The loan facility is part of the memorandum of agreement (MoA) executed between LBP and DepEd-ARMM upon the imprimatur of the ARMM Regional Governor Mujiv Hataman. This came about after it was found out that a sizable chunk of public school teachers mainly in Maguindanao are in huge debts to private lenders or lending institutions. Because of these huge debts, Regional Governor Hataman expressconcerned over its effect on teaching-learning quality and on the morale of public school teachers.
To help mitigate the situation and hopefully free the concerned teachers from the highly usurious transactions, this loan facility was created subject to 7 to 8% interest per annum; which is way lower than the 48% per annum or 4% monthly interest charge by private lenders.
LBP revealed that a total of 600 more applications are currently being process.