Loan Services

Contents

3.1   Productive Loan         
3.2   Provident Loan         
3.3   Special Loan         
3.5   Emergency Loan         
3.6   Secured Loan         
3.7   Appliance Loan         
3.10  Privilege Loan         
3.11  Rice Loan         
3.12  Coop Healthcare Loan         
3.13  Balik-Eskwela Loan         
Part 1           
7.1  Layunin           
7.2  The 6'Cs           
7.3  Batayan ng halagang mauutang        
Part 2           
7.4  Uri ng utang at halaga ng maaaring utangin           
7.5  Required Collaterals (Regular Loan)           
7.6  Mga kabawasan sa utang           
7.7  Computation of Interest Due           
7.8  Computation of Fines           
7.9  Prompt payment discount           
7.10  Computation of prompt payment discount

 

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I.   GENERAL OBJECTIVES:

Granting loans to members is one of the most important functions of San Dionisio Credit Cooperative. The by- laws state that the Credit Committee has a general supervision over all loans to members.

In the evaluation of all loan applications, the Credit Committee and its staff shall inquire carefully into the real purpose of the loans and must satisfy themselves that every loan promises to be of benefit to the borrower. However, it is also their duty to see to it that the fund of the Credit Cooperative is protected by inquiring carefully into the character and determining the capacity and financial condition of the borrower, co-maker(s) and guarantor(s). The Credit Committee and its staff shall exercise utmost care in the appraisal of securities or collaterals offered.

SDCC envisions a strong, economically viable, service-and people- oriented cooperative association, responsive to the needs and problems of its members, dedicated to uplift their living standard thru the habit of thrift, intelligent use of credit and the wise use of money. As far as practicable, the primary aim is to conduct these lending policies in such a manner that the members shall receive a just, fair and equal treatment.

SDCC, as an institution, is guided by sound and time-tested cooperative principles and practices. Through financial counseling and continuous education, SDCC aims to develop among its members the values of self reliance, initiative, integrity and cooperation- the virtues and values upon which democracy, freedom and human dignity are founded.

In the light of the above objective, and subject to the requirements set forth by R.A. 6938 and the by-laws of SDCC, the following Loan Policies are hereby unanimously approved.

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II.   The 6 C’s OF CREDIT GRANTING:

  • Character - of the member-borrower as shown by his reputation in the community and workplace,depositing and repaying habits, and participation in coop meetings and activities.
  • Capacity - of the member-borrower as shown by the amount of uncommitted income, health, age, size of family, resourcefulness and other obligations.
  • Collateral- offered by the member-borrower to secure the loan. Ex. TCT, memorial lot certificate, motor vehicle, machinery and equipment, home appliances.
  • Capital - of the member-borrower in the form of his/her share capital and savings deposits.
  • Condition - factors affecting the member-borrower which includes the nature of the project, business and kind of competition it has, profile of customers and suppliers as well as the prevailing socio-economic and political condition of the community.
  • Co-makers/guarantors - of the member-borrower which refer to the credit standing of other members who, by written agreement, commit to conditionally answer for the payment of the member- borrower’s obligation when due and demandable.

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III.   TYPES AND PURPOSES OF LOAN:

  • Productive Loans - are those for the purpose of generating income/ business and or creating opportunity for employment.
  • Provident Loans - are those not primarily intended to generate income nor to create an opportunity for employment but for the primary purpose of giving financial relief to the borrower and his/her family.
  • Special Loans - this type of loan is over and above the loan ceiling for the regular loan.
  • Special Loans - Housing - this type of loan is intended for the purchase of a lot, house and lot, assumption of mortgage or house construction .

Qualifications for Availing of Special Loan/Special Loan-Housing

  1. At least three (3) years as SDCC member
  2. Minimum Share Capital (Fixed Deposit) of P 15,000.00
  3. With minimum Savings Deposit (SD of P 2,500.00)
  4. With Health card
  5. With two (2) previous loans of at least P 20,000.00 (secured or regular loan) and with an excellent credit record

Requirements Needed (all original copies):

  1. Original copy of Transfer Certificate of Title (TCT)
  2. House insurance
  3. Certified true copy of TCT from Registry of Deeds
  4. Location/ Vicinity Map
  5. Tax Clearance/ Certification (Assessors Office)
  6. Declaration of Real Property Value
  7. Latest Tax Receipt
  8. Proof of purpose
  9. Tax Identification Number ( TIN )
  10. Proof of income: Payslip/ Certification of Employment/ ITR / Business Permit/ Remittance Slip/ Bank Accounts/ Statement of Accounts
  11. Photo copy of SDCC-ID, residence certificate and any government ID
  12. Payments should be made through issuance of Post Dated Checks (PDC’s)
  • Emergency Loan - any loan that needs immediate attention and for an immediate necessity.

Kinds of Emergency Loans

  1. Immediate and continuous medication
  2. Hospitalization expenses
  3. Member/ borrower is a victim of fortuitous events
  4. Funeral expenses due to sudden death of a member of the family.
  5. Maternity expenses
  6. Payment of outside obligation due to hospitalization

Who May Avail:

  • immediate family member such as spouse, father, mother, children, brothers, sisters, grandchildren, grandmother/ grandfather.
  • first degree of consanguinity: aunt, uncle, nephew, niece
  • first degree of affinity: mother in law/ father in law.

 

  • Secured Loan - any loan, the amount of which is equal to or less than the total share capital, savings deposit and time deposit of the member; borrower pledges his/ her deposit as full collateral.
  • Appliance Loan- this type of loan will be primarily used for acquiring household appliances. Co- makers or guarantors are not required and all members in good standing are qualified to avail of this type of loan.
  • OTHER SPECIAL TYPES OF LOAN:
  • Additional Educational Loan (Provident Educ) - this type of loan is intended for educational purposes. The paid portion of an existing loan can be availed of.
  • Additional Secured Loan - is equivalent to the paid portion of a secured loan or deposit of member-borrower.
  • Character Loan
      Implementing Guidelines
    A member/ borrower can avail of a character loan simultaneoisly different types of loan or even without existing loan or with newly released loan, provided the member has previous good credit records specified in the implementing guidelines as approved by the Board of Directors; and most recent loan/s or present loan/s is/are updated and capacity to pay has been determined thru loan packaging.

    1. Member/ borrower shall be subject to re-package, if without loan package within the last twelve (12) months.

    2. Loanable amount equivalent to one hundred percent (100%) of share capital but NOT to exceed Fifty Thousand (P50,000.00) Pesos only for those members with twelve (12) consecutive months of good credit record.

    3. Loanable amount equivalent to fifty percent (50%) of share capital but NOT exceed Twenty Five Thousand (P25,000.00) Pesos only for those members with three (3) consecutive months to less than twelve (12) consecutive months good credit record.

    A character loan may be grated to a member/borrower even if most recent loan/s has/have fine/s collected but shall not exceed 3x within the term of the loan.  
    A Non-MIGS member borrower can avail of a character loan, equivalent only to 70% of allowable character loan as approved by the Board of Directors, provided his/her score in the MIGS criteria under loan category is not zero. A Non-MIGS member/borrower, can avial the amount equivalent only to 70% to 100% of his/her share capital but  NOT exceed Seventeen Thousand Five Hundred (P17,500.00) Pesos or Thirty Five Thousand (P35,000.00) Pesos, whichever is applicable.
    Character loan shall be subject to a monthly interest, based on diminishing balance, as approved by the Board of Directors. Monthly interest rate shall be 1.50% based diminishing balance.
    Character loan shall be within the Debt-in-income (DTI) Ratio as approved by the Board of Directors. Debt-in-income (DTI) Ratio shall be the maximum rate of 65% after considering all existing loans, if any.
    Character loan shall be subject to loan insurance but shall NOT be subject to service fee. CLPP premium shall be deducted upon release of loan via issuance of official receipt (OR).
    Term of payment shall be as approved by the Board of Directors. Maximum term is twenty four (24) months.
    Refinancing of character loan shall be allowed. Payment of existing CL payment order slip (P.O.S) and deducted upon the release of the new CL.
    No available reliefs. In case existing loan/s is/are under deferment or extension or moratorium, member/borrower cannot avail of Character Loan
    No collateral, No co-maker or guarantor is required.  
  • Medicine/Consumer Loan -  this type of loan is for the purchase of medicine/ groceries and other commodities at our Botica De San Dionisio.
  1. A member-borrower can avail of medicine/ consumer loan simultaneously with different type of loan/s or without present loan (but with previous credit records) provided most recent loan/s or present loan/s is/are updated and has not incurred 20 % past due.
  2. A medicine/consumer loan can be granted to member-borrower, even if most recent loan/s or present loan/s has/have fine/s, provided arrears have not reached 20 % past due.
  3. A member- borrower can be granted a medicine/consumer loan equivalent to 50 % of his/her share capital but not to exceed FIVE THOUSAND ( P5,000.00 ) only.
  4. Term of payment is at a maximum of 10 months.
  5. A Non-MIGS member-borrower can avail of a medicine/ consumer loan equivalent to 70% of 50% of his/share capital but not to exceed THREE THOUSAND FIVE HUNDRED PESOS(P3,500.00) only.
  6. Spouse's consent is optional.
  7. No guarantor/collateral is required and is not subject to any loan charges, except for monthly interest.
  8. No refinancing.
  • Privilege Loan -  this type of loan is for productive purposes only, members who are earning daily (sari-sari store business, jeepney/tricycle driver operator and market vendor)
  1. Members with good credit record/ updated in the payment of existing loan(s).
  2. A privilege loan can be granted to a member-borrower even if most recent loan/s or present loan/s has/have fine/s, provided arrears have not reached 20 % past due.
  3. For productive purposes only.
  4. Only the paid portion of the outstanding loan can be availed of but not to exceed P 15,000.00.
  5. Term of payment is at a maximum of five (5) months and subject to daily payment.
  6. No Refinancing.
  7. No guarantor or collateral required, subject to service fee and social fund loan protection.
  8. Spouse's consent is optional.
  9. A Non-MIGS member-borrower can avail of a privilege loan equivalent to 70 % of the paid portion of his/her outstanding loan but not to exceed P10,500.00.
  • Rice Loan -  this type of loan is intended for rice only.
  1. Members with good credit record/updated in the payment of existing or previous loan(s).
  2. A rice loan can be granted to a member-borrower even if most recent loan/s or present loan/s has/have fine/s, provided arrears have not reached 20 % past due.
  3. Can be availed of by a new member provided his/her share capital is already P 3,750.00.
  4. Maximum of two sacks (100 kilos) per member is allowed.
  5. Only One (1) sack (50 kilos) can be availed of by a Non- MIGS member-borrower.
  6. Terms of payment:
  • Four (4 )mos. to pay for two(2) sacks ( 100 kilos ).
  • Three (3) mos. to pay for 1 ½ sacks ( 75 kilos ).
  • Two (2) mos. to pay for 1 sack of rice (50 kilos ).
  • One (1) mo. To pay for ½ sack (25 kilos ).
  • No service fee and social fund loan protection shall be collected.
  • No guarantor/ collateral required.
  • Spouse's consent is optional.
  • COOP Healthcare Loan -  shall deliver extensive and effective health care services to SDCC members and their dependents at reasonable annual membership fees. This program aims to keep our members healthy, because healthy members translate to a progressive cooperative.
  Implementing Guidelines
A Member/borrower can avail of Coop Healthcare Loan simultaneously with different types of loan or even without existing loan or with newly released loan, provided it has previous credit records equivalent to minimum of three (3) months, and most recent loan/s or present loan/s is/are updated and has not incurred 20% past due, and capacity to pay has been determined thru loan packaging.
 
Can be availed by "Member in Good Standing" only
 
Member's share capital shall be updated upon filing of loan.
Non-MIGS can still avail of the loan, provided the reason of being Non-MIGS is not due to loan criteria
 
Difference in the amount of premium and available loan due to being Non-MIGS will be shouldered by the member-borrower
Coop Healthcare Loan will be posted/treated under Medicine/Consumer Loan  
Amount of loan shall be the total amount of the Coop Healthcare Plan

Coop Healthcare Plans:

Plan 3600 - for members 18 to 65 yrs

Plan 7200 - for members 66 to 70 yrs 

Plan 10,800 - for members 71 to 75 yrs

Plan 14,400 - for members 76 yrs and above.

Term of payment shall be as approved by the Board of Directors Maximum term is ten (10) months.
Coop Healthcare Loan shall be subject to a monthly interest based on diminishing balance as approved by the Board of Directors Monthly interest rate shall be subject to 1.5% based on diminishing balance.
Coop Healthcare Loan shall be within the Debt-to-Income (DTI) Ratio as approved by the Board of Directors. Debt-to-Income (DTI) ratio shall be the maximum rate of 65%, after considering all existing loans, if any.
Coop Healthcare Loan shall bot be subject to service and coop loan protection plan (CLPP)  
No available reliefs.  
No retention to savings and share capital  

Member may opt to automatically renew Coop Healthcare Loan Within thirty (30) days before the Anniversary date of the healthcard.

Member will sign the Conformity and Authority in three (3) copies for automatic renewal.

EOM Group specifically AM Team will check the records before renewal. If qualified, the Coop healthcare Loan will be renewed. if not, the Member Records Administration Officer will notify the member-borrower.

Distribution of Conformity and Authority:

original - member-borrower copy

duplicate - Member Records Administration copy

triplicate - AM Team copy

  • Balik-Eslwela Loan - Ang layunin nito ay upang mabigyan g karagdagang pondo ang isang kasapi na mayroong magandang rekord sa pagbabayad ng utang na siyang makakatulong upang tugunan ang kanilang pangangailangan sa panahon ng pasukan. Ito ay sang-ayon sa mga sumusunod:

      Polisiya at Patakaran

1. Ang layunin o intensyon ng pag-utang ay pambayad ng matrikula, pambili ng gamit sa eskwela tulad ng uniprme, sapatos, mga libro at iba pang gamit pang eskwela. Ang makikinabang ng utang ay maaaring ang kasapi mismo o ang kanyang miyembro ng pamilya hanggang sa ika-3 na antas ng pagkakamag-anak pagkakahawig.

2. Mga kinakailangang dokumento:

  • school registration or school card; at
  • statement of account (for tuition fee payment); at/o
  • listing of books or school supplies; at/o
  • breakdown of other school expenses

3. Ang mauutang ng kasapi ay ang kanyang panimulang credit line (12 months) o hanggang Sampung Libong Piso (P10,000.00) lamang, kung alinman ang mas mababa.

4. Ang pinakamahabang termino ng pagbabayad ay hanggang tatlong (3) buwan lamang.

5. Ang tubo sa utang ay 1.25% kada buwan base sa bumababang balanse  ng utang.

6. Subjext sa umiiral na service at CLPP fee.

7. Kung ang layunin o intensyon ay pambayad ng matikula, ang tseke ay ipapangalan diretso sa paaralan.

8. Pinahihintulutan ang "refinancing" sa pasubali na isang "balik-Eskwela Loan" lamang sa isang pagkakataon.

9. Walang retention sa savings at share capital.

10. Walang kinakailangan kolateral.

11. Ang saping puhunan ng kasapi ay kinakailangan "updated".

12. Ang dept-to-income (DTI) ration ay hanggang 65% lamang.

13. Kinakailangang mayroong labing dalawang (12) buwan ng magandang rekord sa pagbabayad ng utang mula sa kaniyang pinakabagong utang. (Ang kahulugan ng magandang rekord ay mayroong 12 buwanang hulog na walang pagka-antala matapos ikonsidera ang palugit o grace period)

14. Maari pa ring makautang kahit na ang kasapi ay mayroong kasalukuyang utang sa pasubali na "updated" at walang pagka-antala sa buwang hulog.

15. Ang kasaping may kasalukuyang "restructured loan" o ang huling utang ay "restructured" ay hindi pahihintulutang maka-utang ng Balik-eskwela.

16. Ang buwanang hulog para sa "restructured loan" ay hindi ikokonsidera na kabilang sa labing dalawang (12) buwan na magandang rekord.

17. Para sa mga kasapi na NON-MIGS ang katatayuan sa SDCC ang 70% policy ang ipapatupad.

18. Ito ay ipapatupad simula sa Mayo 2013. 

Marami pong salamat sa inyong patuloy na pakikipagtulungan at pagtangkilik.

  • Share Capital Loan - The objective of this loan is to encourage members to update their share capital and to increase the capital of the cooperative.

The Policies and Guidelines on Share Capital Loan

  1. A Member with P 500.00 initial deposit in his/her share capital is qualified to avail of share capital loan.
  2. Member can avail of the maximum amount of P 15,000.00 Share Capital Loan subject to the service fee, social fund loan protection and monthly interest.
  3. Member can avail of Share Capital Loan partially , until such time that the P 15,000.00 paid –up capital is completed. If member has completed the P15,000.00 Share Capital, he/she can no longer avail of Share Capital Loan.
  4. Member can still avail of other kinds of loans, even if with share capital loan or vice-versa, provided he has the capacity to pay and has not reached the 20 % past due in any of his outstanding loans.
  5. Share Capital Loan can be availed of by a new member, even if without credit record yet, provided per CI/BI he/she has the capacity to pay.
  6. Share Capital through share capital loan can only be used as a loan factor proportionate to the paid portion of the loan.
  7. The maximum term to pay the share capital loan is 24 months or 2 years.
  8. Net proceeds of a Share Capital Loan will automatically be deposited to the member’s share capital account and only the official receipt will be released to the member.
  9. A member with share capital loan can enjoy the 5 day-grace period. However, the other reliefs are NOT applicable.
  10. A non- MIGS member is only entitled to 70 % of the loanable amount for Share Capital Loans.
  11. Signature of the spouse is optional.
  12. Failure of member to pay the share capital loan for consecutive months ( consecutive months means 50 % of the term of loan ) would result in termination of membership, after due process. A written undertaking will be signed by the member upon release of the loan to show his conformity. However, if member has an outstanding secured loan, the policy in terminating the membership of those with delinquent secured loans will prevail.

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IV.   TYPES OF RELIEFS:

A. Grace period of five (5) days - a grace period of five (5) days after the installment is due shall be given for loans payable monthly, two (2) days for loans payable semi- monthly and one (1) day for loans payable weekly.

B. Extension of period of payment - the repayment period of a loan may be extended thru a written request of the borrower to the Credit Committee in order to reduce the amount of the monthly amortization.

C. Deferment of payment - a member-borrower may request for a deferment in the payment of his loan for good reasons. However, such deferment shall not be for more than three (3) months, and provided that the interest on the loan for the period of the deferment shall be paid by the borrower.

D. Refinancing of loan - a member- borrower may be granted a refinancing of his loan if at least 50 % of the original amount of the loan has been paid.

E. Restructured loan - a loan can be restructured if the arrears have reached the 20 % past due.

F. Loan moratorium - when the member-borrower or the spouse is the major source of support of the family and a total impairment of the paying capacity occurs during the term of the loan.

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V.   COMPUTATION OF INTEREST & FINES

To view computations of interest & fines click here

 

VI.   MODE/ TYPES OF PAYMENT:

a. Daily collection; needs arrangement to Account Management/ Member Relation Division
b. Monthly
c. Postdated check (PDC)
d. Auto-transfer from savings deposit
e. Fund transfer (thru Banco de Oro)

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BASIC (MUST KNOW) INFORMATION ON CREDIT AND COLLECTION

1. Layunin: Mapautang ang kasapi sa mababang patubo at makatulong sa pangangailangan ng mga kasapi.

2. 6C's of credit granting.

2.1) Character

2.2) Capacity

2.3) Collateral

2.4) Capital

2.5) Condition

2.6) Co-maker / guarantor

3C's of credit granting (Under Acct Mgt)

CAPACITY 55%

COLLATERAL 20%

CHARACTER 25%

3. Batayan ng halagang mauutang

3.1) Uri at layunin ng pag-utang

3.2) Aktuwal na halagang kailangan ng umuutang

3.3) Kakayahan ng kasapi sa pagbabayad ng utang

3.4) Character ng umuutang

3.5) Record ng umuutang sa SDCC at pamayanan

3.6) Collateral

3.7) Aging of Share Capital (New Member)

1 mo to 4 mos - (x2)

4 mos to 6 mos - (x3)

6 mos and above - (x4)

3.8) Co-maker and guarantor

3.9) Partisipasyon ng kasapi sa gawain pang kooperatiba       

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