Government Entity Payroll Plan

DEFINITION:

    1. Payroll Service Plan Loan (PSPL) – refers to the Salary Loan granted to Qualified Employees of Accredited Government Entity.

 

    1. ACCREDITED GOVERNMENT ENTITY (AGE) – refers to the Employer of the Borrower that passed the criteria, evaluation and accreditation process set by the bank and shall be referred to in these guidelines as “Government Entity”.(GE)

 

      1. National Government (NG) – refers to Government Agencies such as Departments, Bureaus, Offices and instrumentalities, but excluding government-owned and government-controlled commercial corporations.
      2. Local Government Unit (LGU) – refers to a Government Unit below the level of National Government such as Provinces, Cities, Municipalities and any other political subdivisions created by law enacted by Congress and to Barangays created by ordinance passed by the SangguniangPanlalawigan or the SangguniangPanlunsod that are located within its territorial jurisdiction, subject to such limitations and requirements prescribed in R.A. No. 7160 (Local Government Code of 1991).
      3. Other Government Agency (OGA) – refers to Government Unit or Agency other than LGU and DepEd

 

  1. QUALIFIED EMPLOYEES/ELIGIBLE BORROWERS – are employees of the Accredited Government Entities that passed the evaluation and qualification process.
TYPES OF PSPL (Click to Reveal) (Click to Reveal)
    1. PSPL-DepEd – refers to Salary Loan granted to Teachers/Employees of Public Schools as follows:
      1. Public Schools with Centralized Payroll System
        These refer to Public Schools wherein the payroll of the teachers are prepared and processed at the DepEd Central Office in Manila.
      2. Public Schools with Regionalized Payroll System
        These refer to Public Schools wherein the payroll of the teachers are prepared and processed at the DepEd Regional Office.
      3. Stand-Alone/Chartered Public Schools
        These refer to Public Schools which have their own charters and not dependent on DepEd Regional Offices for the funding of its payroll and other administration and maintenance requirements.

 

    1. PSPL – PUBLIC (Non-DepEd)/(PSND) – refers to Salary Loan granted to Employees of Local Government Units (LGU) and Other Government Agencies (OGA) other than Public Schools.

Accreditation of the employer/company is necessary.
BASIC REQUIREMENTS

  1. The Unit/Entity shall be an Accredited Government Entity (AGE).
  2. An Agreement between the Bank and the AGE which, among other conditions, stipulates that the AGE undertakes to deduct from the payroll of its employees the amount equivalent to the monthly amortization and remit to the Bank whatever amount the employees owe under its Salary Loan Program.
TYPES OF AGREEMENT (Click to Reveal) (Click to Reveal)
    1. WITH SURETYSHIP

      2. This refers to a Salary Loan Program in which the Accredited Government Entity (AGE) acts as a Surety, and is jointly and severally liable for the loans granted by the Bank to the Qualified Employees of the AGE.

 

    The AGE shall execute the following agreements:

    1. Salary Loan Surety Agreement (SLSA); and
      This is an Agreement that requires among other conditions that the repayment of all obligations of the employees shall be secured by the joint and several liabilities of the Unit/Entity referred to as the “Sureties”.
    2. Salary Loan Memorandum of Agreement (SLMOA)
      This is an Agreement that requires among other conditions that before the employees of the Government Entity can avail of the Salary Loan, the Government Entity shall undertake to deduct from the salaries of the employees and remit the same to the Bank whatever amount the employees owe the Bank under the Salary Loan Program.
  2. WITHOUT SURETYSHIP

    3. This refers to the salary loan in which the AGE does not act as Surety for loans granted by the Banks to the Qualified Employees of the AGE. The AGE shall execute any of the following agreements:

    1. Salary Loan Automatic Debit Arrangement (SLADA); or
      This is an Agreement that requires, among other conditions that before the employees of the AGE can avail of the Salary Loan Program, the AGE shall permit such employees to authorize the Bank to regularly debit from their payroll accounts with the Bank the amortizations on their loans under the Salary Loan Program.
    2. Salary Loan Memorandum of Agreement (SLMOA) (Without Suretyship)
      This is an Agreement that requires among other conditions that before the employees of the Government Entity can avail of the Salary Loan, the Government Entity shall undertake to deduct from the salaries of the employees and remit the same to the Bank whatever amount the employees owe the Bank under the Salary Loan Program.

The Payroll Service Plan Loan (PSPL) is a Salary Loan Program WithoutSuretyship. The Accredited Government Entities (AGE) does not act as Sureties for loans granted by the Banks to its Qualified Employees.

Features:

ELIGIBLE BORROWERS Salary Loans shall be granted only to the following Qualified Employees of the Accredited Government Entity (AGE):

EMPLOYEE QUALIFICATIONS
Criteria DepEd/PSPL LGU / OGA-PSND
1. Borrowers All Dep. Ed. Teaching & non- teaching employees -PSPL
All Govt. Employees outside of Dep. Ed-PSND
2. Maximum Loan Amount
-New Borrower
– Repeat Borrower		 P100,000.00 to P 200,000.00
P500,000.00
3.Minimum Loan Amount
-New Borrower		 P10,000.00
4. Interest Rates (AOR)
-1 year / 12 months
-2 years / 24 months
-3 years / 36 months		 Based on Prevailing Dep. Ed Rate
7.5% p.a.
9.00% p.a.
9.00% p.a.		 Subject to change based on prevailing interest rate
12.00% to 18.00% p.a.
12.00% to 18.00% p.a.
12.00% to 18.00% p.a.
5.Loan Tenor / Term 12,24,& 36 months 12,24, 7 36 months. Elected Officials (not to exceed term of office)
6.Service Charges 6.00% of Amount Financed 5.00% to 6.00% of Amount Financed (excluding MRI & Notarial Fee)
7.Processing Fee Not applicable 1.50% of Amount Financed
8. Mode of Payment Salary deduction
9. Insurance /MRI Based on the MRI Table provided by Loans Accounting Department
10. Age At least 21 years old at the time of loan availment and not more than 59 years old upon loan maturity. For elective government officials, the term of the loan shall not to exceed their term of office.
11. Employment Status Employee of Accredited Gov’t. Entity with permanent status Exemptions for borrowers over 59 years old are the following:
i. Borrower is a person of influence in the unit or office they are employed, such as:
-Elected Officials
-Heads of Office
-Disbursing Officer, School Principal and Accountant
-Payroll Encoder
-Payroll Supervisor
-Contact Persons
ii. Maximum loan exposure does not exceed PhP 200,000.00
12. Residence Residing/Office is within the USB/UCPB service area
13. NTHP/Credit Ratio Based on the allowed NTHP of GAA for the year, or P4,000.00, whichever is higher (USB after deductions)
14. Credit Background 1. No derogatory records with any Gov’t entity
2. No past due account, accounts under IUL or WOA in USB/UCPB or other financial institution
3.Credit Rating: Excellent, outstanding or satisfactory
15. Co-Maker Required=NTHP can be lower than the principal borrower, provided they can still service the loan amortization of the principal borrower.

Customer’s Benefits:

  1. Convenience – loans are processed at the earliest possible time
  2. Worry-Free – Since no collateral is required, clients can be provided with their basic necessities and indulge in luxuries without any hassle
  3. Affordability – interest rates are low and payment terms are affordable and easy on the budget
  4. Efficient and Personalized Service – efficient staff will promptly answer question and offer assistance with a personalized touch

DOCUMENTATION REQUIREMENTS

Criteria PSPL PSND
1.Borrowers 1. Latest Dep ID & PRC Card
2. Latest Appointment Paper of GURO Certificate
3. Latest ITR (Form 2316 or Alpha list duly received by BIR)
4. Original latest payslips
Stand Alone=1 month
Region/APDS=3 months
5.Authority to Deduct
6. Latest 1×1 or 2×2 pics.(2 copies)		 1. Latest Govt. or PRC Card
2. Certificate of Employment & Service Record
3. Latest ITR (Form 2316 or Alpha list duly received by BIR)
4. Original latest payslips (1 month)
5. Authority to Deduct of co-maker and maker
6. Certificate of no pending criminal or administrative case
7. Latest 1×1 or 2×2 pics.(2 copies)
2. Entity/Company If Region Paid – Not required
If Stand Alone:
1. Approved Plantilla
2. Latest payroll list
3. List of authorized entity signatories
4. Credit History		 1. MOA (notarized)
2. City or Mun. Council Resolution
3. Latest Approved Plantilla
4. Latest Payroll list
5. List of Authorized entity signatories
6. Latest Financial Statement
7. Credit History
3. Approval medium for school/Unit/ Borrower Accreditation Stand Alone School-CRAM Credit Recommendation & Approval Memorandum) Region Paid- N/A CRAM: Credit Recommendation & Approval Memorandum