LOAN POLICIES AND GUIDELINES
A. Who May File
1. All bonafide members such as those who have paid the membership fee of P50.00, may avail of the loans provided they have:
v paid at least 25% of the subscribed share of capital;
v passed the probationary period of three (3) months from the date of initial share deposit;
v continually paid his/her capital contribution for three (3) months;
2. Member-retirees may avail of loans up to the extent of their capital contributions.
3. All members with outstanding loans, subject to the provisions of the General Appropriations Act on the minimum take home pay of government employees.
B. How to File
The applicant shall:
1. Secure and accomplish a copy of COA EMPC Loan Application Form.
2. Submit duly accomplished COA EMPC Loan Application Form, together with the three (3) latest monthly pay slips and other required documents to the COA EMPC Office located at the Regional Office of the Commission on Audit, Ungka I, Pavia, Iloilo.
C. General Guidelines
1. The rate of interest, unless indicated on the individual loan packages, are as follows:
v For below P50,000, the rate of interest shall be 12% per annum deductible in advance and the loaned amount is payable in 12 equal monthly installments.
v For P50,000 and above, the rate of interest shall be 12% per annum, 1st year interest deductible in advance and the 2nd year interest shall be amortized in 24 equal monthly installments. However, the member-borrower has the option to pay his/her loan in 12 equal monthly installments, the interest deductible in advance.
2. The following loan fees shall be deducted from the loan
v Processing fee
Loans below P20,000.00 - P100.00
P20,000.00 and above - 150.00
v Service Charge of 1% of the loan
v Loan Protection Plan shall be charged at ½ of 1% of the loan.
v Inspection fee (for business loans only)
First 30 kms. - P 50.00
31-50 kms. - 100.00
more than 50 kms. - 150.00
3. Interest on loans is subject to rebate upon full payment one month before the maturity date of the loan. The rebates, however, shall be considered as CBU, unless subscription is fully paid.
4. Any unpaid monthly amortization within the loan term is considered delinquent after the 30 days grace period. A penalty charge of 1% on the overdue installment will be imposed. However, in cases of personnel who are paid under the centralized payroll system, the 2 months delay in the deductions from billing shall be considered. Provided that the total amount of the loan shall be fully paid within the loan term.
5. Any unpaid balance after maturity of the loan shall be charged the following: 1% interest; 1% surcharge and 1% penalty.
6. All loans may be renewed provided 50% thereof has already been paid and provided further that the unpaid balance shall be deducted from the proceeds of the renewed loan.
7. Personal checks are not accepted as payment of loans, other than business loans, loans of member-retiree, Real Estate Loans (REL) and other special loans (SL) that are granted and approved by the BOD.
8. The basis for computation of the loan that can be availed of by the member shall be his monthly net pay after deduction of the P3,000.00 mandatory minimum take-home pay except for Business Loans (BL), REL and SL.
9. For loans other than BL, REL, SL, a machine copy of the latest pay slips of a member covering 3 months shall be required for the determination of the amount of loan to be granted. The pay slips should be duly certified photocopy by an authorized staff of COA Regional Office No. VI.
10. Loan applications of the members of the Credit Committee shall be acted upon by the Board of Directors.
11. Capital contributions of delinquent member-borrowers shall be applied against his account one week after receipt of the final demand letter.( Approved thru General Assembly Resolution)
12. In case of transfer to another agency or resignation, the entire balance of the loan shall become due and demandable. For those who are traveling abroad on personal business and/or on leave without pay, the loan becomes due and demandable, unless assumed by any member of the cooperative as evidenced by a letter of loan assumption.
13. Member-retiree and members assigned outside COA Region VI may only avail of the loan equivalent to their paid-up capital (Loans against Capital). For retiring members with outstanding loan balance, a clearance shall not be issued unless such balance is equal to or less than his/her paid up capital. Letter of assumption with Promissory Note shall be executed by the member assuming the loan.
14. In the event that this obligation is not paid in accordance with the terms and conditions hereof and the COA EMPC is compelled to institute a court action to enforce collection, and, in case of judicial or extrajudicial enforcement of this obligation or any part of it, we waive all their rights under the Provision of Rule 39 Section 12 of the Rules of Courts. We further agree to pay solidarily the costs of the suit, the venue of which shall be any competent court in Iloilo City.
D. Types of Loans
Regular Loans
1. Salary Loan – in an amount not to exceed to three (3) months salary of member-borrower.
v Maximum Term
Below P50,000.00 - payable in 12 equal monthly installments.
P50,000.00 and above- payable in 24 equal monthly installments or at the option of the member-borrower.
2. Appliance Loan - in an amount not to exceed to three (3) months salary of member-borrower.
v Maximum Term – same as Salary Loan.
3. Educational Loan – in an amount not exceeding P20,000.00
Terms and Conditions
v Must be supported by a school assessment or registration form
v Payable in 12 equal monthly installments at 1% interest per month.
v Official receipt can be submitted later.
4. RATA Loan – extended to State Auditors IV and above who have fixed RATA
Terms and Conditions
v Maximum loanable amount is equivalent to 12 months RATA;
v RATA loan shall be payable as follows:
a. 6 months RATA Loan - payable within 12 monthly equal installments
b. 12 months RATA Loan - payable within 24 monthly equal installments;
v Interest shall be at 12% per annum. First year interest shall be deductible in advance and second year interest shall be amortized within 24 months.
v Members with past due and/or delinquent accounts can avail of this loan provided that the amount of past due and delinquent accounts shall be deducted from the RATA loan proceeds.
v Must attached certification from the COA Regional Accountant that RATA was not yet pledged to other lending institution.
1. ATM Loan
Terms and Conditions
v Maximum loanable amount is equivalent to P36,000.00.
v Must surrender his/her ATM card with PIN to the cashier of the COA-EMPC
v Maximum term shall be for 1 year.
v Members with past due and/or delinquent accounts can avail of this loan provided that the amount of past due and/or delinquent accounts shall be deducted from the ATM loan proceeds
2. Business Loan
Terms and Conditions
v Maximum loanable amount is P150,000.00 at 12% interest per annum and .payable in 36 equal monthly installment or 3 years thru payroll deduction or issuance of post-dated checks.
v Must be supported with a collateral: Chattel, HVC or REM (Real estate shall be within the urban area).
v Submission of business permit for capitalization of P50,001.00 & above is required.
v Project Feasibility Study/Financial Statements maybe required.
v Inspection and assessment of collaterals by appraisal committee is required.
3. Bonus Loan
Terms and Conditions
v Loans shall be deducted from the bonus payable on May and November thru payroll deduction.
v Submission of application for loans shall be within the following period:
a. For May bonus- submission shall be between January 1 to March 15 for Central Office payroll and January 1 to March 31 for Regional payroll;
b. For November bonus- submission shall be between July 1 to September 15 for Central Office payroll and July 1 to September 30 for Regional Payroll.
v Interest shall be at 12% per annum deductible in advance.
4. Real Estate Loan
Terms and Conditions
v The loan is payable in ten years. However, the member is given the option to fix the repayment period provided it does not exceed ten (10) years.
v The borrower shall not be over sixty (60) years of age upon maturity of the loan.
v Interest rate is at 18% per annum computed based on diminishing balance.
v The borrower shall provide sufficient security and/or collateral for the loan applied for which shall include but not limited to, a Real Estate Mortgage (REM), assignment of proceeds of insurance policies, JSS of Spouse (if married) and post-dated checks.
v The borrower shall pay a non-refundable appraisal fee of P1,000.00 per property appraised.
v The borrower shall pay a non-refundable processing fee of P750.00.
v Inspection fee of
¯ P300.00 for property located within Iloilo CIty.
¯ P400.00 plus actual transportation expenses for property located outside Iloilo City.
v Mortgage Administration Fee (MAF) of 2% of the approved loan regardless of the amount of loan to be amortized over the term of the loan.
v MRI and Fire Insurance shall be charged a 12% interest rate and shall form part of the monthly amortization over the term of the loan.
v Other expenses such as registration, notarial and documentation fees and taxes pertinent to the sale and transfer of the property shall be for the account of the borrower.
v The borrower shall likewise submit such other documents required by the Credit Committee to facilitate the evaluation of the loan application.
5. Consumers Loan
Terms and Conditions
v Loans will be payable within a month
v Service charge of 1% shall be added on
v Maximum amount that can be availed of is 200% of share capital
v Each member shall contribute a minimum of 1 share @ P500.00/share
v Goods procured are not subject to interest
6. Loans against Time Deposit (TD)
Terms and Conditions
v Can avail up to 95% of the total time deposit
v Interest rate is 3% higher than TD rate + service charge
v Term- maximum of 2 years
v Pre-termination shall be granted provided interest earned will be based on the average prevailing savings deposit rates
v TD rate shall be equivalent to the average prevailing bank rates
v TD term must be at least 3 months
v No withholding tax
7. MEGA Loan
Terms and Conditions
v Maximum loanable amount is ten (10) months salary, payable in 60 equal monthly installments.
v Interest rate is at 18% per annum computed based on diminishing balance.
v Past due and delinquent accounts on all loans shall be deducted from the loan proceeds.
v Loan balances on salary, appliance and other loans can be deducted from the loan proceeds at the option of the borrower.
v Loan is renewable upon payment of 30 monthly installments or payment of 50%.
v Payments shall be made thru payroll deduction from the Regional/Central paid employees.
v This loan package is only available to Members below 60 years of age.
v Members belonging to Class A, B, C shall be given priority for the availment of the loan.
Special Loans
1. Emergency Loans -
Terms and Conditions
v Limited to the following cases
- for hospitalization or death of a member of the immediate family
- for members affected by fire, flood & other natural calamities
- other cases as determined by the Manager or Chairman of the BOD
v Maximum loanable amount of P30,000.00 within a year and shall be payable in 12 equal monthly installments.
v Basis shall be the member’s capacity to pay
v Presentation of proof of hospitalization, death certificate and certification of the other member of the coop that the applicant is a victim of natural calamities.
