Some Filipinos find themselves drowning in debt due to loan sharks and unregulated online lending apps that lure them in with fast, no-hassle approval, only to trap them in a cycle of repeat borrowing through steep interest rates and fees.

To help address this, the Land Bank of the Philippines is offering small business owners a state-backed loan program as a safer alternative to these unregulated lenders.

A member of Landbank's board of directors Virginia Orogo discussed the program on the "Get It Straight" segment of Good Morning Kuya, hosted by Kuya Daniel Razon on August 10.

Kuya Daniel said online lending apps, or OLAs, typically draw in borrowers with the promise of easy credit, then charge interest rates and fees steep enough to trap them in a cycle of repeat borrowing. He said informal loan sharks operating outside any regulation carry the same risk, often leaving borrowers with debt they have no realistic way of repaying.

Orogo used the segment to introduce the LIFTING MSMEs Lending Program, which she described as a Landbank initiative offering micro, small, and medium enterprises access to capital at fair, workable terms.

She said the program is part of Landbank's mandate as a state financial institution to expand financial inclusion, and gives small business owners a lending option without the risks attached to unregulated apps and lenders.

Kuya Daniel closed the segment urging viewers to think twice before turning to an unregulated lender, and to look into accredited programs such as Landbank's instead.

Watch here: https://www.youtube.com/watch?v=KM3cmy_BxTU