The Department of Education (DepEd) has increased the ceilings on the Provident Fund (PF) loans to further assist teachers and non-teaching personnel with their financial needs.
“Even as we are seeing the light at the end of the tunnel of this public health situation, we are determined to implement financial policies that can help our teachers and personnel fully recover from the impact of the pandemic,” Education Secretary Leonor Magtolis Briones said.
On the amended orders that prescribe the Maximum Loanable Amount and delegates Approving Authorities under DepEd Provident Fund Program, the ceilings for a PF Multi-Purpose Type Loan is P100,000.00, while Additional Loan (for extreme cases) Type is now at P200,000.00, from the previous P100,000.00.
Thus, a Provident Fund member can borrow a maximum of P300,000 from the Provident Fund.
The fund’s beneficiaries are teaching and non-teaching personnel from Central, regional, division, and other field offices of the Department who have permanent and regular status of employment and who are subjected to official payroll deductions.
“By adjusting the ceiling of additional PF loan for extreme cases by P100,000.00, we have provided our DepEd Regional Provident Fund (PF) Chapters more flexibility to assist our field personnel on their financial needs,” Undersecretary for Finance Annalyn Sevilla said.
In the amended increase for both types of PF loans, the contractual interest rate is 6 percent per annum. It may be paid from one to five years, depending on the capacity to pay by DepEd borrower, which is subject to the net take-home pay requirement set under the Authorized Deductions, General Provisions of the Annual General Appropriations Act.
Moreover, the approving authorities for the approval of said loans per PF Chapter, as an addendum to DO 37, series of 2018, shall be as follows:
-For Central Office Chapter, the Recommending Approval is from the Head, PF National Board of Trustees (NBT) Secretariat, and the approval will come from Undersecretary for Finance.
-For Regional Offices, the Recommending Approval is from the Head, Regional PF Board Secretariat, and the approval will come from Regional Director.
-For Schools Division Office, for the Multi-Purpose Loan, the Recommending Approval is from the Head Schools Division PF Board Secretariat, and the approval will come from Schools Division Superintendent (SDS). Meanwhile, for the Additional loan, the Recommending Approval will come from SDS and Head, Regional PF Board Secretariat, and the approval will come from the Regional Director.
For more information about the issuance and PF loans, contact the Employee Account Management Division, the PF NBT Secretariat, at email@example.com or telephone number (02) 8633-7248.