ADDITIONAL FINANCING. Attending the signing of the Loan Agreement between Sun Savings Bank and Landbank of the Philippines (Landbank) at Casino Español de Cebu in Cebu City on Friday, May 27, 2022 are (seated from left) Augusto Gonzalez, Executive Vice President and Treasurer from Sun Savings Bank; Francisco Dizon, President and Chief Executive Officer, Sun Savings Bank; Elsie Fe Tagupa, Senior Vice President and Head of Visayas Credit Group, Landbank; Allan Bisnar, Vice President and Head, Cebu South Lending Center, Landbank. /EARL PADRONIA
SUN Savings Bank has signed an additional Pta 100 million loan facility with the state-owned Land Bank of the Philippines (Landbank) to help public school teachers in Cebu province rebuild and repair their homes destroyed by Typhoon Odette and the to fund their children’s college education.
The Loan Signing Ceremony between Sun Savings Bank and Landbank was held on Friday, May 27, 2022 at Casino Español de Cebu in Cebu City.
Present at the event were Francisco Dizon, Sun Savings President and Chief Executive Officer, Augusto Gonzalez, Sun Savings Executive Vice President and Treasurer, Elsie Fe Tagupa, Senior Vice President and Head of Landbank’s Visayas Credit Group, and Allan, Vice President and Head of Cebu South Lending Centre, Bisnar present.
“We are borrowing money from the Land Bank to continue our efforts to help teachers rebuild their homes that were damaged by (Typhoon) Odette,” Dizon said.
“It will also be the start of another school year and a large number of teachers have children going to college… So we anticipate that teachers will again need funding for their children’s college tuition.”
Dizon urged public school teachers to take out new, additional loans, especially as the Department of Education (DepEd) extended loan repayment terms for teachers to up to five years from the previous three-year period.
He added that teachers can now borrow more funds without negatively impacting their income after DepEd approved the extended five-year teacher loan repayment schedule.
A teacher can apply for a new, additional loan of up to P300,000 and still take home a net income of P5,000, as mandated by the DepEd.
Payment of borrowed money is deducted by DepEd from teachers’ payslips via the department’s Automated Payroll System (APDS), of which Sun Savings Bank has been one of the accredited banks for over 10 years.
“We want to help teachers with their urgent funding needs now that DepEd has allowed us to issue loans for a longer term of five years, where we were previously limited to three years,” Dizon said.
Last March, Sun Savings began offering the larger loan amount and five-year term, making it one of the frontrunners in serving this particular market segment.
Augusto Gonzalez, Treasurer of Sun Savings Bank, said the bank will repay its loan to the land bank in quarterly installments over a period of up to five years.
Gonzalez added that with the additional loan of 100 million pesetas granted by the land bank, the total amount of their credit facility for Sun Savings has now increased to 300 million pesetas. This is a recognition of Sun Savings Bank’s strong financial position and credit standing.
As of March 1, Sun Savings has been able to extend loans to 3,800 teacher borrowers in Cebu Province under the new five-year term. With this development, the bank has recently become the third largest lender among public school teacher banks in Cebu. (EHP)