FICCOPMS

3RD TOPIC

FICCOLOAN

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 P500;

5. Enrolled with FICCO-MBA; 6. Completed 4-month

probationary period.

Basis in granting loans

1. Character & Capacity to pay;2. Classification as a member;3. Capital share & savings

deposits;4. Condition;5. Collateral

Membership Classification•CLASS “A1+”•CLASS “A1”•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 A1+

For Regular LoanSavings 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 & HaloSavings is more than 40% of Encumbered Deposit x 400%Savings between 20 to 39% of Encumbered Deposit x 350% Savings is less than 20% of Encumbered Deposit x 300%

Loan multiple

Class A1

For Regular LoanSavings 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 & HaloSavings is more than 40% of Encumbered Deposit x 350%Savings between 20 to 39% of Encumbered Deposit x 325% Savings is less than 20% of Encumbered Deposit x 290%

Loan multiple

Class A

For Regular LoanSavings 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 & HaloSavings 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 x 275%

Loan multiple

Class B Total share x 190%Total savings x 210%

Class C Total share x 165%Total savings x 185%

Class D Total share & Savings x 150%

Class E Total share & Savings x 100%

Interest on Loan & Service Fees excluding Agricultural Loans;

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 Payment

Interest Service Fee

Rice & Corn Production

6 months Lump Sum

6.50% for 6 months

2.00%

Sugar Cane 15 months Lump Sum

13.0% p.a. 5.00%

Cassava 12 months Lump Sum

13.0% p.a. 5.00%

Others Crops 12 months Every 6 months

13.0% p.a. 5.00%

Aqua Culture 6 months Lump Sum

6.50% p.a. 2.00%

Equity for MVLVehicle Equit

y for Class A1+/A1

Equity for Class A

Equity for Class B-reloan

Max. Term

Loan Value

Brand New

20% 25% 30% 96 mos.

100%

Surplus 25% 30% 35% 48 mos.

80%

2nd hand 25% 30% 35% 48 mos.

75%

Types of Loans

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 Regular Loans

1. Productive Loans (RL-Prod)2. Provident Loans (RL-Prod)

Business Related loans3. Small Enterprise Assistance Loan (SEAL)4. Commercial Credit Line (CCL)5. Vendors & Drivers’ Assistance Loan6. Repackaged Special Business Loan(RSBL)

TYPES OF LOANS

Regular Agricultural Loan (RAL)7. Rice & Corn Crop Loan8. Cassava Crop Loan9. Sugar Cane Crop Loan10.Other Crop Loan11.Agricultural Land Purchase Loan12.Aqua Culture Loan13.Livestock (Swine Raising) Loan

TYPES OF LOANS Housing Related Loans

14. Housing Loan Assistance (HALO)15. House Construction Loans (HCL)

Financing Loans16. Motor Vehicle Loan (MVL)17. Motor Cycle Loan (MCL)18. Appliance Loan (APL)19. Cell Phone Loan (CPL)

TYPES OF LOANS Medical Related Loans

20. Medical Loan21. Medicine Loan22. Optical Loan23. Dental Loan

Travel & Tour Packages24. Travel & Tour Loan25.Special Travel & Tour Loan

TYPES OF LOANS Commodity Loans

26. Rice Loan27.Gift Check Loans;

SM GAISANO ORORAMA Other accredited stores

TYPES OF LOANS Other Loans

28. Petty Cash Loan29. Calamity Loan30. Jewelry Loan31. Salary Loan32. Memorial Services Loan33. Educational Loan

TYPES OF LOANSLoan Against Deposits

34. Loan Against Deposits35. Loan Against Time Deposits36. Loan Against Retirement Savings37. Loan Against Installment Savings

Maximum loan ceiling

First time borrower;• P 50K – Share/Savings• P 51K to P100K – Chattel Mortgage• P101K to P 2.0M – Real Estate

Mortgage

Maximum loan ceiling

Class “B” re-loan;• Up to P 60K – no collateral• P 61K to P200K – Chattel Mortgage• P201K to P 2M – Real Estate Mortgage

Maximum loan ceiling

•Re-loans:▫Class “A1+” & “A1” & “A”;

P 60K & below – no collateral with 1 co-maker

P 61K to P 500K– Chattel mortgage on HVC P 501K to P 2M – Real Estate Mortgage

Maximum loan ceiling

•For Class A1 & A1+▫P 2.5 million – if providential▫P 5.0 million – if productive

Loan Requirements:

Co-makersUtility billsProof of source of incomeResidence Certificate- Current year

Loan Requirements:For Chattel Mortgage:

Certificate of ownership/ Affidavit of ownership or O.R. & CR for motor vehicles

For 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 P3,000 &

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 “A1+”, “A1” & “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 “A1” , “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.

DelinquencyNotices & Demand Letters

No. of missed Payment

Type of Notice/Action to be taken

Remarks

1 month Collection Notice1 step classification downgrade

2 months 1st Demand Letter3 steps classification downgrade

3 months Final Demand LetterLodging to Past Due

4 or more months

Attorney’s Demand Letter

Account is Turned over to the Legal Department

Delinquency

•Fines of 3% per month of amortization until the 3rd month of the delinquency.

•3% of the entire loan balance is collected starting on the 4th 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.

END