All UP Provident Fund members have the exclusive benefit of availing loan products to help them augment any financial or monetary needs. Loan application is convenient (very few requirements) and quick (loan proceeds released in less than 1 week) so if you need loan assistance, check out the loan product suitable for you.


Additional resources regarding our loan products:


General Rules on UP Provident Fund’s Loans

  1. The collective amount of all loans a member may avail cannot exceed his or her Member’s Equity.
  2. Any member, whether new or returning, may apply for a loan regardless of the length of membership as long as the total loan amount will not exceed his or her Member’s Equity.
  3. Members do not have to pay the entire balance of the loan in order to renew their loan (re-loan). For example, even if they still have an outstanding loan, they may renew their Personal Equity Loan (PEL) every three (3) months as long as the amortizations in the past 3 months are fully paid.
  4. The effective interest method shall be used when computing interest on loans.
  5. Delinquent loans shall be offset automatically against the Member’s Equity one (1) year from the date of default. In addition, members whose loans were offset as per this policy shall not be allowed to avail of the same loan within six (6) months.
  6. Patronage Refund (i.e., rebates on loan interest paid) are granted to borrowers in good standing who have made at least six (6) months of loan amortizations during the year.

Loan Product #1: Personal Equity Loan (PEL)

EligibilityAny member in good standing (i.e., not in default of an existing UP Provident Fund loan)
Net take-home pay per month is at least equal to the required net take-home pay by DBM (currently at Php5,000 but this amount may change anytime depending on the General Appropriations Act passed by Congress)
Amount of LoanThe loanable amount is dependent on the member’s years of service in UP and amount of total Member’s Equity:
Less than 4 years of service in UP - Up to 75% of Member’s Equity
Between 4 and 15 years of service - Up to 85% of Member’s Equity
15 years of service or more - Up to 100% of Member’s Equity
Payment TermsDepending on the loan amount, the loan may be paid within the following payment periods:
P10,000 and below - Up to one (1) year
P10,001 to P30,000 - Up to two (2) years
P30,001 to P99,999 - Up to three (3) years
P100,000 and above - Up to four (4) years
Interest RateThe PEL interest rate per annum (p.a.) is dependent on the payment period of the loan:
Up to three (3) years to pay - 12% interest p.a.
Four (4) years to pay - 13% interest p.a.
RequirementsTwo (2) months most recent UP pay slip
Photocopy of ATM showing bank account number of any proof of bank account number (to ensure loan proceeds will be deposited to the correct bank account)
Service FeeP200.00
Mode of PaymentSalary deduction every month
Re-loan (Loan Renewal)A member can re-loan after paying the equivalent of three (3) months’ amortization.
Balance of the existing loan may be deducted from the proceeds of the new loan.
The borrower is allowed to use the proceeds of the renewed PEL to pay for BL and EML.
DelinquencyBorrowers who fail to pay three (3) months of the required monthly amortization are considered delinquent and will be subject to a surcharge of 1/2 of 1% per month, compounded monthly, applied on the amount due (principal + interest).
Delinquent loans are offset against the Member’s Equity one (1) year from the date of default. The offsetting of the total amount due against the Member’s Equity will be done in the following order: first, offset the accumulated earnings (subject to tax rules); then offset against the member’s contribution.

Loan Product #2: Bridge Loan (BL)

EligibilityAny member who is no longer eligible to avail of a Personal Equity Loan (meaning, net pay can no longer cover for the amortization) but still with remaining loanable equity
Amount of LoanUp to P20,000 or remaining loanable equity, whichever is lower
Payment TermsOne (1) year to pay
Interest Rate8% per annum
RequirementsTwo (2) months most recent UP pay slip
Photocopy of ATM showing bank account number of any proof of bank account number (to ensure loan proceeds will be deposited to the correct bank account)
Service FeeP200.00
Mode of PaymentDirect payment (Over-the-counter deposit to a bank account of UP Provident Fund)
Re-loan (Loan Renewal)A member can re-loan after full payment of the old loan. Balance of the existing loan may not be deducted from the proceeds of the new loan.
DelinquencyBorrowers who fail to pay three (3) months of the required monthly amortization are considered delinquent and will be subject to a surcharge of ½ of 1% per month, compounded monthly, applied on the amount due (principal + interest).
Delinquent loans are offset against the Member’s Equity one (1) year from the date of default. The offsetting of the total amount due against the Member’s Equity will be done in the following order: first, offset the accumulated earnings (subject to tax rules); then offset against the member’s contribution
Surcharge½ of 1% per month, compounded monthly

Loan Product #3: Emergency Loan (EML)

EligibilityAny member with an existing bridge loan (in good standing) and with remaining loanable equity.
Amount of LoanUp to P10,000 or remaining loanable equity, whichever is lower
Payment TermsOne (1) year to pay
Interest Rate9% per annum
RequirementsTwo (2) months most recent UP pay slip
Photocopy of ATM showing bank account number of any proof of bank account number (to ensure loan proceeds will be deposited to the correct bank account)
Service FeeP200.00
Mode of PaymentDirect payment (Over-the-counter deposit to a bank account of UP Provident Fund)
Re-loan (Loan Renewal)A member can re-loan after full payment of the old loan. Balance of the existing loan may not be deducted from the proceeds of the new loan.
DelinquencyBorrowers who fail to pay three (3) months of the required monthly amortization are considered delinquent and will be subject to a surcharge of ½ of 1% per month, compounded monthly, applied on the amount due (principal + interest).
Delinquent loans are offset against the Member’s Equity one (1) year from the date of default. The offsetting of the total amount due against the Member’s Equity will be done in the following order: first, offset the accumulated earnings (subject to tax rules); then offset against the member’s contribution
Surcharge½ of 1% per month, compounded monthly

Loan Product #4: Co-borrower Loan (CBL)

EligibilityOnly UP Provident Fund members who are permanent employees of UP are eligible to avail of CBL
Net take-home pay per month is at least equal to the required net take-home pay by DBM (currently at Php5,000 but this amount may change anytime depending on the General Appropriations Act passed by Congress), plus the monthly loan amortization for loan amounts of less than Php60,000 and at least Php8,000 for loan amounts of Php60,001 to Php100,000
Amount of LoanThe loanable amount is dependent on the member’s years of service in UP and amount of net pay:
Less than 6 years of service in UP - Net pay x 3
Between 6 and 11 years of service in UP - Net pay x 5
11 or more years of service in UP - Net pay x 7
Payment TermsDepending on the loan amount, the loan may be paid within the following payment periods:
P30,000 and below - Up to one (1) year
P30,001 to P50,000 - Up to two (2) years
P50,001 to P100,000 - Up to three (3) years
Interest Rate16% per annum (p.a.)
RequirementsTwo (2) months most recent UP pay slip
Borrower and Co-borrower shall also:

Sign a promissory note with a notarized Deed of Assignment that includes a grant of authority to deduct from the insurance benefits whatever accountabilities the member has to the Fund;

Designate the UP Provident Fund as first beneficiary in his/her life insurance policy with the insurance provider of the Fund
Service FeeP200.00
Mode of PaymentSalary deduction every month
Co-borrowersFor loan amounts less than Php60,000:

One (1) or two (2) co-borrowers, who must be permanent employees of UP, with combined net pay equal to or greater than the net pay of the borrower.
For loan amounts between Php60,000 and Php100,000:

At least two (2) co-borrowers, who must be permanent employees of UP, with take home pay of at least P8,000 each.
In case the co-borrower will avail of a loan, the amount of loan guaranteed by said co-borrower shall be included in the computation of and will reduce his/her own loanable amount.
A member shall not be a co-borrower more than twice.
Two members cannot be each other’s co-borrower in their respective CBL.
Re-loan (Loan Renewal)A member can re-loan after paying the equivalent of six (6) months’ amortization.
Balance of the existing loan may be deducted from the proceeds of the new loan.
DelinquencyBorrowers who fail to pay three (3) months of the required monthly amortization are considered delinquent and will be subject to a surcharge of 1/2 of 1% per month, compounded monthly, applied on the amount due (principal + interest).
Delinquent loans are offset against the Member’s Equity one (1) year from the date of default. The offsetting of the total amount due against the Member’s Equity will be done in the following order: first, offset the accumulated earnings (subject to tax rules); then offset against the member’s contribution.
Surcharge½ of 1% per month, compounded monthly

Loan Product #5: Balance Transfer Loan (BTL)

EligibilityAny member in good standing (i.e., not in default of an existing UP Provident Fund loan)
Net take-home pay per month is at least equal to the required net take-home pay by DBM (currently at Php5,000 but this amount may change anytime depending on the General Appropriations Act passed by Congress)
Amount of LoanThe loanable amount is dependent on the member’s years of service in UP and amount of total Member’s Equity:
Less than 4 years of service in UP - Up to 75% of Member's Equity
Between 4 and 15 years of service in UP - Up to 85% of Member's Equity
15 or more years of service in UP - Up to 100% of Member's Equity
Payment TermsMinimum of one (1) year
Maximum number of years is equal to the remaining years of the existing loan (To be rounded up. Example: If the remaining term of the existing loan is 5 years and 1 month, when transferred to UP Provident Fund, the BTL loan term is rounded up and becomes 6 years.)
Interest RateThere is no fixed BTL interest rate. It is charged on a case-by case basis, using this formula:
BTL Interest Rate = Annual interest rate of the loan to be transferred minus two (2) percentage points

(Example: If the loan to be transferred charges 8% interest, then the BTL interest rate becomes 6% once transferred to UP Provident Fund.)
RequirementsTwo (2) months most recent UP pay slip
Duly accomplished BTL Loan Information Slip
Original copy of bank certification or official statement from the bank or
financial institution issued in the last one (1) month containing latest loan details, specifically stating, among others:

(1) Interest Rate of the loan;
(2) Remaining loan or principal balance;
(3) Loan maturity date or date of final amortization payment;
(4) Repricing period, if applicable
Service FeeP200.00
Mode of PaymentSalary deduction every month
In cases of underpayment or no payment using salary deduction, member has the option to pay via over-the-counter deposit to a bank account of UP Provident Fund.
RepricingIf the loan to be transferred has an interest repricing policy, UP Provident Fund will follow the same repricing period on the transferred loan.
For example, if the original loan’s repricing period is three (3) years, the BTL will be repriced three (3) years after its approval. The new (repriced) interest rate will follow this formula:
Repriced BTL Interest Rate = Annual interest rate (of similar loan product offered by the same or similar institution at the time of repricing) minus two (2) percentage points
Co-borrowerNone
Re-loan (Loan Renewal)None
DelinquencyBorrowers who fail to pay three (3) months of the required monthly amortization are considered delinquent and will be subject to a surcharge of 1/2 of 1% per month, compounded monthly, applied on the amount due (principal + interest).
Delinquent loans are offset against the Member’s Equity one (1) year from the date of default. The offsetting of the total amount due against the Member’s Equity will be done in the following order: first, offset the accumulated earnings (subject to tax rules); then offset against the member’s contribution.
Surcharge½ of 1% per month, compounded monthly