RLS Loan

The maximum loanable amount is as follows:

– Faculty: P50,000
– REPS: P20,000
– Admin Staff: P20,000

The amount may only be used to purchase a computer (desktop, laptop, tablet, etc.), accessories (monitor, mouse, printer, etc.), mobile phone, or any other gadgets needed by the employee for work during the work-from-home or remote learning setup in UP. Only purchases made on or after January 1, 2020 are eligible.

The loanable amount shall be solely dependent on the net take-home pay of the borrower (after all salary deductions), as explained in the item on “Net Take-Home Pay Requirement” below.

Unlike other existing loan products of UP Provident Fund, the RLS loan amount will NOT be charged against the Member’s Equity. This means the RLS loan amount shall not be counted in the determination of the member’s “total outstanding loans” with UPPF which is used in computing the loanable amount for other loan products of UPPF.

To avail the maximum RLS loanable amount (in the right column), the borrower must have the minimum net take-home pay (in the left column):

– Minimum Net Take-Home Pay: P5,333.00 || Loanable Amount: P20,000 (maximum for REPS and Admin Staff)
– Minimum Net Take-Home Pay: P5,500.00 || Loanable Amount: P30,000
– Minimum Net Take-Home Pay: P5,667.00 || Loanable Amount: P40,000
– Minimum Net Take-Home Pay: P5,833.00 || Loanable Amount: P50,000 (maximum for faculty)

The UP Accounting Office (or other appropriate offices) shall ensure that the loan amortization payment of the employee for UP Provident Fund’s RLS loan shall not be affected in case the employee decides to borrow from GSIS, PAG-IBIG, or other lending institutions at a later date.

By default, the loan period is five (5) years maximum. Still, borrowers may choose their preferred loan duration (1 year / 2 years / 3 years / 4 years / 5 years) and input this in the application form.

To be credited to the nominated bank account of the borrower in our partner banks (Land Bank, DBP, PNB, Veterans Bank), released within two days from the processing cut-off.

If application is submitted before Monday 12 noon cut-off, proceeds will be released on Wednesday afternoon. If application is submitted after Monday 12 noon but before Wednesday 12 noon cut-off, proceeds will be released on Friday afternoon. Applications submitted after Wednesday 12 noon shall be processed in the succeeding week during the Monday 12 noon cut-off.

Payment of monthly amortization shall primarily be through salary deduction.

Direct Deposit to UP Provident Fund’s bank account is only allowed if Salary Deduction is no longer possible (e.g., for borrowers on LWOP or other instances where net pay is no longer sufficient to pay the loan amortization).

The loan amount may only be used to purchase a computer (desktop, laptop, tablet, etc.), accessories (monitor, mouse, printer, etc.), mobile phone, or any other gadgets needed by the employee for work during the work-from-home or remote learning setup in UP. Only purchases made on or after January 1, 2020 are eligible.

During application or within two (2) weeks after the crediting of RLS loan proceeds, the member must submit a valid proof of purchase, for example:

– Copy of Official Receipt (OR), whether printed or soft copy, issued by a credible supplier or company
– Any other proof of valid payment for the purchase of the computer, gadget, etc.
– Unofficial invoice, handwritten receipt, and other similar documents are NOT allowed.

Additional Requirements:
– The valid proof of purchase shall clearly indicate the name of the buyer, date of transaction, purchase price, and details or description of the item bought.
– The document shall be under the name of the borrower or his/her spouse or immediate family.
– Only transactions made on or after January 1, 2020 are eligible.
– UPPF reserves the right to determine which documents may be accepted as valid proof of purchase.

Purchase Price in the Proof of Purchase:
– The price indicated in the proof of purchase must at least be 90% of the loan amount. (This is to prevent borrowers from getting a high loan amount but only using a fraction of it to purchase the gadget.)

Conversion of Loan:
– If the submitted proof of purchase indicates an amount that does not meet the rules above, the differential amount shall be treated as and converted to a Personal Equity Loan (PEL) which shall be charged the corresponding interest rate (currently 12% interest rate per annum) to be paid by the borrower. Alternatively, the borrower may choose to return the differential amount via direct deposit to UP Provident Fund so that the amount will no longer be charged any interest.

– Failure to submit a copy of the valid proof of purchase within two (2) weeks from crediting of proceeds shall result in the entire loan amount to be treated as and converted to a Personal Equity Loan (PEL) which shall be charged the corresponding interest rate (currently 12% interest rate per annum) to be paid by the borrower.

– If the borrower is a UPPFI member and his/her PEL amount is already at maximum allowed limit, the differential amount can no longer be converted to PEL. Therefore, the amount must be returned to UPPFI within one (1) week or, if not returned, the amount shall be offset automatically from the Member’s Equity.

The borrower will not be charged any interest on the loan.

Borrowers who fail to pay three (3) months of the required monthly amortization are considered default and subject to surcharge

Loans in default are charged the same surcharges as UPPF’s other loans: 1⁄2 of 1% per month, compounded monthly, applied on the amount due (principal + interest).

In case of loan default, UP Provident Fund reserves the right to initiate, among others, the following recourse:

a. If the borrower is a member of UP Provident Fund, the total unpaid principal and all associated surcharges shall be automatically offset against the entire Member’s Equity (including earnings on the UP contribution and total UP contribution) on the date of default. In case the Member’s Equity is insufficient to pay outstanding obligations, the Fund shall serve a demand letter, requiring the borrower to pay the total unpaid principal and/or all associated surcharges within thirty (30) calendar days. Other additions to the Member’s Equity in the future shall also be automatically used to offset the unpaid loan amount.

b. In case of death of a borrower who is a member of UP Provident Fund, the life insurance benefit shall be automatically used to offset any unpaid loan obligations of the borrower with UP Provident Fund.

c. If the borrower is not a member of UP Provident Fund, the Fund shall serve a demand notice to the borrower, requiring the borrower to pay the total unpaid principal and/or all associated surcharges within thirty (30) calendar days.

d. Prior to loan approval, the borrower shall also sign an authorization allowing UP Provident Fund and UP to deduct loan payments from his/her UP salary in case of default. If the borrower (regardless if member or not a member of UP Provident Fund) still has not complied with the demand notice, UP shall then automatically facilitate loan deductions from the bonuses, allowances, or similar receivables to salary due to the employee in the future, in accordance with government rules.

The RLS loan is charged P200 service fee upon release of loan proceeds, same as other UPPF’s loan products.

Co-borrowers are not allowed in the RLS loan.

Renewal of loan or re-loan is also not allowed when availing RLS loan.