Many people need money to repay their college loans, start businesses, renovate houses, etc. There are a lot of financial institutions, banks, or government agencies that are ready to offer different loan programs for us. If you are a teacher, you may find something interesting here. In this article, we will discuss teachers loan and how you can find the best one for your needs.
As all of you know, teacher loans are common among many clients today. Many financial institutions and banks are offering these loans to their customers. Teachers who just graduated from college or moved to a big city may struggle financially. Because of this reason, teacher loans are the best solution for these teachers, especially to help them relieve their financial burdens. Here are several teacher loan programs that are available in the Philippines.
Sariling Sikap Loan Program
This exclusive loan scheme is dedicated to teachers in the Philippines. This loan is affiliated with the official Philippines Public School Teaching Association or PPSTA. With this loan, all teachers are offered loans that range from PHP 2,500 up to PHP 300,000 with an interest rate of 7.5%. The official service charge of this loan program is 0.5%.
Teachers need to apply for the loan with some required documents. All payments will be made in the form of a salary deduction every month. Members of PPSTA can get loans up to PHP 100,000 under the Instant Loan Program.
Teacher GSIS Loans
An example of a GSIS teacher loan for 2023 is the GSIS Financial Aid Loan, which provides up to 500,000 pesos to teachers to help them repay their outstanding loans.
The loan has an interest rate of 6% annually, calculated in advance and paid in monthly installments over six years.
DepEd Teacher Salary Loans
DepEd Teacher Salary Loans and DepEd Loans are Provident Fund Loans (PF) to provide financial support to teachers and non-teaching staff in need. However, the reasons for applying for a loan are somewhat strict; PF can only be used for hospitalization or medical expenses of the borrower, the death of a family member, and education loans.
PF multi-purpose loans are capped at 100,000 pesos, while additional loans are capped at 200,000 pesos. The contract interest rate is 6% per annum, and the loan can be repaid within 1 to 5 years.
Banks
Some banks will provide small loans to the teachers willing to cover their monthly expenses before receiving their salaries. The banks will ask for some documents, such as tax records, application forms, payslips, and other wealth documents. They will access your application.
a. Union Bank City Savings Loan
This is another popular loan that is suitable for teachers. This loan allows all teachers to get a loan ranging from PHP 20,000 to PHP 875,000. The loan will range from 1 – 3 years with a 6% interest rate. There is no per-termination fee, so you can pay off loans earlier than scheduled without paying expensive fees.
If you want to start your application, you can visit the nearest Union Bank to submit your application. A general requirement for being qualified for this loan is to be 21 to 65 years old. The minimum monthly income that you need to have is around PHP 15,000. You also need to provide payslips for the last 60 days and the certificate of appointment.
b. BDO Network Bank Salary Loan
You can look at this loan if you are looking for a good salary loan with an easy installment. The bank has a loan offer that can be up to PHP 10,000. The overall interest rate will be 1.25% per month. The maximum loan period you can take from this bank is 24 months. There is no hidden charge or fee when applying for this salary loan. The approval time will be no more than five banking days.
c. LandBank of the Philippines Loan Program
This is a loan project that is offered by the LandBank of the Philippines. This loan program is specially created for educators and teachers in the Philippines. When taking this loan, you can borrow up to 8 months of your monthly salary. The interest will be fixed at around 10.5% per year. The applicants must be 18 to 62 years old and affiliated with the Department of education for over a year. The applicants must be LBP account holders. They also need to have at least PHP 3,000 monthly salary.
d. Producers Bank Salary Loan
Producers Bank also offers this salary loan to teachers who need to take a loan. Applicants can apply for any loan from PHP 1,000 to PHP 500,000. The interest rate will be 7.5% for a year, 9% for 2 years, and also 9.66% for a total of 3 years. The loan approval time will be shorter than 3 working days.
Upfinance
This information site will provide a lot of information about loan programs. This site has interesting data, such as surveys banks, information, and other loan options from many different institutions. Upfinance also has some offers for teacher loans. They offer an advanced salary teacher loan. This loan is offered to teachers who have delayed monthly salaries. You can compare several loan options to find the best one for your needs.
Finance Companies
You can look into financial companies like state-licensed lender Digido if you need an urgent loan.
Digital doesn’t offer loans exclusively for teachers. But they have loans that allow anyone with a regular paycheck, including teachers, to get the financial help they need with a minimum of formality.
The fully automated banking platform allows the customer to access services 24/7. You can get money into your bank account from the comfort of your home. Digido offers unsecured personal loans of up to PHP 25,000. The entire process does not take more than a couple of hours. The entire process does not take more than a couple of hours.
Conclusion
Many other loan options are available for teachers. You can compare and look at all available options to choose the right one for your needs. You can also consider the total interest rate, monthly payment, total loan period, etc. when choosing the best loan for your needs.