Top Financial Institutions for Uniformed Personnel in the Philippines
In the financial services
market, a financial institution now offers a variety of credit types,
investments, and deposits to individuals and businesses. While some financial
institutions continue to provide general public services, others were most
likely established to provide more advanced services to a smaller group of
customers and government employees.
This article focuses on
the top Philippine financial institutions that cater to the needs of uniformed
personnel such as PNP, military, and other government employees. Here, we’ll
examine the leading financial institutions (in any order) and provide an
unbiased evaluation of their benefits and drawbacks based on their services and
offerings to clients or investors.
Public Safety Savings and
Loan Association, Inc. (PSSLAI)
Beginning on July 1, 2003,
PSSLAI remained true to its promise to assist and defend those who aid and
support the communities. This financial institution was founded to protect the
vital interests of the public safety industry. Since that time, PSSLAI has
provided services to the Philippines National Police, the Bureau of Fire
Protection, and their household members.
PSSLAI created products and
services with the fulfillment and financial security of public safety personnel
in mind. It invested in excellent customer service and cutting-edge technology
to provide its members with an exceptional experience. In addition to
maintaining the caliber of its goods and services, PSSLAI’s membership
increased due to its ethical business practices and integrity.
PROS:
●
It is the Philippines’
most esteemed and reliable SLAI.
●
Has a rising asset
portfolio worth PHP 67 billion as of December 2021.
●
The Philippine Business
Profiles lists it among the Top 500 Corporations in the Philippines in 2015 and
the Top 400 Corporations in 2016.
●
The institution is
registered with the Securities and Exchange Commission (SEC) and is overseen
and authorized by Bangko Sentral ng Pilipinas (BSP) (SEC).
●
It offers no hidden fees
and low-interest rates.
●
PSSLAI delivers the
highest revenue on savings and investments that is also tax-free.
●
Provides fast access to
funds
●
It offers an unmatchable
rate of 18% yearly on investments made as capital contributions.
●
Through Corporate Social
Responsibility (CSR) initiatives and programs, 5% of PSSLAI’s net income is
distributed to its members.
● Possesses a good standing of Business Bureau rating of A+
● PSSLAI aims to orient members on the value of prudent borrowing and saving.
CONS:
●
An assessment charge of
late payment of 6% of the past-due sum.
●
Only PHP 125,000 can be
deposited by members each quarter.
●
Exclusively PHP 2,000,000
is set as the CAPCON’s maximum bound.
● PNP and BFP employees only are eligible for the products and services PSSLAI provides.
● PSSLAI is not a member of the PDIC (Philippine Deposit Insurance Corporation), although it is regulated by the BSP (Bangko Sentral ng Pilipinas).
PSSLAI
PRODUCTS AND SERVICES
|
SAVINGS &
INVESTMENTS |
LOAN PRODUCTS |
SERVICES |
|
CAPITAL
CONTRIBUTION (CAPCON) |
SALARY
LOAN |
ITRACK |
|
PREMIUM
SAVING ACCOUNT (PSA) |
EMERGENCY
LOAN |
PSSLAI
BILIS ONLINE |
|
CASH
ADVANCE STORAGE ACCOUNT (CASA) |
BUY-OUT
LOAN |
PSSLAI
BILIS MOBILE APP |
|
|
BACK2BACK
LOAN |
CONVENIENCE
FEES |
|
|
EASY
PAY LOAN |
PSSLAI
VISA CARD |
|
|
READY
LOAN |
|
|
|
PENSION
LOAN |
|
|
|
VEHICLE
LOAN |
|
|
|
PRE-OWNED
VEHICLE LOAN |
|
|
|
MOTORCYCLE
LOAN |
|
|
|
CALAMITY
LOAN |
|
PSSLAI
offers many benefits, particularly loan options. Ask the PSSLAI if you want to
save more in a quarter. Check out their website for more information about their loan services and other
life security loan arrangements.
Armed Forces
& Police Mutual Benefit Association, Incorporated (AFPMBAI)
For
Philippines uniformed personnel and their families, AFPMBAI is an established
mutual benefit association that provides security and valuable financial
solutions. Its members come from the Philippine Coast Guard, PNP, BFP, Bureau
of Jail Management and Penology, AFP, and others. The institution’s mission is
to deliver comprehensive insurance, lifetime financial security opportunities,
and vital social services to members and families.
This
financial institution was founded in 1949 as the AFP Mutual Benefit System
(AFPMBS). Its economic history has documented several member loans programs
since its operations. It reached the PHP 10 billion mark in 2011, and after 15
years of service, it achieved the PHP 15 billion mark in 2015. After three
years, AFPMBAI had its highest-ever revenue of PHP 32.8 billion in 2020. The
financial institution continues offering customers more flexible loans and
security options.
PROS:
● PCG and
other members of the uniformed workforce have the option to join this financial
institution.
● AFPMBAI
purchased a 10-hectare land for the construction of Katarungan Mutual Homes.
● Introduced
Members for Educational Assistance Loan (MEDAL)
● After six
total monthly payments, their salary loan is reinstated.
● Half of
each member’s monthly contribution is set aside for their insurance.
● The right
to FREE Comprehensive Financial Assistance Benefits, including Battle Injury
Assistance (BIA), is also granted to members.
● It offers
higher living benefits and death entitlements (natural, accidental, and KIA).
● All
members are entitled to the use of educational loans.
● Maximum
borrowing power up to 90% of share value with only 6% annual interest
● Members of
their endowment plan can receive 100percent of the maturity benefit after 20
years and a bonus of 20percentage of the insurance amount every five years.
● Insurers are covered for 15 years, which will pay out in their savings plan in just ten years.
● Members will receive dividend payments in the fourth year of the policy and continue every year until the year before the policy maturity date.
CONS:
● The borrower may apply for a salary loan if the member is currently enrolled in either the E56 or the Permanent Insurance Plan.
● Per borrower, a single salary loan is permitted.
AFPMBAI
PRODUCT AND SERVICES
|
LIFE INSURANCE |
INSURANCE LOANS |
REAL ESTATE LOANS |
|
LIFE
INSURANCE PROTECTION PLANS |
SALARY
LOAN |
REAL
ESTATE HOUSING LOAN |
|
MBAI
5ECURE |
POLICY
LOAN |
REAL
ESTATE MORTGAGE LOAN |
|
LIFE
INSURANCE SAVINGS PLANS |
EQUITY
LOAN |
PRE-RETIREMENT
REAL ESTATE MORTGAGE LOAN |
|
LIFE
INSURANCE RETIREMENT PLANS |
MEMBERS
EDUCATIONAL ASSISTANCE LOAN (MEDAL) |
REAL
ESTATE PROPERTIES |
|
LIFE
INSURANCE EDUCATIONAL PLANS |
EXPANDED
SALARY LOANS |
|
|
GROUP
LIFE INSURANCE |
EMERGENCY
LOANS |
|
The
advantages or strong points above are not entirely stated about their loan
offerings. To learn more about their offerings and other details, visit their website.
Armed Forces and Police
Savings & Loan Association, Inc. (AFPSLAI)
AFPSLAI is a private
savings and loan association that has no stocks and makes no profit. It was
founded in 1972 and was initially registered with the Securities and Exchange
Commission (SEC).
The Armed Forces of the
Philippines, the Philippine National Police, the Philippine Constabulary
Bureau, the Philippine Judicial and Military Police, and their civilian
employees are all members of the AFPSLAI, which the Bangko Sentral ng Pilipinas
oversee.
PROS:
● Due to AFPSLAI’s
stabilization, you can be sure that your investments are safe.
● AFPSLAI provides
competitive interest rates across all loan products, so you get more for your
money.
● AFPSLAI offers more than
just loans and savings; also the well-being of its members
● Your Capital
Contribution Account (CCA) offers competitive dividend rates, and your Savings
Deposits Account (SDA) offers tax-free high-interest rates!
● The financial
institution offers a variety of loan products.
● Transactions are
convenient.
● PHP 1,500,000 is the
maximum salary loan amount.
● Depending on your
ability to repay, you may be able to obtain another line of credit even if your
salary loan is still unpaid.
● Loans are renewable when they reach 20% of the original loan amount.
● Except for Back-to-Back Loans, rejected insurance claims, and whose age exceeds 80 years, all loans made by AFPSLAI are protected by credit redemption insurance.
CONS:
● Their salary loan is
subject to the single borrower cap
● Since the institution last took on new capital placements, more than a year has passed.
● Not covered by PDIC
AFPSLAI
PRODUCT AND SERVICES
|
DEPOSIT |
LOANS |
SPECIAL SERVICES |
|
CAPITAL
CONTRIBUTION ACCOUNT |
SALARY/PENSION/MULTIPURPOSE
LOANS |
ASSISTANCE
TO LIFT MEMBERS SURVIVORS |
|
SAVINGS
DEPOSIT ACCOUNT |
EMERGENCY
LOAN |
AUTOMATIC
PAYROLL DEDUCTION FOR CCA |
|
SAVINGS
DEPOSIT REMITTANCE ACCOUNT |
PVAO
PENSION LOAN |
AFPSLAI
PENSION EPRESS (APEX) |
|
TIME
DEPOSIT ACCOUNT |
CALAMITY
LOAN |
EXPECTED
DIVIDEND ADVANCE (EDA) |
|
PENSION
ACCOUNT |
COMMUTATION
LOAN |
U-REMIT |
|
|
PERSONAL
LOAN |
INSTA
CREDIT |
|
|
BACK
TO BACK LOAN |
AFPSLAI
MOBILE APP |
|
|
REAL
ESTATE LOAN |
|
|
|
VEHICLE
LOAN |
|
|
|
PRE-OWNED
VEHICLE LOAN |
|
|
|
BUSINESS
LOAN |
|
Since 1972,
AFPSLAI has been the next-oldest financial institution after AFPMBAI and our
top-tier financial provider of loans and services on the list. It also has a
variety of deposit options that will benefit members in the long run. If you
are interested to avail of its product and services, you can find more details
on their website.
Filipinos’ Reasons for Loan Applications
Education
Education is costly and
significant for every Filipino. Some of the best universities in the nation may
cost you over P100,000 a year to enroll your child. The same holds for
developing your skills because certification programs are pricey. Due to the
opportunities, it opens up future income and is a wise investment.
Launching a Business or
Investment
Financing a business or
investment is the second main reason Filipinos borrow. A business loan can help you launch your
business. It’s a great way to access tools, machinery, certifications,
warehousing, etc.
Car and Home Repair and
Maintenance
Loans for personal use can
enhance lifestyle. The cost of renovations and auto repairs is high. Personal
loans can be used to pay for home or vehicle restoration after a natural
disaster.
Medical Costs/Health Care
Expenses
Personal loans are good in
emergencies. At the same time, healthcare and hospitalization can deplete
savings.
A personal loan can help
cover unexpected medical expenses.
Consolidate Debt
Undisclosed to many,
obtaining a personal loan is an excellent way to take care of any unpaid
balances from prior debts you may have. By combining your existing loans or
credit card balances into one larger loan, you would be able to manage your
finances better. This way, you can pay down older loans and lower the interest
payment to make it more manageable.
FAQs:
Is AFPSLAI a public or private organization?
AFPSLAI is a private non-bank financial firm under the control of the Bangko Sentral ng Pilipinas (BSP).
How do I apply to be an AFPMBAI?
Due to their MBAI Protek basic insurance policy, AFP, BFP, BJMP, and PCG employees are automatically Members of the Association upon joining the service.
Why should an AFPSLAI member be required to update their membership details?
Each member must update their membership data every five years whenever their personal and contact information changes (such as their address, phone number, or civil status) or their physical condition affects their ability to sign. If necessary, you must update your registration information or record to contact you quickly or send a letter.
The Central Bank of the
Philippines’ rule and the Association’s policy call for the routine updating of
membership information.
How reliable is AFPSLAI?
The total assets of AFPSLAI as of the December 2020 end are PHP 126.56 billion. Capital contributions and savings deposits are securely reinvested in national government securities at top BSP-accredited banks. Predicated on its annual income attainment, AFPSLAI has constantly declared competitive dividend rates.
Which of these financial institutions has been around the longest?
On our list of potential financial institutions, AFPMBAI is the one that has the most extended history. The year 1949 marks the beginning of its existence. Following that will be PSSLAI, then AFPSLAI.
Which financial institutions have the most significant number of members of their uniformed personnel?
The AFPSLAI financial institution has many members from various uniformed sectors, such as the military, the PNP, and many others.
The Takeaway:
Compared to other businesses in the Philippines, financial institutions bring in the most money in the Philippine market. According to the Bangko Sentral ng Pilipinas (BSP), Filipinos receiving loans increased significantly from 29% in 2017 to 41% in 2019.
It is not surprising,
given that more Filipinos are starting to appreciate the value of financial
management and are becoming more aware of the services that can help them
leverage their finances, such as loans.
In the Philippines,
financial institutions for uniformed personnel, such as PNP, are established to
meet the needs of community protectors and their families regarding finances or
life security as rewards for their allegiance and commitment to serving the
nation.
Suppose you are a part of
the PNP or another uniformed personnel in the Philippines and would like to
apply for financial loans or life insurance. In that case, you can check the
top three financial institutions listed above to see if you qualify and learn
more about the products and services they provide.
However, obtaining a loan
entails obligations you must fulfill to keep a good credit rating. Because of
this, it’s crucial to make sure you’re using it appropriately.