Philippine Business Bank

Makaguro Loan
WHAT IS MAKAGURO LOAN?
* Is a multipurpose loan facility being extended to eligible and permanent teaching and non-teaching
personnel of DepEd via Automatic Payroll Deduction System (APDS). This is covered by a Memorandum
of Agreement with DepEd.

TYPEOF DEPED SCHOOLS

Regional Payroll Service Unit Base - Schools under the regional payroll system of DepEd. Billing of
loan for deduction and collection of checks are done in the Regional office of DepEd .
Autonomous/ Charter Schools – Schools that receives government funding but operate
independently. These schools have their own payroll unit . Billing of loan for deduction and collection of
check for payment is performed by the school.
ELIGIBILITY CRITERIA ON THE INDIVIDUAL BORROWER
Permanent regular employee with acceptable DepEd employment records at least with six (6)
months tenure in DepEd.
Holds Permanent Appointment letter.
With Issued employee number.
Must not be more than 65 years old or retirement age policy upon maturity of loan or whichever
comes first.
Net Take Home pay (NTHP) based on submitted payslip and confirmation with DepEd should not
be P5,500.00 and below.

PRODUCT FEATURES:
Loan Amount
Minimum pf Php10,000 and maximum of Php500,00: provided further that the Net Take Home Pay
(NTHP) should not fall below Php5,500.00
Loan Term
Twelve (12) Months, Twenty –four (24) months, Thirty-six (36) Months, Forty-eight (48) months,
Sixty (60) months.
Fees
5.25% deducted upfront from the principal amount of loan.
INTEREST RATE 7.50%
TERMS IN MONTH INTEREST RATE NOMINAL INTEREST RATE

60 mos 7.50% 4.04555%

48 mos 7.50% 4.01475%

36 mos 7.50% 3.994%

24 mos 7.50% 4.000%

12 mos 7.50% 4.109%

REQUIREMENTS FOR APPLYING FOR MAKAGURO LOAN

TEACHERS/ NON-TEACHING EMPLOYEES

●
Fully accomplished application form
●
Photocopy of 2 valid ids with 3 specimen signatures which include
id and PRC id or GSIS id.
●
Original and photocopy of permanent appointment letter
●
Original and Latest proof of billing
●
GSIS loan index
●
Original copy of 3 consecutive months payslip
●
2X2 Id picture Teachers
SAMPLE MONTHLY AMORTIZATION
LOAN AMOUNT LOAN 1 year 2 years 3 years 3 years 3 years
4.109% P.A 4.000% P.A 3.994% P.A 4.01475% P.A 4.04555% P.A
PROCEEDS

Mo. Payment Mo. Payment Mo. Payment Mo. Payment Mo. Payment

10,000 9,475 867.58 450.00 311.07 241.79 200.38

20,000 18,950 1,735.15 900.00 622.13 483.58 400.76

30,000 28,425 2,602.73 1,349.99 933.19 725.57 601.14
40,000 37,900 3,470.30 1,799.99 1,244.25 967.16 801.52
50,000 47,375 4,337.88 2,249.98 1,555.32 1,208.95 1,001.90

60,000 56,850 5,205.45 2,699.98 1,866.38 1,450.74 1,202.28

70,000 66,325 6,073.02 3,149.98 2,177.44 1,692.53 1,402.66

80,000 75,800 6,940.60 3,599.97 2,488.50 1,934.32 1,603.04

90,000 85,275 7,808.17 4,049.97 2,799.56 2,176.11 1,803.42
100,000 94,750 8,675.75 4,499.96 3,110.63 2,417.90 2,003.80
How to compute for the monthly amortization?
Monthly Amort =Principal x (1+Rate)/Term

100,000.00x (1+04.109)/12

100,000.00x1.04109/12

*8,675.75

*using nominal rate per annum

 MAKAGURO LOANS STANDARD PROCESS FLOW
SOURCES

Sales Officers
PBB Branches
Walk-in Applicants

Makaguro Booking and

Loans Credit BORROWER VERIFIER Loan Release
Unit

*Pre-screens loan *Checking and verification *Forward the confirmation e-mail *Determine if the stamped *Completion of
application of loan requirements. to verifier for approval.
monthly amortization can requirements
*Review loan docs * Approval of loanable be accommodated in the *Secures Documents for
*Conducts KYC/Interview amount APDS. And Email signature (PN, Atdeduct &
*Preparation of CRAM *Credit Head approval assessment to the lender CRAM)
*Recommendation approval *Email the scan of and borrower *Turn around time 2 to 3
of Unit head. stamped payslip for days maximum of 7days
confirmation to borrower
 MAKAGURO LOANS -BUY OUT PROCEDURES
SOURCES

Sales Officers
PBB Branches
Walk-in Applicants

Regular
Credit OPERATION BORROWER Standard
Makaguro
Loans Unit Process.

*Secures loan Docs

*Checking and *Preparation of signing of PN / ATdeduct.
*Pre-screens loan
verification of complete check. * Remitting payment to
application and SOA from
original loan PLI
the other PLI for loanable
requirements. * Submit OR and cert of
amount.
*Docs in order full payment to proceed
* Completion of original
* Approval of loanable on regular process.
requirements
amount.
*Conducts KYC/Interview
*Credit head approval
*Preparation of CRAM
*Recommendation
approval of Unit head.
MAKAGURO LOAN
FREQUENTY ASKED QUESTIONS (FAQs)

Q: What is PBB’s Makaguro loan?

A: It is a loan facility being extended to eligible and permanent teaching and non-teaching personnel of DepEd.
(Note: This facility is only available to some identified PBB branches/provinces see list below)

I PANGASINAN
III BULACAN, PAMPANGA, TARLAC, BATAAN AND ZAMBALES
IV-A LAGUNA, RIZAL, BATANGAS, CAVITE AND QUEZON
V ALBAY
VI ILOILO
CAR BENGUET (BAGUIO)
NCR METRO MANILA
BACOLOD
GENERAL SANTOS
DAVAO
PALAWAN

Q. What is the mode of payment of the loan?

A: Payment is via Automatic Payroll Deduction System (APDS) of DepEd.

Q: What is the purpose of the loan?

A: Multi-purpose such as tuition fee payment, purchase of furniture & appliances, car repairs and maintenance, home
Q: How much is the loanable amount? .

A: Minimum of P10,000.00 and maximum of P500,000.00 provided that the net take home pay shall not be
lower than Php5,000.00 relative to the issuance of Republic Act No. 11260 or the General Appropriation Act
(GAA)for Fiscal Year (FY) 2019.

Q: What are the upfront charges to be collected?

A: 5.25% one-time charge which is being deducted upfront from the loan proceed.
This includes MRI, Processing & Handling Fee, Notarial and Doc. Stamps which is broken down as follows:
MRI 1.50%
Notarial/Doc. Stamps 0.75%
Service Fee 2.50%
Miscellaneous Charges 0.50%
Total 5.25%

Credit Redemption Insurance (CRI) in case of Borrower’s death

Documentary Stamps Tax (DST)
Notarial fee
Q: What is the penalty rate?

A: 3% per month based on unpaid monthly amortization.

Q: What is the policy on renewal / re-availment of salary loans?

A: We can offer renewal of loan as long that he /she has no pending undeducted of
Loans from other PLI’s and treated as new loan.

Q: What is the mode of repayment?

A: Automatic payroll deduction from teacher’s payroll account to be remitted by DepEd.

Q: Does the bank collect pre-payment penalty in case of advance payment?

A: In case of advance payment, the Lender shall charge and collect interest only up to the advance payment date.
Interest for the remaining life of the loan may not be levied nor collected from the borrower in accordance with the
DepEd Memorandum of Agreement.

Q: What is Buy-out ?

A: Take out of loans from other PLI’s (Private lending Institutions)

Thank You!
MAKAGURO LOAN UNIT -CONTACT PERSON

SALES : Raph Kennedy C. Sotto Jelyn E. Ga

Makaguro Loan Unit Head Marketing Assistant
0912-4209546 0956-9538200
sotto_rkc@pbb.com.ph 0933-8595268
raphkennedysotto@yahoo.com ga_je@pbb.com.ph
jhellynghau@yahoo.com

Rosel Sarmiento Mark Anthony Mallari

sarmiento_rb@pbb.com.ph Markmallari.isb@gmail.com
0915-7204111
8374-1513

IN-HOUSE COLLECTION
Evangeline Labaclado
labaclado_eb@pbb.com.ph
Jennilyn M. Santiago
Santiago_jm@pbb.com.ph
0910-2305360