All about LandBank Teacher Salary Loan
Last updated: June 2, 2023
Written by: Joshua Morales | Reviewed by: Mark Anthony
- The partnership between LandBank and DepEd is timely, especially at a time when people are in need of money.
- Although the interest rate is higher than other banks, you can rest assured that the approval process is easier,
- It is a loan program specially designed for teachers.
Teachers who have a small salary can now breathe in relief as LandBank now offers a LandBank loan for teachers. Professionals in the academic industry can now borrow extra money should the need arise. Today, we will discuss all the things you need to know about how to apply salary loan in LandBank.
About LandBank Philippines
LandBank has been around for many years. It was founded in 1963, and it started as a bank whose role was to manage the Agricultural Land Reform Code of the country. The main purpose of the bank was to help in the lease and purchase of lands.
Today, LandBank is a major banking establishment in the Philippines, competing against many big banks like PNB, Banco de Oro, and Metrobank. It is the most popular rural bank where farmers can get loans for their agricultural needs.
How DepEd Helps for Filipino Teachers
The Department of Education, or DepEd, has a partnership with LandBank. They launched a financing scheme for teachers and all regular employees of DepEd, which they dubbed the Livelihood Loan Facility for the DepEd.
❗ In this program, teachers and employees of DepEd can borrow money and pay with low rates of interest. The loan has a fixed interest rate of 10.5% per year. People who qualify can borrow the equivalent of eight months of their gross pay.
However, rank-and-file employees cannot borrow more than ₱500,000. Those who hold a position can borrow up to ₱1,000,000.Apply now
How to Apply a Teacher Salary Loan in LandBank
To apply for a loan, you must go to the website of LandBank and look for the application form. Download that form and then click on the Apply for DepEd Livelihood Loan button. Print the form, sign it, and then give it to your employer.
There is a part on that document that a DepEd official has to sign. Once printer, go to the nearest Landbank office and submit the document, along with the requirements.
The best thing to do, really, is just going to a LandBank office. They have forms there, and you can ask a bank Personnel to give you one. Do not forget to bring all the requirements with you so you can submit them on the same day.
Who Can Get a LandBank Teachers Loan?
The people who qualify for this loan are employees of DepEd. Only those who work for the DepEd can qualify. Unlike other banks, LandBank put a segregation of loans between rank-and-file employees and officers.
Officers can loan up to a million pesos, but then employees below them can only loan half of that. The requirements are the same for both types of borrowers.
LandBank Teachers Salary Loan Table for 5 Years
|Installment Period||Gross Loan||Principal||Interest||Other Charges||NET PROCEEDS Cash Flows|
Quick Loan For Unemployed
LandBank Teachers Loan Requirements
The basic requirements for a Landbank salary loan for teachers are as follows:
• The loan applicant must be between 18 and 62 years of age
• The applicant must be a regular employee of the DepEd
• The applicant must have been teaching for at least a year
The applicant must submit his latest payslips. In addition, the teacher must not be on leave of absence without pay.
Here are some more things that LandBank requires:
• No pending administrative or criminal charges
• The applicant must not have other pending loans
• The applicant must not be due for retirement by the time the loan matures
• The net salary of the applicant must not be less than ₱5,000 per month
If you meet these conditions, you must prepare the following documents:
• Completely filled the application form
• A certified true copy of the latest payslip
• Certificate of employment
• Valid ID
The bank may also ask you for your statement of account if you have a bank account. On some occasions, they may also ask for a document called Outstanding Balance if you have a loan somewhere else.
How to get loans online without bank account
LandBank Teachers Loan Terms and Amounts
The term of the loan is 12 to 36 months, and the fixed interest rate is 10.5% per year. Below is a sample calculation.
• Loan amount is ₱500,000
• Interest at 10.5% is ₱52,500
• The total loaned amount is ₱552,500
If the term you took is 12 months, we simply have to divide the total loaned amount by 12, and the monthly amortization is ₱46,041.667.
Now, what if you loaned the same amount, but the term you took is 36 months or three years? In this case, please see the calculation below:
• The loan amount is ₱500,000
• Interest at 10.5% is ₱52,500 x 3 years = ₱157,500
• The total loaned amount is ₱657,500
The monthly amortization for three years is ₱18,263. While it may seem that the total interest is high, you have to consider that this has already factored in the inflation rate, and it is why you are still at an advantage.
Unfortunately, there is no Landbank loan calculator for this type of loan. Instead, what they have on their website is a housing loan calculator. By the way, the loan and its terms may be adjusted every six months.
Landbank loan table for teachers
|Loan Amount, PHP||Mountly Loan Amortization, PHP|
|12 month||24 month||36 month|
How to Pay the Teachers Loan
The payment of your loan is deductible from your salary. The bank will coordinate this with the Accounting Department of DepEd. They can also deduct this from a teacher’s benefits, not just the salary.
For this to happen, you will also have to submit your ATM details. Teachers of DepEd have ATMs from which they can withdraw their salaries. Once you supply this ATM to LandBank, they will make arrangements with the issuing bank of this ATM so they can debit it.
What if you do not pay the loan? Well, LandBank has the right to contact you and ask you to pay. Since this has no collateral, they cannot get your property. The thing is that when you apply for a loan and do not pay it, creditors will know and eventually, you will have a bad credit score. What this means is that you cannot apply for a loan anymore, even from other financial institutions.
How do I Pay with Dragonpay?
What are the Benefits of a Teachers Loan from LandBank?
First of all, it is easy to get approved. Since this loan is a partnership between LandBank and DepEd, you can rest assured that you will be approved for your loan.
The best way to get approved is to loan an amount that is not more than 30% of your net pay. For example, let us say that your salary per month is ₱30,000. If you loan ₱50,000 at a 10.5% annual interest rate, your total due is ₱55,520. If the term you selected is 12 months, your monthly amortization is ₱4,604, which is 15% of your monthly salary.
That amount is easier to approve than loaning ₱500,000. If you loaned half a million, your monthly amortization at a term of 36 months is ₱18,263, which is equivalent to 60.88% of your monthly salary. In this case, the bank is not likely to approve your loan.
Make sure you consult that Landbank salary loan table for teachers to know how much you are going to pay for the amount of money you borrowed in relation to the term you selected.
Below are some more benefits of this loan:
1. Auto Debit
You no longer need to stand in line to pay your debt. LandBank will automatically deduct your loan amortization from your ATM. As such, the money you see every payday already accounts for what you owe. This is better than loaning from other institutions, as you have to go to the bank once a month to pay your loan.
If you lost your ATM card, the bank that issued it would also take care of the processing of the payment, so you do not get delayed. The ATM is associated with an account number anyway. Just make sure you immediately notify the bank once you lose your ATM card.
2. Fixed Interest
Fixed interest on a loan is good because what you pay monthly is predictable. At the beginning of the term, you know exactly how much you owe every month.
If the interest is not fixed, the interest will change according to the financial atmosphere in the world. If the federal rates are high, you will also pay high-interest rates.
3. High Loan Amount
It is not easy to loan half a million pesos, let alone one million pesos. LandBank, however, is willing to take the risk. Because of this, you can now have money to spend if you need it. It is a good thing to bank on if you have an emergency situation.
With other banks, they may not even entertain your loan if you are a teacher, knowing that your salary is low. As such, teachers should be happy that Landbank is there to support them financially.Apply now
Multi-Purpose Loans in the Philippines
MarieIt's my first time. It took just about 5 minutes and I was approved in an instant. Very helpful.4
ErikDigido is very efficient. The approval is quick as long as you accomplish the requirement. I am totally satisfied, thank you Digido for the prompt assistance.5
ArnoldIt was a very good transaction, fast disbursement and no interest for first time loan. Thank you Digido!5
NoelFast approval and cash disbursement. They have considerations. They are very professional and without any harrassment in reminding payment unlike other loaning app. Recommendable site!👍4
JanroseVery considerate, they will give you enough time to settle or renew your loan with minimum interest.4
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Note: The information presented in the tables is subject to change and borrowers are advised to contact their chosen bank/ financial entity directly for the updated information