The LandBank SPEED PUV (Special Package for Environment-Friendly and Efficiently-Driven Public Utility Vehicles) Loan Program is a financing initiative developed by the Land Bank of the Philippines to support the government’s Public Utility Vehicle Modernization Program (PUVMP). Launched in 2017, this loan program provides affordable financing options to transport cooperatives and corporations for the acquisition of modern, environment-friendly PUVs such as Euro 4-compliant or electric jeepneys and buses. It was created in response to the urgent need to modernize the country’s outdated and often unsafe public transport system.
The SPEED PUV Program aims to make the transition to modern PUVs financially viable for small operators by offering low interest rates, long repayment terms, and minimal equity requirements. Its broader goal is to promote inclusive mobility, cleaner air, and a safer commuting experience for the public. With up to 95% of the vehicle acquisition cost covered and a fixed 6% annual interest rate, this program provides affordable financial assistance to transport cooperatives and corporations looking to upgrade their fleet, consequently shaping the future of public transportation in the Philippines while also addressing economic and environmental challenges.
Program Overview and Objectives
The LANDBANK SPEED PUV Loan Program is an initiative designed to support the national PUVMP. Its main objectives including the following:
- Align LANDBANK’s financing process with the regulatory requirements of DOTr, LTFRB, LTO, and MARINA.
- Make financing more accessible for new or smaller transport cooperatives by easing capital requirements.
Loan Features
The loan is intended for the acquisition of PUV units compliant with the Philippine National Standards (PNS). It also offers the following features:
- Loan Type: Term loan
- Loanable Amount: Up to 95% of the acquisition cost or repayment capacity, whichever is higher
- Equity Requirement: At least 5% of the unit’s cost
- Interest Rate: Fixed at 6.00% per annum
- Term: Maximum of 7 years based on borrower cash flow
- Collateral: A choice of any of the following:
- Chattel mortgage on the vehicle
- OR/CR under the borrower’s name
- Comprehensive insurance with Act of God coverage endorsed to LANDBANK
- Loan Release: The loan is released in any of the following methods:
- Issuance of a Letter of Guarantee to the supplier upon loan approval
- Payment directly to the supplier’s LANDBANK account
- Repayment: Repayment can be done via the following:
- Equal monthly amortizations
- Auto-debit arrangement via a dedicated LANDBANK Debt Service Reserve Account (DSRA)
- DSRA must maintain a balance equivalent to two months’ amortization
- DSRA linked to the Automatic Fare Collection System (AFCS) within 180 days of loan release
Government Support
The program also offers a subsidy of P160,000 per unit for Class 1 to 4 vehicles under the PUVMP. As of January 2023, LANDBANK had approved P6.9 billion in loans to 144 transport cooperatives, funding the acquisition of over 3,120 modern jeepneys. The program’s total fund has been raised to P10 billion.
Benefits
Availing the LandBank SPEED PUV Loan Program offers several benefits that make public transport modernization more accessible and sustainable for operators:
- Affordable Financing: Low interest rates and generous loan terms make repayment manageable for small operators.
- Minimal Equity Requirement: Borrowers may only need to shoulder as low as 5% of the vehicle cost.
- Flexible Repayment Terms: Loans can be paid over a period of up to 7 years, with possible grace periods.
- Access to Modern Vehicles: Enables acquisition of brand-new, environment-friendly, and safer PUV units.
- Support for Cooperatives: Tailored to benefit transport cooperatives and small operators under the PUVMP.
- Compliance with Government Mandates: Helps operators meet requirements under the PUV modernization program.
- Environmental Impact: Encourages the use of low-emission or electric vehicles, contributing to cleaner air.
- Increased Passenger Trust: Safer and more comfortable PUVs attract more commuters, boosting revenue.
Who Can Apply?
Eligible borrowers include:
- Public Transport Cooperatives registered with the Cooperative Development Authority (CDA)
- Corporations registered with the Securities and Exchange Commission (SEC)
- Applicants must have an approved route under the LTFRB’s Omnibus Franchising Guidelines (OFG)
Qualifications
To qualify for the program, applicants must meet the following eligibility criteria:
- Must be a Filipino citizen: Individual applicants should be of legal age and Filipino nationality.
- Registered Transport Cooperatives or Corporations: Must be duly registered with the Cooperative Development Authority (CDA) or Securities and Exchange Commission (SEC).
- Must be part of the Public Utility Vehicle Modernization Program (PUVMP): Applicants should be aligned with the goals of the PUVMP and endorsed by the Department of Transportation (DOTr) or Land Transportation Franchising and Regulatory Board (LTFRB).
- Franchise holder or with a provisional authority to operate: Should possess a valid franchise or provisional authority for PUV routes.
- Good credit standing: Applicants must not have adverse findings with banks or financing institutions.
- Must submit complete loan application requirements: Including a business plan, financial documents, and vehicle procurement details.
Required Documents
Before applying, you need to prepare the following:
Pre-Processing Requirements
- Certified true copy of CDA or SEC registration
- Board Resolution from the transport entity
- BIR Certificate of Registration and TIN
- SSS registration
- List of officers with resumes and TINs
- Audited Financial Statements (for existing businesses)
- Location map and photos of the garage
Pre-Release Requirements
- LTFRB Documents:
- For developmental routes: Notice of Selection
- For existing routes: Certificate of Franchise Consolidation or Verification
- Supplier certification confirming PNS compliance of units
- Lease agreement or proof of garage ownership
Post-Release Requirements
- LTFRB Provisional Authority to Operate (within 5 working days of issuance)
- Certificate of Public Convenience (CPC) (within 5 working days of issuance)
- OR/CR registered under the borrower’s name (within 10 working days from loan release)
- Registered chattel mortgage on the vehicle (within 10 working days from loan release)
- Endorsed comprehensive insurance (within 10 working days)
- Vehicle Maintenance Agreement from the supplier or third-party service provider
Loan Application Process
For a detailed guide on how to apply for the program, here are the steps that you need to follow:
Step 1. Prepare Your Application
Gather all necessary documents including financial statements, projected income, business history, and the required LTFRB certifications.
Step 2. Submit the Application
Visit the nearest LANDBANK Lending Center or Branch.
Step 3. Evaluation
LANDBANK reviews your documents and conducts credit assessment.
Step 4. Approval and Agreement
Upon approval, sign the loan agreement.
Step 5. Disbursement
Funds are disbursed directly to the vehicle supplier’s LANDBANK account.
Step 6. Post-Release Compliance
Submit post-release documents within the specified timeline.
Video: Fix Financing Woes of Driver, Operators First – Sen. Chiz Escudero
The LANDBANK SPEED PUV Loan Program is a major support initiative for transport cooperatives and operators under the government’s jeepney modernization agenda. It offers accessible financing, generous loan terms, and comprehensive assistance to help ensure a smooth transition to modern, safer, and more efficient public transportation. This financial assistance program is part of the broader effort to enhance mobility, sustainability, and operational standards across the Philippines’ transport system. Nevertheless, some lawmakers call on the government to focus on helping solve the financial woes of drivers and operators first, before pushing for the PUVMP and even offering programs like SPEED PUV to push for it. Watch this video to learn more about what they have to say:
Contact Information
Interested parties may inquire through:
- Any open LANDBANK Lending Center or Branch nationwide
- Customer Service Hotline: (02) 8-405-7000
- Domestic Toll-Free: 1-800-10-405-7000 (PLDT only)