LOAN FACILITY


The Cooperative has recently started a Loan Facility for its members. Members who have fully paid the minimum number of subscribed shares for at least 3 months, or in good standing, are eligible to use this facility. Members may borrow cash in times of need – for hospital bills, tuition fees, recreational needs, financial obligations, entrepreneurial purposes, etc.


Loan Facility and Lending Policies


Rationale

1. The purpose of creating lending facility is to maximize the benefits of the cooperative's functions for its regular members to enjoy and to serve as a guide in the administration of savings, capital and loan operations.

  1. 2.The other purpose is to encourage the support staff to be associate members that will qualify them to avail of some of the benefits that the regular members are enjoying


Borrowing


Who may borrow?

1. Regular members who have fully paid the minimum number of subscribed shares for at least three (3) months or members in good standing as defined in the by-laws are qualified to borrow.

2. Support staff who have been employed for at least one (1) year and in good standing are qualified to borrow.


Types of Loan


The lending facilities of the cooperative are available for either providential or productive loans as defined hereunder.


1. Providential Loan - is a Loan availed of by a member for his/her family's domestic needs including expenses for:

  1. • Hospital, medical and dental bills

  2. • Funeral services

  3. • Tuition fees or educational expenses

  4. • Taxes and financial obligations

  5. • Food, clothing and shelter, and

  6. • Recreational needs.


Limitations

1. For regular members who have patronized the cooperative's services for three (3) years, the amount of loan to be granted could be two times his/her paid-up capital shares, otherwise, the maximum amount of loan a member could borrow shall be equivalent to his paid-up capital shares or Forty Thousand Pesos (P40,000.00), whichever is lower.

2. For the support staff who has been employed for at least one (1) year and with good standing, the amount of loan to be granted could be equivalent to his/her two (2) month's salary.

3. Credit investigation of the borrowing member and/or support staff shall be done prior to the granting of the loan.


Charges on Loans

1.  The cooperative shall collect service fees in the amount not exceeding three (3%) percent of the total loan approved. For Loans which shall be paid on due date, the borrower shall get one (1%) percent rebate on his/her total loan upon full payment of loan.

2.  Loans granted shall earn interest at the rate of Fifteen (15%) percent per annum for members and Eighteen (18%) percent per annum for the support staff.


Terms of Payment

1. For the Support Staff, the maximum terms of payment of loan shall be paid in six (6) months. Loans shall be paid in twelve (12) semi-monthly installments.

2. For Regular Members, the maximum terms of payment of loan shall be paid in twelve (12) months. Loans shall be paid in twelve (12) monthly installments.

3. Collection of loan payment shall start thirty (30) days after receipt of loans as arranged on monthly installment; while for semi-monthly installments, it shall start fifteen (15) days after receiving the loan.


Security of Loan

1.  Providential Loans shall be secured by the borrowing member and his/her co-maker/guarantor in the form of Share Capital, Savings, Deposit and Time Deposit provided that the combined amount of Share Capital, Savings Deposit and Time Deposit is sufficient to cover the amount of loan applied for.

2.  Provident Loans granted to support staff should be secured through his/her monthly salary.


Penalty on Loan

1. Installments due either semi-monthly or monthly which remain unpaid after a grace period of seven (7) days shall carry a penalty charge of two (2%) percent per month on the unpaid installment due.

2. Loans which remain unpaid after maturity date shall be charged against the borrowing members' Share Capital and Savings and Time deposits. Should the amount of unpaid loans exceed the  combined Share Capital and Savings and Time deposits, the cooperative may terminate the borrower's membership. However, the borrowing member should be given thirty days to explain why he/she should not be terminated.


Restructuring of Loan

1.  A member may apply for a restructuring of loan after having paid one-half (1/2) of the original amount.


Approval of Loan

All loan applications shall be verified and evaluated by the Credit Committee for action indicating thereof the result of the credit evaluation.

This Credit Policy shall be the basis for approving/disapproving loan application. The decision of the Credit Committee shall be final, however, the borrower may appeal to the Board of Directors for review.


Release of Loan Checks

Checks shall be released to the borrower on first-come-first-served basis, subject to the availability of funds.

Productive Loans - are loans availed of by the members for entrepreneurial  purposes or as additional sources of income.


Limitations

1. For regular members who have patronized the cooperative's services for three (3) years, the amount of loan to be granted could be four times his/her paid-up capital shares, otherwise, the maximum amount of loan a  member could borrow shall be equivalent to his paid-up capital shares or Eight Thousand (P8,000.00) Pesos, whichever is lower.

2. For the support staff who has been employed for at least one (1) year and with good standing, the amount of loan to be granted could be equivalent to his/her four (4) month's salary.

3. Credit investigation of the borrowing member and/or support staff shall be done prior to the granting of the loan.


Charges on Loans

The cooperative shall collect service fees of not exceeding five (5%) percent of the total loan approved. For loans which shall be paid on due date by the borrower shall get one (1%) percent rebate on his/her total loan upon full payment of loan.

Loans granted shall earn interest at the rate of Eighteen (18%) percent per annum for members and Twenty Four (24%) percent per annum for the support staff.


Terms of Payment

1. For the Support Staff, the maximum terms of payment of loan shall be paid in Twelve (12) months. Loans shall be paid in Twenty Four (24) semi-monthly installments.

2. For Regular Members, the maximum terms of payment of loan shall be paid in Eighteen (18) months. Loans shall be paid in Eighteen (18) monthly installments.

3. Collection of loan payment shall start thirty (30) days after receipt of loans as arranged on monthly installment; while for semi-monthly installments, it shall start fifteen (15) days after receiving the loan.


Security of Loan

1. Providential Loans shall be secured by the borrowing member and his/her co-maker/guarantor in the form of Share Capital, Savings Deposit and Time Deposit provided that the combined amount of Share Capital, Savings Deposit and Time Deposit is sufficient to cover the amount of loan applied for.

2. Provident Loans granted to support staff should be secured through his/her monthly salary.

Penalty on Loan

1. Installments due either semi-monthly or monthly which remain unpaid after a grace period of seven (7) days shall carry a penalty charge of two (2%) percent per month on the unpaid installment due.

2. Loans which remain unpaid after maturity date shall be charged against the borrowing members' Share Capital and Savings and Time deposits. Should the amount of unpaid loans exceed the combined Share Capital and Savings and Time deposits, the cooperative may terminate the borrower's membership. However, the borrowing member should be given thirty days to explain why he/she should not be terminated.


Restructuring of Loan

A member may apply for a restructuring of loan after having paid one-half (1/2) of the original amount.


Approval of Loan

All loan applications shall be verified and evaluated by the Credit Committee for action indicating thereof the result of the credit evaluation.

This Credit Policy shall be the basis for approving/disapproving loan application. The decision of the Credit Committee shall be final, however, the borrower may appeal to the Board of Directors for review.


Release of Loan Checks

Checks shall be released to the borrower on first-come-first-served basis, subject to the availability of funds.


Prohibition

A member may be a co-maker of not more than one (1) borrower at a time. The Board of Directors shall act upon loans applied for by the Credit Committee members.


Effectivity

This lending facility and the policies thereof shall take effect upon approval by the Board of Directors in a special or regular meeting called for the purpose.


For more inquiries on the Loan Facility and Lending Policies, please contact our Jackie at 740-7728

ABOUT PDDC


PROJECTS OF PDDC


  1. Pediatric Dentistry Center Philippines


  3. Ang Ko-op Dental Store


  5. St. Maurice Hunger Program


  7. Loan Facility


KNOW THE BENEFITS OF A PDDC MEMBER! Be a member now!


For inquiries, please call Ms. Cynthia at (632) 740.7728



BOARD OF DIRECTORS


Dr. Georgia R. Remulla

Chairman


Dr. Fina G. Lopez

Vice Chairman


Dr. Mina Bautista

Dr. Janina Tayag

Dr. Joni Ann Jo


OFFICERS


Dr. Baifatima Gania

Secretary


Dr. Fenella G. Galvan

Treasurer