Latest Press Release | DepEd raises ceiling of provident fund loans to help staff | February 23, 2022

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DepEd raises ceiling of provident fund loans to help staff
February 23, 2022 – The Department of Education (DepEd) raises the ceiling on Provident Fund (PF) loans to better assist teachers and staff 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," ani Kalihim ng Edukasyon Leonor Magtolis Briones.

In the proposed law providing Maximum Loanable Amount and appointing Approval Authorities under DepEd Provident Fund Program, the ceiling for PF Multi-Purpose Type Loan is P100,000, while on Additional Loan (for extreme cases) Type is P200,000, from the previous ceiling of P100,000. Therefore, a member of the Provident Fund can now borrow more than P300,000 from the Provident Fund.

Fund beneficiaries are teachers and staff from central, regional, division, and other field offices of the Department who are permanently and regularly employed and may be subject to official payroll deductions.

“By adjusting the ceiling of additional PF loan for extreme cases by Php 100,000.00, we have provided our DepEd Regional Provident Fund (PF) Chapters more flexibility to assist our field personnel on their financial needs,” saad ni Pangalawang Kalihim sa Pananalapi Annalyn Sevilla.

With the growing rise of both PF loans, the contractual interest rate is six percent per year. It can be paid from one to five years, depending on the capacity of the borrower, which is subject to the net take-home requirement set under the Authorized Deductions, General Provisions of the Annual General Appropriations Act.

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In addition, the applicants for the said loans per PF Chapter, in addition to DO 37, s. 2018, are the following:
1. For the Central Office Chapter, the Recommending Approval is from the PF National Board of Trustees (NBT) Secretariat, and the approval comes from the Second Finance Secretary.
2. For Regional Offices, the Recommending Approval will come from the Regional PF Board Secretariat's Tree, and the approval will come from Regional Director.

3. For the Schools Division Office, the Recommended Approval for Multi-Purpose Loan, will come from the Full Schools Division PF Board Secretariat, and the Approval will come from the Schools Division Superintendent (SDS). Meanwhile, for Additional loan, the Recommending Approval will come from SDS and the Regional PF Board Secretariat, and the approval will come from the Regional Director.

For more information regarding guidelines and PF loans, contact Employee Account Management Division, PF NBT Secretariat, and at co.provident@deped.gov.ph or by telephone number (02) 8633-7248.