• Teachers Loan

    Teachers Loan in the Philippines is the amount that can be borrowed by public and private school teachers, DepEd employees at a very low rate of interest. Teachers can either opt for private lenders or they can borrow the amount from the bank.

    List of institutions that offer Teachers Loan

    There are several banks and institutions that offer Teachers Loan in Philippines. They are as follows:

    • Land bank of the Philippines
    • AgriBank
    • Union Bank
    • Regional or National DepEd Offices

    Features and Benefits of Teachers Loan:

    There are several features of the Teachers Loan. They are as follows:

    • In association with DepEd, Land Bank has come up with a great financial solution called Livelihood Loan Facility. Teachers can get loan of up to Php 500,000 which is equal to what they get over eight months. The rate of interest that they can avail with this loan is as low as 10.5% per annum.
    • With Agribank, teachers can avail PPN (Puhunang Pangkabuhayan ng mga Namamasukan) loan program. The one year loan scheme comes with an interest rate of 0.9% per annum. For a two year loan, the rate of interest is 1% per annum. If the applicant has completed all the requirements, then the disbursement of loan takes only a day.
    • With City Savings Loan offered by Union Bank, a teacher can borrow an amount of Php 875,000 as Teachers Loan. The credit can be paid by the teachers over tenures of 12 months, 18 months, 24 months or 36 months. Union Bank also offers leeway to individuals who intend to repay the loan in 20 months instead of 18 months or 24 months. No pre-termination fee is applicable to this particular program. Also, there are no hidden charges or deductions for insurance. The cash can be disbursed in an hour, provided the paperwork is in place.
    • Educators can choose to take a loan from their nearest DepEd Regional Office or the National Office. The loan solution is known as PPSTA (Program for Public School Teachers Association). With PPSTA Eduk Loan scheme, a teacher in the Philippines can borrow an amount of Php 300,000 at a very low rate of interest.

    Things to consider before going for a Teachers Loan

    There are several things that must be considered before availing a Teachers Loan. They are as follows:

    • Collateral – Various forms of collateral might be asked for by the bank for securing the loan. The monetary deliverables of the teachers (allowances, leave credits, monthly paycheck, etc.) is accepted collateral by Land Bank.
    • Rate of Interest – When teachers are borrowing money, they must always look into the costs associated with it. Information is available on the internet about the various rates of interest offered by the different providers of Teachers Loan. An individual must always consider researching well before applying for a particular Teachers Loan product from a bank or any other institution.
    • Amount to Loan and Maturity of Loan – The term that an individual chooses for the loan can be a deciding factor for the costs associated with the loan. Payments should not be unreasonable. Therefore seeking help of a consultant can be the ideal thing to do. The consultant will assist the applicant and help him / her understand the maximum amount that should be borrowed. This will help in better money management and timely monthly instalment payments.
    • Options for Payment – It is a very bad idea to pay late for the monthly instalments of the loan. However, if the borrower fails to pay an instalment on time then penalty charges will be applicable. Thus, it is very important to find a loan that has a low rate of interest associated with it. Even a short term loan will help a lot regarding the same. The teacher must ensure that the payment for the loan can be done via multiple methods like mobile banking, ATM, etc. so that there no chance of missing deadline for payments.
    • Renewal of Loan – There are several providers of loan in the market today. They offer options for renewal too. If there is a specific reason to make a loan turn into a recurring one, then the borrower must find a lender who offers revolving credit line.

    Eligibility Criteria – Teachers Loan

    There are certain eligibility criteria that one must meet before he / she can apply for a Teachers Loan in Philippines. These are as follows:

    • The minimum age of the applicant must be at least 21 years.
    • The maximum age of the applicant can be 70 years.
    • The applicant must be a citizen of Philippines.
    • The applicant must be a regular employee who has spent at least a time span of a year with the current employer.
    • The monthly gross income of the applicant must be at least Php 10,000.

    Documentation Requirements

    There are certain documents that the applicant must provide when applying for the Teachers Loan in Philippines. They are as follows:

    • 2 copies of latest passport size photographs of the applicant.
    • 2 Valid identity proofs. It is preferable to include the PRC ID.
    • Photocopy of the Appointment record.
    • Photocopy of latest service record.
    • Latest payslips (3 months).
    • Properly filled application form.


    Before availing a loan, teachers must understand the various aspects of the scheme. It is always good to do a research and find out the best plan or scheme available in the market. The rate of interest, hidden charges, tenure of the loan, etc. matter when a loan is being chosen. One must always pick the product that suits their needs the best and allows them to enjoy the peace of mind that they deserve.

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