CHINA BANK Savings, Inc. (CBS) and Manulife China Bank Life Assurance Corp. (MCBL) are set to provide automatic payroll deduction salary loans that come with free life insurance.
In a statement on Wednesday, CBS and MCBL said they have partnered with the Department of Education (DepEd) to offer Easi-Automatic Payroll Deduction Salary Loans (Easi-APDS Loan), allowing the employees of the agency to avail of loans that come with free life insurance.
Public school teachers and other staff from DepEd can borrow a minimum of P5,000 and maximum of P1 million through the Easi-APDS Loan.
The loans are payable in one, two or three years and insurance coverage will be equivalent to the outstanding loan balance during the first three months. The coverage will increase to 1.5 times of the outstanding loan balance from the fourth month onwards.
Manulife Philippines President and Chief Executive Officer Ryan Charland said the loan facility will allow DepEd employees to borrow without worrying about the financial burden in case of death.
“Teachers had been taking loans without having insurance protection. With the Easi-APDS Loan, they can borrow without the worry of leaving this financial burden to their families in case of death,” Mr. Charland was quoted as saying in the statement.
“We are happy to partner with DepEd to further improve their APDS program and help their employees find a fast, affordable and hassle-free option in case of any need,” added Neil Jumawan, Head of APDS Lending Group of CBS.
Earlier this year, the Education department suspended its APDS for loans and insurance payments until June as it worked on new guidelines. This made lenders unable to issue credit for teachers which hampered their credit growth for this year.
The product in now available through Easi-APDS loan centers as well as at CBS branches nationwide.
China Bank Savings, Inc. is the thrift banking arm of China Banking Corp. Meanwhile, Manulife China Bank Life Assurance Corp. is a bancassurance partnership between the Sy-led lender and Manulife Philippines. — K.A.N. Vidal