Sun Savings Bank gets P105M loan to expand loan portfolio for teachers-A A +A
Sunday, March 16, 2014
A SYNDICATE of financial institutions has granted a P105-million loan for Sun Savings Bank, based in Cebu, to expand its loan portfolio for teachers who serve the Department of Education (DepEd).
Top executives of Security Bank, Philippine National Bank and Multinational Investment Bancorporation attended the signing ceremony last March 5.
“The participation of the large banks in the loan syndication is a clear manifestation of their confidence in the management and financial strength of Sun Savings,” said Sun Savings Bank Chairman and President Francisco A. Dizon.
The fixed rate, five-year term loan will enable Sun Savings, which has offices in the cities of Cebu and Talisay, to provide loans to more DepEd teachers to help meet various needs, including home renovations and college tuition of their children.
“Sun Savings currently offers the lowest interest rate for teachers’ loans and is assured of collection through automatic monthly salary deduction by the DepEd,” Dizon explained.
As of March 6, 2014, the thrift banking system, which includes Sun Savings, had P539 billion in outstanding loans, according to the Bangko Sentral ng Pilipinas (BSP).
Of that amount, 34 percent (P186 billion) paid for real estate and rentals, while loans to individuals for their consumption accounted for 22.8 percent (P123.31 billion). The BSP also reported that education loans, at P4.91 billion, took up 0.91 percent of all outstanding loans granted by thrift banks.
Sun Savings began operating in June 2012 by offering interest-earning accounts for a minimum deposit of P200. Its aims include, apart from extending loans to DepEd teachers, providing working capital financing for small and medium entrepreneurs. (PR)
Published in the Sun.Star Cebu newspaper on March 17, 2014.