The Department of Education is reopening the accreditation of Private Lending Institutions (PLIs) that can offer more alternative credit windows with better terms and lower financial charges on loans availed by teachers and personnel of the Department.
Education Secretary Br. Armin A. Luistro FSC said there is a need to widen the field some more so that public school teachers and non-teaching personnel can choose which ones have the best offer. “This is part of our on-going reform to prevent our teachers from falling prey to loan sharks.”
Under DepEd’s Automatic Payroll Deduction System Clean Up program, PLIs that charge exorbitant fees and unreasonable loan terms have been deleted from the accreditation list. Applications for PLI accreditation may be submitted to the Office of the Undersecretary for Finance and Administration until March 31, 2013.
The grant of automatic payroll deduction for loans extended to public school teachers and employees through the issuance of a lending code is a privilege extended by DepEd and not a matter of right to be invoked by any outside party.
Interested PLIs may download the complete requirements and accreditation criteria by downloading DepEd Memorandum No. 228 series of 2011 at www.deped.gov.ph.