No collateral, no problem: LandBank offers P500K loans to iKalinga MSMEs

TABUK CITY, Kalinga — No collateral? No problem—at least for qualified micro, small, and medium enterprises (MSMEs) in Kalinga.

The Land Bank of the Philippines is offering up to P500,000 in collateral-free financing to qualified MSMEs under its Lifting MSMEs program, providing another financing option for entrepreneurs who have difficulty securing traditional loans because they lack assets to use as collateral.

LandBank-Cordillera Administrative Region (CAR) Lending Center Loan Officer Francis Buen discussed the financing option during the Kapihan sa Kalinga held on August 18, 2026, at the Grand Zion Hotel in Bulanao.

Buen said the collateral-free package is intended to help businesses that cannot access financing because they do not have sufficient assets to offer as security. However, he emphasized that a clean credit record remains important even if collateral is not required.

“Meron packages to assist yung mga hindi maka-access ng finance dahil walang collateral up to P500,000... under Lifting MSMEs pa rin yun. Walang collateral, ang importante lang ay malinis ang record natin... importante ay yung face value, kailangan malinis ang record,” he said.

Buen explained that an applicant’s financial history is considered during the evaluation. Unpaid credit card obligations and bounced checks, for instance, may appear in an applicant’s credit record and could affect the assessment of the loan application.

What MSMEs need

While the P500,000 financing does not require collateral, Buen said applicants must still comply with documentary requirements before their applications can proceed.

These include a business permit, DTI business name registration, BIR business registration, and environmental compliance documents from the Department of Environment and Natural Resources (DENR), when required based on the nature of the business.

“Secure mo muna yung requirements sa ibang ahensya kasi pag wala yun, hindi lalakad ang application mo,” Buen said.

Once the necessary documents are secured, LandBank evaluates the business proposal and determines whether the application can proceed.

Buen also clarified that MSMEs do not necessarily have to prepare their business proposals entirely on their own. Technical personnel from the Department of Trade and Industry (DTI) and other concerned government agencies can provide assistance.

He encouraged MSMEs to seek technical assistance from the appropriate agencies when preparing their business plans and loan proposals.

From startup to expansion

The Lifting MSMEs program offers financing packages designed for businesses at different stages of development: Startup, Step-Up, and Level-Up.

According to Buen, the Startup package is intended for those starting a business, particularly micro enterprises, and is designed to help entrepreneurs turn their business ideas into reality.

The Step-Up package, meanwhile, is intended for existing small enterprises seeking to improve and expand their operations.

The Level-Up package is for medium enterprises looking to achieve further growth.

Buen also said LandBank offers financing under its Agri-Senso program for agriculture and agribusiness ventures. Farmers and entrepreneurs planning to establish agriculture-related businesses may also access the bank’s financing packages, subject to applicable qualifications.

He added that although LandBank was originally established in connection with the country’s land reform program and primarily served agrarian reform beneficiaries, its financing services have since expanded to other sectors to support economic activity and sustain the bank’s operations.

The forum highlighted the importance of making financing and other government support programs more accessible to Kalinga entrepreneurs, particularly MSMEs needing additional capital for wages, raw materials, business expansion, and other operating expenses.

For iKalinga entrepreneurs who have been held back by the lack of collateral, the P500,000 collateral-free LandBank financing option offers another potential avenue for accessing capital—provided they meet the program’s requirements and maintain a sound credit record.