FICCO PMS RD 3 TOPIC FICCO LOAN SERVICES

FICCO PMS RD 3 TOPIC

FICCO LOAN SERVICES

Who will qualify for a loan? 1. Completed the prescribed ½ day Pre-membership Seminar (PMS); 2. Good character with visible source of income; 3. Share Capital of at least 3, 000 pesos;

Who will qualify for a loan? 4. Average monthly Savings balance of at least P 500; 5. Enrolled with FICCO-MBA; 6. Completed 4 -month probationary period.

Basis in granting loans 1. 2. 3. 4. 5. Character & Capacity to pay; Classification as a member; Capital share & savings deposits; Condition; Collateral

Membership Classification • • CLASS “A 1+” CLASS “A 1” CLASS “A” CLASS “B” – RELOAN CLASS “B” – FTTB CLASS “C” CLASS “D” CLASS “E” 8 membership classifications determined by member’s Character & Capacity to pay. Guides management and Credit Committee to decide how much loan one member may avail!

Loan multiple Class A 1+ For Regular Loan Savings is more than 60% of Encumbered Deposit x 400% Savings is between 45 to 59% of Encumbered Deposit x 350% Savings is less than 45% of Encumbered Deposit x 300% For Seal & Halo Savings is more than 40% of Encumbered Deposit x 400% Savings between 20 to 39% of Encumbered Deposit

Loan multiple Class A 1 For Regular Loan Savings is more than 60% of Encumbered Deposit x 350% Savings is between 45 to 59% of Encumbered Deposit x 325% Savings is less than 45% of Encumbered Deposit x 290% For Seal & Halo Savings is more than 40% of Encumbered Deposit x 350% Savings between 20 to 39% of Encumbered Deposit

Loan multiple Class A For Regular Loan Savings is more than 50% of Encumbered Deposit x 325% Savings is between 40 to 49% of Encumbered Deposit x 300% Savings is less than 40% of Encumbered Deposit x 275% For Seal & Halo Savings is more than 40% of Encumbered Deposit x 325% Savings between 20 to 39% of Encumbered Deposit x 300% Savings is less than 20% of Encumbered Deposit

Loan multiple Class B Total share Total savings x x 190% 210% Class C Total share Total savings x x 165% 185% Class D Class E Total share & Savings x 150% Total share & Savings x 100%

Interest Loans; on Loan & Service Fees excluding Agricultural Loan Term Interest Service Fees Less than 1 year 8. 0% p. a. 1. 00% for the whole term 12 months 8. 0% p. a. 1. 75% for the whole term 13 to 24 months 8. 5%p. a. 2. 25% for the whole term 25 to 36 months 9. 0% p. a. 2. 75% for the whole term 37 to 48 months 9. 5%p. a 4. 50% for the whole term 49 to 60 months 10. 0% p. a. 5. 50% for the whole term

Interest on Loan & Service Fees for Agri. - Loans Crop type Term (Max) Mode of Interest Service Paymen Fee t Rice & Corn 6 months Lump 6. 50% for 6 2. 00% Production Sum months Sugar Cane 15 months Cassava 12 months Lump Sum 13. 0% p. a. 5. 00% Others Crops 12 months Every 6 13. 0% p. a. months 5. 00% Aqua 6 months Lump 6. 50% p. a. 2. 00%

Equity for MVL Vehicle Equity for Class A 1+/A 1 20% Equity Max. for Term Class A Class Breloan 25% 30% 96 mos. 100% Surplus 25% 30% 35% 48 mos. 80% 2 nd hand 25% 30% 35% 48 mos. 75% Brand New Loan Value

Types of Loans are designed to cater to the needs and wants of the members. FICCO is encouraging its members to avail more productive loans! Economic activities are increased!

TYPES OF LOANS ü Regular Loans 1. Productive Loans (RL-Prod) 2. Provident Loans (RL-Prod) ü Business Related loans 3. 4. 5. 6. Small Enterprise Assistance Loan (SEAL) Commercial Credit Line (CCL) Vendors & Drivers’ Assistance Loan Repackaged Special Business Loan(RSBL)

TYPES OF LOANS ü Regular Agricultural Loan (RAL) 7. Rice & Corn Crop Loan 8. Cassava Crop Loan 9. Sugar Cane Crop Loan 10. Other Crop Loan 11. Agricultural Land Purchase Loan 12. Aqua Culture Loan 13. Livestock (Swine Raising)

TYPES OF LOANS ü Housing Related Loans 14. Housing Loan Assistance (HALO) 15. House Construction Loans (HCL) ü Financing Loans 16. Motor Vehicle Loan (MVL) 17. Motor Cycle Loan (MCL) 18. Appliance Loan (APL) 19. Cell Phone Loan (CPL)

TYPES OF LOANS ü Medical Related Loans 20. Medical Loan 21. Medicine Loan 22. Optical Loan 23. Dental Loan ü Travel & Tour Packages 24. Travel & Tour Loan 25. Special Travel & Tour Loan

TYPES OF LOANS ü Commodity Loans 26. Rice Loan 27. Gift Check Loans; � � SM GAISANO ORORAMA Other accredited stores

TYPES OF LOANS ü Other Loans 28. Petty Cash Loan 29. Calamity Loan 30. Jewelry Loan 31. Salary Loan 32. Memorial Services Loan 33. Educational Loan

TYPES OF LOANS ü Loan Against Deposits 34. Loan Against Deposits 35. Loan Against Time Deposits 36. Loan Against Retirement Savings 37. Loan Against Installment Savings

Maximum loan ceiling § First time borrower; • P 50 K – Share/Savings • P 51 K to P 100 K – Chattel Mortgage • P 101 K to P 2. 0 M – Real Estate Mortgage

Maximum loan ceiling § Class “B” re-loan; • Up to P 60 K – no collateral • P 61 K to P 200 K – Chattel Mortgage • P 201 K to P 2 M – Real Estate Mortgage

Maximum loan ceiling • Re-loans: ▫ Class “A 1+” & “A 1” & “A”; �P 60 K & below – no collateral with 1 comaker �P 61 K to P 500 K– Chattel mortgage on HVC �P 501 K to P 2 M – Real Estate Mortgage

Maximum loan ceiling • For Class A 1 & A 1+ ▫ P 2. 5 million – if providential ▫ P 5. 0 million – if productive

Loan Requirements: üCo-makers üUtility bills üProof of source of income üResidence Certificate- Current year

Loan Requirements: üFor Chattel Mortgage: § Certificate of ownership/ Affidavit of ownership or O. R. & CR for motor vehicles üFor Real Estate Mortgage: § Original Title, Tax Clearance, Tax Declaration, Sketch Plan, Vicinity Map, Certificate of non-tenancy for agri-land, SPA if the loaner is not the owner

Who will qualify as co-makers? § Members with; § Share Capital of P 3, 000 & Savings of P 500 § Four months or more as members § Whose accounts not delinquent § Members with Restructured loans are also prohibited from signing as co-makers.

Who will qualify as co-makers? § Class “A 1+”, “A 1” & “A” Members are allowed to sign up to three borrowers § Class “B” & below are allowed to sign up to two other borrowers.

“Bundak” Deposit RULE § Any deposit above 10% of existing Share/Savings to cover deficiency in the requirement is “Bundak” deposit. § “Bundak” deposits are not included in the member’s partial loan release. § Class “B- FTTB”, “C”, “D” & “E” members who will make “Bundak” deposits will have to wait for 45 days before their loans are released. § Class “A 1” , “A” & “B Re-loan” are exempted from “Bundak” deposit rule.

Encumbered Deposits § Deposits used as equity to a loan are called “Encumbered Deposits” § Non- withdrawable until the loan is fully paid. § Encumbered deposit for LAD is based on the loan balance § RS/IS deposits can now be used as encumbrance to loans!

When are loan accounts considered delinquent? § When Loan accounts are paid after the agreed Due Date. § When Loan Payment is lower than the agreed Amortization.

Delinquency Notices & Demand Letters No. of missed Payment Type of Notice/Action to be taken Remarks 1 month Collection Notice 1 step classification downgrade 2 months 1 st Demand Letter 3 steps classification downgrade 3 months Final Demand Letter Lodging to Past Due 4 or more months Account is Turned over to the Legal Attorney’s Demand Letter Department

Delinquency • Fines of 3% per month of amortization until the 3 rd month of the delinquency. • 3% of the entire loan balance is collected starting on the 4 th month of the delinquency.

“Grace Period” • A period of time in which someone is late with a payment, but penalties are not incurred. • Members are given 3 days before fines are computed • Amortization is still past due & classification is reduced.

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