The reminder is contained in DepEd Memorandum No. 049, s. 2026, dated August 12, 2026, titled “Reiteration of the Reminder to Refrain from Using ATM Payroll Cards as Loan Collateral.”
The memorandum applies to DepEd officials and personnel, including public elementary and secondary school heads and teachers, as well as other concerned employees.
According to DepEd, the directive reiterates an earlier Office Memorandum issued in 2020 and is also consistent with an advisory from the Bangko Sentral ng Pilipinas (BSP) regarding the risks associated with the Sangla-ATM scheme.
Why DepEd Warns Against “Sangla-ATM”
DepEd described Sangla-ATM as a high-risk and potentially abusive lending practice that may expose personnel to several financial and security concerns.
Among the risks cited are:
Uncontrolled withdrawals from an employee's payroll account;
Financial exploitation;
Excessive indebtedness; and
Possible misuse of personal and sensitive information.
Under this type of arrangement, borrowers may be required to surrender their ATM cards or account access to lenders as a condition for obtaining a loan. DepEd reiterated that ATM payroll cards should not be used or surrendered as loan collateral.
Employees Urged to Be Careful When Borrowing
DepEd strongly advised its personnel to exercise prudence and due diligence before entering into any loan agreement.
Employees are encouraged to avoid informal or unauthorized lending arrangements that impose excessive interest rates, unfavorable terms, or oppressive conditions.
Personnel must also protect their ATM payroll accounts and safeguard their personal and sensitive information at all times.
Use Only Authorized and Regulated Loan Facilities
Instead of resorting to Sangla-ATM arrangements, DepEd encouraged personnel to avail themselves only of accredited, authorized, and regulated loan facilities.
These may include loan programs or services offered through:
Government Service Insurance System (GSIS);
DepEd Provident Fund;
Land Bank of the Philippines;
Pag-IBIG Fund;
SEC-registered and duly licensed lending companies; and
Other DepEd-accredited private lending institutions.
DepEd emphasized the importance of choosing lending institutions that provide transparent, accountable, and reasonable loan terms and conditions.
The latest memorandum serves as a renewed reminder for teachers and other DepEd personnel to protect their salaries, payroll accounts, and personal information while making responsible financial decisions.
Important Note: DepEd Memorandum No. 049, s. 2026 is a reiteration of an existing prohibition and reminder, rather than an announcement of a new lending policy. Personnel are encouraged to read the complete memorandum and applicable DepEd regulations for official guidance.
Source: DepEd Memorandum No. 049, s. 2026
Reviewed by DepEd Click
on
August 13, 2026
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