LANDBANK Introduces Enhanced Salary Loan Terms for DepEd Personnel

A letter from a LANDBANK Branch Manager addressed to a Department of Education Schools Division Superintendent is circulating online, providing information about updated features of the LANDBANK Salary Loans for DepEd Personnel.

According to the letter dated July 15, 2026, the enhanced loan features became effective on the same date. The updated terms include a higher maximum loanable amount and a longer repayment period for qualified DepEd teaching and non-teaching personnel.

Updated Salary Loan Features

Based on the information stated in the circulated letter, the following loan terms are being offered:

Loan Feature	Updated Terms
Term of Loan	Minimum of 6 months Maximum of 7 years or 84 months
Loanable Amount	Minimum: ₱20,000.00 Maximum: ₱2,000,000.00
Age Requirement	Up to 62 years old at loan maturity
Interest Rate	7% per annum

Longer Repayment Period and Higher Loan Limit

The maximum repayment period of seven years or 84 months may allow qualified borrowers to distribute their payments over a longer period. This could result in a lower monthly amortization compared with a shorter repayment term, depending on the amount borrowed and the bank’s final computation.

The maximum loanable amount of ₱2 million may also provide qualified DepEd personnel with additional financing options for major personal expenses, emergencies, educational needs, home improvements, debt consolidation, or other legitimate financial requirements.

However, the amount that an employee may actually borrow will not necessarily be the maximum amount indicated in the letter. The approved loan amount may still depend on the borrower’s salary, age, existing deductions, credit evaluation, remaining years in government service, net take-home pay, and other applicable banking and payroll policies.

DepEd Personnel Advised to Verify the Offer

Although the circulated document appears to be a branch-level communication, DepEd teaching and non-teaching personnel are advised to verify the updated loan terms before submitting an application.

Applicants may confirm the details through the following offices:

• Their servicing LANDBANK branch;
• The concerned Schools Division Office;
• The payroll, accounting, or finance unit; and
• An authorized LANDBANK loan representative.

Employees should also ask for a complete loan computation showing the estimated monthly amortization, total interest, applicable charges, insurance costs, net proceeds, and total amount payable throughout the selected loan term.

Important Financial Reminder

A longer repayment term may make the monthly payment more manageable, but it may also increase the total interest paid over the entire duration of the loan. Borrowers should compare the cost of different repayment periods before choosing a loan term.

DepEd personnel are encouraged to borrow only an amount they can reasonably repay without affecting essential household expenses and other financial obligations. A loan should be evaluated based not only on the monthly amortization but also on the total amount that will be paid until maturity.

Disclaimer

This article is based on a copy of a LANDBANK branch communication circulating online. It is published for general information only and should not be interpreted as an official nationwide announcement, guaranteed loan offer, loan approval, or financial recommendation. Eligibility, documentary requirements, loanable amount, interest computation, charges, repayment terms, and availability may vary depending on the servicing LANDBANK branch and the applicable agreement with the concerned DepEd office. Interested personnel should verify all information directly with LANDBANK and their Schools Division Office before applying.