State-run Development Bank of the Philippines has more than tripled the processing fee cap on its salary loans to P5,000 from P1,500, saying the adjustment would help sustain the lending program.
The new fee, which took effect on Aug. 17, is equivalent to 1% of the loan amount or P5,000, whichever is higher, DBP said in an advisory.
“This adjustment supports DBP’s continuing efforts to strengthen and sustain the Salary Loan Program and ensure its continued availability to borrowers,” the government-owned bank said.
“DBP remains committed to providing accessible, reliable, and responsive financial services to Filipinos,” it added.
DBP offers its EC Credit Salary Loan to employees of accredited institutions, according to information posted on its website.
Borrowers may take out loans ranging from P10,000 to P2 million, with repayment terms of up to 48 months.
DBP was the Philippines’ 10th-largest bank by assets as of end-June, with P1.05 trillion.
Its loan portfolio stood at P651.73 billion, while deposits totaled P828.13 billion.
