeks after the school term:
- Certificate of completion or equivalent document issued by the institution registrar.
Step-by-Step Application Process
To apply for the I-STUDY Lending Program, here are the steps that you need to follow:
Step 1. Secure School Enrollment
Complete enrollment assessment with your chosen school. The school must have a Memorandum of Agreement (MOA) with Landbank.
Step 2. Prepare Required Documents
Gather all the necessary pre-processing requirements for both the borrower and the student.
Step 3. Submit Application
Visit the nearest Landbank Lending Center to submit your loan application along with complete documents.
Step 4. Loan Evaluation
Landbank will evaluate your application and notify you of the approval.
Step 5. Loan Release
Upon approval, the loan will be disbursed according to the mode of release (school or borrower’s Landbank account).
Step 6. Post-Release Compliance
Complete the post-release requirements within the specified timelines.
Video: How to Avail Landbank I-STUDY Lending Program for Students
The Landbank I-STUDY Lending Program provides a financial solution allowing parents, guardians, benefactors, and students to manage educational expenses without overwhelming financial strain. With its straightforward application process, reasonable interest rate, and wide coverage of school-related expenses, this Landbank educational loan makes quality education more accessible to Filipino students. Watch this video to learn more:
Contact Information
For inquiries or further details, you may contact:
Programs Management Department II
- 27th Floor, Landbank Plaza, 1598 M.H. del Pilar cor. Dr. J. Quintos Sts., Malate, Manila
- Phone: (+632) 8405-7198
- Fax: (+632) 8528-8542
Or visit the nearest Landbank Lending Center. You may also check their website at www.landbank.com and follow their official social media channels for updates.