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2019 DepEd Guidelines on Evaluation of Provident Fund Loan Applications




Pursuant to DepEd Order No. 12, s. 2004, DepEd Order No. 20, s. 2012, DepEd Order No. 52, s. 2017 and DepEd Order No. 037, s. 2018, enclosed is Regional Memorandum No. NCR-45. S. 2019, from Dr. Wilfredo E. Cabral, Officer In-Charge, Office of the Regional Director, DepEd-NCR, dated March 4, 2019, relative to the “Guidelines On Evaluation Of Provident Fund Loan Applications”, which is self-explanatory, for the information and guidance of all concerned.

Attention is invited to item nos. 1 to 8 of the said Memorandum.

Guidelines on Evaluation of Provident Fund Loan Applications

This is issued pursuant to DepEd Order No. 12, s. 2004, DepEd Order No. 20, s. 2012, DepEd Order No. 52, s. 2017 and DepEd Order No. 037, s. 2018, to serve as guide in the evaluation and processing of applications for Provident Fund Loan at the Divisions.




Per DepEd Order No. 037, s. 2018 amending provisions of DepEd Order No. 12, s. 2004, there are two (2) types of Provident Fund loans that may be applied for, to wit:

Type of Provident LoanPurposeRequirementsMaximum Amount
Multi-Purpose LoanEducational, medical, or emergency needs of the teacher/employee or the immediate and other members of the family; major or minor house repairs/improvements; payment of loans from other institutions (PLIs) and/or government financial institutions (GFIs); livelihood, and for other legal purpose1) Accomplished Loan Application Form (LAF) using the latest revised form

2) Latest pay slip/payroll indicating the monthly salary deductions

3) Authorization to Deduct

4) Photocopy of DepEdID

5) Co-maker with the following qualifications:

a. With permanent status of employment

b. Has been in the service with the Department for at least one (1) year, inclusive of services rendered as COS within the last five years, if any;

c. Has a monthly basic salary of greater than or equal to that of the borrower’s salary;

d. Not a comaker for at least three (3) PF loans with outstanding balances.

Additional Documents for Additional Loan:

1) Letter request

2) Hospitalization/ Medical Expenses

3) Medical Abstract/ Certificate/ Prescription/Diagnosis

4) Barangay/LGU certificate/resolution declaring the borrower’s place under State of Calamity
Up to P100,000
Additional LoanFor extreme emergency cases only such as:

a. Payment of hospital bills.of the employee borrower’s or member of his/her family within the 3rd civil degree of consanguinity or affinity; or

b. Death of a member of the employee borrower’s family within the third civil degree of consanguinity/affinity; or

c. Borrower is a direct victim of a natural or man-made calamity, such as typhoons, fire, robber/, armed conflict, and others.
Up to P100,000 on top of the Multipurpose loan (DepEd Order No. 20, s. 2012)

Per Regional Board of Trustees Resolution No. 001, s. 2019, the approval of Multipurpose Loan is delegated to the Division Superintendent, subject to evaluation by the Division Secretariat whose members are designated in Regional Memorandum No. 26, s. 2019 dated February 4, 2019 as follows:




  • Administrative Officer (Administrative Section)
  • Accountant
  • Legal Officer/Attorney III

As stated in par no. 1 of DepEd Order No. 037, s. 2018, applications for Additional Loan at the Regional and Schools Division Provident Fund Chapters shall be approved by the PF Regional Board of Trustees. However, the Division Secretariat. For this purpose, the School Division Superintendent shall serve as head of the Secretariat per Regional Memorandum No. 26, s. 2019, who shall recommend approval in the prescribed Form. The Division Secretariat shall evaluate the application if it falls under Additional Loan and recommend for approval of the Regional Board. If the purpose of the Additional Loan does not meet the conditions, the Division Secretariat shall immediately disapprove the loan request and notify the concerned teacher/employee-borrower.

All Provident Fund loan applications in the Division shall evaluated by the Division Secretariat and accomplish the Revised Form accordingly. As to Additional Loan application, the head of the Division Secretariat shall recommend for approval to the Chairperson of the Regional Provident Fund Board.

The Division render monthly/quarterly reports to the Regional Board on the status of operations and financial condition of the Fund.




All applications shall be subject to the capacity to pay of the employee borrower and the prescribed net take home pay.

The interest rate for Provident Fund loan is 6% per annum, with no grace period on the start of payment of loan, computed using the diminishing/declining balance method.

Newly hired teachers are allowed to avail of Provident Fund loan equivalent to his/her one month basic salary, payable in 6 months, on the same rate of interest, diminishing balance method (par. 2 of DepEd Order No. 037, s. 2018).

Renewal of Provident Fund loan may be allowed provided that:

a) 30% of the existing loan has been paid;

b) there are no pending applications for new loans, and

c) the balance of the principal amount shall be deducted from the new loan.

For information and compliance.

DepEd NCR Regional Memorandum No. 45, s. 2019

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