The Bangko Sentral ng Pilipinas (BSP) has adjusted rules raising the maximum repayment period for salary-based general purpose consumption loans (SBGPCLs) from the standard three years — extendable only to five years in special cases — to seven years. The adjustment applies to all eligible borrowers, including teachers and public and private sector employees.
SBGPCLs are unsecured loans used for personal and household needs such as education, healthcare, emergencies, and daily expenses, with repayments usually deducted from salary or regular income. The longer maximum term lowers monthly amortization amounts, making repayments more affordable and manageable for small and regular-income earners. At the same time, the seven-year cap acts as a safeguard to prevent excessive debt.
Importantly, the seven-year limit is not a fixed term; banks and financial institutions will still set actual repayment schedules based on each borrower’s income, credit standing, and ability to pay. This ensures responsible lending while supporting financial stability. The rule does not cover housing, vehicle, or other specialized loans, which remain subject to their own terms.
For teachers and similar fixed-income earners, the adjustment reduces the risk of financial strain while maintaining access to credit. The BSP is also partnering with the Department of Education and financial institutions to promote financial literacy, ensure sufficient take-home pay, and encourage prudent borrowing. Borrowers may also consider refinancing options through agencies like GSIS and SSS, with learning resources available via the BSP Learning Resources platform.
