All about LandBank Teacher Salary Loan

Last updated: August 28, 2024

Written by: Digido Financial Writers Team | Reviewed by: Anna Kireeva

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 for a 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 also the most popular bank where farmers can get loans for their agricultural needs.

Livelihood Loan Facility 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.

The Livelihood Loan Facility for Department of Education (DepEd) employees is a financial assistance program offered by the Land Bank of the Philippines, aimed at helping DepEd employees with their financial needs, including for personal and livelihood purposes. This program provides accessible and low-interest loans to teachers and other DepEd employees to improve their financial stability and support their various needs.

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 higher position can borrow up to ₱1,000,000.

Key Features of the Livelihood Loan Facility:

✅ Loan Amount:
Rank-and-file employees (e.g., public school teachers) can borrow up to ₱500,000.
DepEd officials or those holding higher positions can borrow up to ₱1,000,000​.

✅ Interest Rate:
The fixed interest rate for these loans is 10.5% per annum. The interest is payable in arrears and is based on a diminishing balance formula​.

✅ Loan Term:
The repayment period ranges from 12 to 36 months, and the loan is renewable every six months if necessary​.

✅ Eligibility:
Applicants must be regular/permanent DepEd employees who have been in service for at least one year.
They should not have pending criminal or administrative cases, must not be due for retirement during the loan term, and must have a net take-home pay of at least ₱5,000 after deductions​.

✅ Requirements:
Applicants need to submit their latest payslips, a certificate of employment, a valid ID, and other necessary documents such as a statement of account if they have existing loans.

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How to Apply for 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 printed, go to the nearest Landbank office and submit the document, along with the requirements.

The best thing to do, really, is just go 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
0	100,000.00			6,000.00	94,000.00
1		1,303.02	805.00		(2,108.02)
2		1,313.51	794.51		(2,108.02)
3		1,324.08	783.94		(2,108.02)
4		1,334.74	773.28		(2,108.02)
5		1,345.49	762.53		(2,108.02)
6		1,356.32	751.70		(2,108.02)
7		1,367.24	740.78		(2,108.02)
8		1,378.24	729.78		(2,108.02)
9		1,389.34	717.68		(2,108.02)
10		1,400.52	707.50		(2,108.02)
11		1,411.80	696.22		(2,108.02)
12		1,423.16	684.86		(2,108.02)
13		1,434.62	673.40		(2,108.02)
14		1,446.17	664.85		(2,108.02)
15		1,457.81	650.21		(2,108.02)
16		1,469.54	638.48		(2,108.02)
17		1,481.37	626.65		(2,108.02)
18		1,493.30	614.72		(2,108.02)
19		1,505.32	602.70		(2,108.02)
20		1,517.44	590.58		(2,108.02)
21		1,529.65	578.37		(2,108.02)
22		1,541.97	566.05		(2,108.02)
23		1,554.38	553.64		(2,108.02)
24		1,566.89	541.13		(2,108.02)
25		1,579.50	528.52		(2,108.02)
26		1,592.22	515.80		(2,108.02)
27		1,605.04	502.98		(2,108.02)
28		1,617.96	490.06		(2,108.02)
29		1,630.98	477.04		(2,108.02)
30		1,644.11	463.91		(2,108.02)
31		1,657.35	450.67		(2,108.02)
32		1,670.69	437.33		(2,108.02)
33		1,684.14	423.88		(2,108.02)
34		1,697.69	410.33		(2,108.02)
35		1,711.36	396.66		(2,108.02)
36		1,725.14	382.88		(2,108.02)
37		1,793.02	369.00		(2,108.02)
38		1,753.02	355.00		(2,108.02)
39		1,767.14	340.88		(2,108.02)
40		1,781.36	326.66		(2,108.02)
41		1,795.70	312.32		(2,108.02)
42		1,810.16	297.86		(2,108.02)
43		1,824.73	283.29		(2,108.02)
44		1,839.42	268.60		(2,108.02)
45		1,854.22	253.80		(2,108.02)
46		1,869.15	238.87		(2,108.02)
47		1,884.20	223.82		(2,108.02)
48		1,899.37	208.65		(2,108.02)
49		1,914.66	193.36		(2,108.02)
50		1,930.07	177.95		(2,108.02)
51		1,945.61	162.41		(2,108.02)
52		1,961.37	146.75		(2,108.02)
53		1,977.06	130.96		(2,108.02)
54		1,992.97	115.05		(2,108.02)
55		2,009.01	99.01		(2,108.02)
56		2,025.19	82.83		(2,108.02)
57		2,014.19	66.53		(2,108.02)
58		2,057.92	50.10		(2,108.02)
59		2,074.49	33.53		(2,108.02)
60		2,091.19	16.83		(2,108.02)
Total		100,000.00	26,480.68	6,000.00

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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 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 an Outstanding Balance Certificate if you have a loan somewhere else.

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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 borrowed 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	Monthly Loan Amortization, PHP
	12 months	24 months	36 months
5000	433,79	225,00	155,53
10000	867,57	450,00	311,06
20000	1735,15	899,99	622,12
30000	2602,72	1349,99	933,19
40000	3470,30	1799,98	1244,25
50000	4337,87	2249,98	1555,31
60000	5205,45	2699,98	1866,37
70000	6073,02	3149,97	2177,44
80000	6940,59	3599,97	2488,50
90000	7808,17	4049,96	2799,56
100000	8675,74	4499,96	3110,62
150000	13013,61	6749,94	4665,93
200000	17351,48	8999,92	6221,24
250000	21689,35	11249,90	7776,55
300000	26027,23	13499,88	9331,87
350000	30365,10	15749,86	10887,18
400000	34702,97	17999,84	12442,49
450000	39040,84	20249,82	13997,80
500000	43378,71	22499,80	15553,11
550000	47716,58	24749,78	17108,42
600000	52054,45	26999,76	18663,73
650000	56392,32	29249,74	20219,04
700000	60730,19	31499,71	21774,35
750000	65068,06	33749,69	23329,66
800000	69405,93	35999,67	24884,97
850000	73743,80	38249,65	26440,29
900000	78081,68	40499,63	27995,60
950000	82419,55	42749,61	29550,91
1000000	86757,42	44999,59	31106,22

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 information 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.

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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 apply for 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 borrowing ₱500,000. If you borrowed 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 the 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 loan from other institutions, as you have to go to the bank once a month to pay your loan.

If you lose your ATM card, the bank that issued it will 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.

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