Now a day, we see every single thing has a monetary value. In raising and educating a child, medical expenses, meeting our basic needs and most especially paying for unexpected emergency expenses. Even those who already have stable jobs do not have enough budgets to pay for their daily needs. We seek for another source of income and one common means is to apply for loan.

In line with the Department of Education goal to provide officials and employees with benefits and loans for emergency needs, for their education and of their children, for their hospitalization and that of their immediate dependents and other similar purposes as determined by the Board of Trustees (DECS Order No. 50, s. 2001), the Department of Education established Provident Fund under DepEd Order 97, s. 1992.

The Division of Malaybalay City implemented the said program last February 2012 covering the whole employees of the division including implementing units. DepEd Order 36, s. 2007 states the Amendments and Addendum to DepED Order No. 12, s. 2004 (Revised Implementing Guidelines for the DepED Provident Fund), the guidelines and requirements in securing the said loan must be strictly followed to ensure equal opportunity from teaching and non-teaching personnel to be benefited from the said fund/loan.

The loan shall be used for emergency needs of the teacher/employee or immediate and other members of his/her family up to the fourth degree of civil consanguinity or affinity such as:

• Hospitalization and/or medical expenses resulting from an accident / illness;
• Death ;
• Educational loans;
• Other emergency expenses to be specified by the teacher / employee-applicant.

To apply for the said loan program, the interested borrower must submit duly accomplished loan application /promissory note and authorization in three (3) copies indicating the specific purpose for which the loan will be utilized, authenticated photocopy from the original latest pay slips indicating monthly salary deduction. The maker and co-maker must have a net take home pay of at least 3,500.00 pesos without any undeducted obligations and to be submitted to the Division Office for verification of loan approval.

The Provident Fund loan charges an interest rate of six percent (6%) per annum, add-on and straight computation. Repayment period shall be at the option of the borrower, subject to his/her capacity to pay and computation of his/her net take home pay which shall not be reduced to less than Three Thousand Five Hundred Pesos (P3,500.00) after all deductions including the Provident Fund loan amortization. The borrower may opt for a repayment schedule of twelve (12) months, one (1) year up to a maximum period of sixty (60) months, five (5) years equal monthly installments. In all cases, repayment of loans shall be through automatic deduction from the borrower’s salary by agency payroll.

Generally, this loan program believed that employees who are in financial need will provide them help in line with its road map to ensure effective learning to happen.

ARCHILLE B. CONOL

Administrative Assistant-III