A loan facility designed to help members pay off their existing financial obligations from other financial institutions or individual creditors (e.g., Sangla ATM cases) with higher interest rates.
Interest & Term
Below are the Nominal Interest Rates per term as of June 1, 2024, approved by the Board of Trustees. Interest is computed based on the diminishing balance of the loan.
Effective interest rate (EIR) is the actual interest rate the borrower pays on the loan after taking into account fees/charges (e.g. documentary fee, filing fee, etc.) incidental to the loan availment.
| Term (Months) | Nominal Interest Rate (Per Annum) | Effective Interest Rate (EIR)* |
| 12 | 4.50% | 6.61% |
| 24 | 5.25% | 6.44% |
| 36 | 6.50% | 7.43% |
| 48 | 7.25% | 8.06% |
| 60 | 7.25% | 7.96% |
*Assumed Loan Amount is P100,000.00
Loan Amount
Up to the extent of the outstanding loan balance with the financial institution, lending company, or informal creditor concerned, duly supported by a Statement of Account/Notarized Affidavit of Indebtedness, as applicable, subject to Single Borrower’s Limit (SBL) and Take-Home-Pay (THP) policy of the borrower’s corporate member.
Requirements
- Proof of source of income (e.g., latest one (1) month pay slip, pension pay slip, etc.)
- Any government-issued ID
- Accomplished loan application form duly endorsed by authorized signatory of corporate member
- Statement of Account reflecting the total outstanding obligation from the financial institution or lending company or individual creditors, formal or informal; or
- Notarized Affidavit of Indebtedness (in case of individual creditors)
Loan Proceeds
The loan proceeds shall be used for partial or full settlement of obligations and shall be payable under the name of the creditor. The Association shall maintain a copy of the official or acknowledgment receipt as proof of partial/full settlement of the obligation.
