TO : EXECUTIVE COMMITTEE

THRU : Maria Henrietta C. Dela Peña

Chief Executive Officer

FROM : Jan Dave O. Ogatis

General Manager – CARE Foundation Inc.

DATE : September 07, 2020

SUBJECT :PROPOSAL FOR NEW LOAN PRODUCT – BUSINESS

TRANSPORT LOAN

BUSINESS TRANSPORT LOAN

A. RATIONALE

Most businesses nowadays need their own vehicle for the logistics of their products
from the suppliers and/or to the customers. Having their own vehicle saves freight
and time which enables them to maximize their resources.

Due to the demand of the market in Vehicle Financing, we have created a product
(BUSINESS TRANSPORT LOAN) that would suit their needs.

B. OBJECTIVE

1. To Maximize Loan Disbursement by having wide array of product offerings.

2. To serve current and prospective clients of their vehicle financing need.
3. To Increase the Competitiveness of CARE Loan Products
C. GENERAL GUIDELINES

Eligible Eligible Loan Charges Downpayment Penalty

Borrowers: Projects/Busines & Savings
s Requirement

*Must be *At least one year *Processing fee: *Downpayment 3.5% per
between 21-63 continuous month of
years old business  1.5% of the  At least 30% the past
during the time operation; and approved of the due
of application; loan amount Qouted amortization
Price if (Principal
*Borrower must *Other charges brand new plus
be in good *Engaged in deducted from Interest)
health condition Retailing, Trading, the loan  At least 40%
Manufacturing, proceeds of the
*At least 2 processing and (includes but not Qouted
years residency services. limited to Price if
if homeowner Annottaion Fee, second
Insurance (OD) hand
*5 years if Fee)
“renter”  At least 50%
*Documentary of the
*Borrower must Stamp Tax Qouted
have a Price if
business - (DST): P1.50 surplus
per P200 loan

- Doc stamp = 40
pesos for 1st *Initial Savings
5,000.00 and
additional 20  Minimum of
pesos for each 2.5% of the
5,000.00 or loan
fractional part in amount
excess of 1st
5,000.00
D. PRODUCT FEATURES MATRIX

Product Features BUSINESS TRANSPORT LOAN

Frequency of Payments Monthly
Payment Mode Cash/PDC
Security Requirements Financed Vehicle – Chattel Mortgage
Downpayment 30%/40%/50% of the Qouted Price
Capital-Build Up Initial CBU
- Minimum of 2.5% of loan aount

Php400.00 per month voluntary

savings(withdrawable)
CBU Interest Interest on CBU should be 1% per annum (paid to
accounts) on savings deposit.
Interest Rate Based on the prevailing Loan Matrix
Term Maximum 3 years loan term
Processing Fee Based on the Prevailing Processing Fee Matrix plus
1% Notarial Fee
Loan Insurance Fee Optional: 5 per 1,000 amount of loan
Micro-insurance Optional: Premium depends on number of
enrollees
Qualified dependents:
 Legal Spouse
 Maximum of three children
 Parents (for single clients)
Penalty 3.5% per month of the past due amortization
(Principal plus Interest)

Documentary Stamp Tax Doc Stamp Loan = P1.00 per P200 loan; Doc
stamp Annotation = 40 pesos for 1st 5,000.00 and
additional 20 pesos for each 5,000.00 or fractional
part in excess of 1st 5,000.00

D. DOCUMENTARY REQUIREMENTS

 Loan Application
 Loan Credibility Test (CI/BI Form)
 Business Proposal (Loan Investment Plan)
 Promissory Note
 Purok Residence & Business Certificate
 Barangay Clearance
 Deed of Chattel Mortgage
 Co-maker
 Government ID (Postal, Voter’s ID, Diver’s License, etc.)
F. LOAN TERMS AND PROCESSING FEE

Table A. Loan Term Matrix & Processing Fee

LOAN TERM (IN INTEREST PER
LOAN AMOUNT PROCESSING FEE
MONTHS) MONTH
100,000.00 400,000.00 UP TO 15 MONTHS 2.00%
400,001.00 800,000.00 UP TO 18 MOTNHS 1.80% 2.5% of the approved
800,001.00 1,000,000.00 UP TO 24 MONTHS 1.70% loan amount (inclusive
1,000,001.00 1,500,000.00 UP TO 30 MONTHS 1.60% of 1% notarial fee)
1,500,001.00 UP UP TO 36 MONTHS 1.50%
 If the client chooses to avail of a either a shorter or longer term, the interest
to be applied is based on range of loan amount specified in the table above.

G. PROCEDURES

DO Upon Application

1. Secure copy of Price Quotation from the client.

2. Verify Price Qoutation from the Dealer to ensure that Price
Quatation is not being jacked up by the Dealer in conivance
with the borrower.

Vehicle
3. As much as possible we only finance Brand New Vehicles,
however, if the vehicle to be financed is a reconditioned or
second hand vehicle, the following must be observed:

 We will only finance recon or secondhand vehicles if the

location of the dealer is within the are of operation of CFI.
This is to conduct an inspection of the unit to ensure the
following:

 Takes picture of the vehicle (front, side, rear, and

interiors), engine, chassis, and mileage. – for units
where it is difficult to take pictures, stencils are
required.
 Checks registration of the vehicle and verifies at the
nearest LTO office for encumbrances, alarms,
apprehensions and renewal of registrations.
 Checks engine and chassis number if it coincide
with the CR and stencils.
 Checks the actual condition of unit if it is in running
condition or if engine has oil leakage.
 Test drive the unit accompanied by licensed driver.
 Checks if the body have bump dents and paint
conditions.
 Checks the chassis and under chassis if good.
 Checks the mileage of the unit.
 Check if the OR is renewed.
  If the OR is not renewed require the Dealer through
CREDIT ADVICE to renew OR before releasing the
check.
 Check the name of owner in the CR.
 If the CR/OR of the vehicle is in the name of the
previous owner, require the DEALER through
CREDIT ADVICE to transfer the name of CR/OR in
the name of borrower before releasing the check.

4. After all the necessary procedures were made, submit to DS

and BM for review and submission to approving to authorities.

Upon Loan is Approved

1. Send CREDIT ADVICE (Pls see Annex A) to DEALER

2. Release only the check to DEALER if all conditons stated in the
CREDIT ADVICE are met and all documentary requirements
stated in the CREDIT ADVICE are given by the DEALER.
3. The conditions and documentary requirements that must be
specified in the CREDIT ADVICE are the following but not
limited to:

 Original Sales Invoice addressed to borrower in the amount

of (Php___) bearing with the borrower’s signature.
BM  Original Motor Vehicle Delivery Receipt bearing the
borrower’s signature
 Dealer undertaking to submit LTO CR/OR if under
processing.
 Motor Vehicle OR/CR if possible is best.
 Original 3 LTO stencils from (Motor Vehicle Inspection
Report) and 2 sets in onion skin
 Authorization Letter & Valid ID of authorized representative
if unit will be received other than client.

4. Upon Receipt of all the documents, register the Chattel

Mortgage at ROD.

We are endorsing this proposal for your perusal and suggestions to better facilitate
the current situation the Company is facing. We are hoping for your kind
consideration on this matter.

Sincerely,

JAN DAVE O. OGATIS

General Manager – CARE Foundation Inc.
Recommended by:
PASCUAL DELA CRUZ TEOFILO VEÑIGAS
Group Manager – Legal Group Manager – Human
Resource

ANDREWFER CORDERO JOEL TALAVERO

Group Manager – CPMRD/IAD Group Manager – Finance

Approved by:

MARIA HENRIETTA C. DELA PEÑA

Chief Executive Officer

Annex A – Credit Advice

 Manuel Roxas Avenue cor Jose Burgos St.,
Poblacion, Norala, South Cotabato
Tel No. (083) 234-1107

August 28, 2020

JINYI IMPORT
JP Laurel Avenue,
Davao City

SAMPLE CREDIT ADVICE

Subject : CONFIRMATION OF PURCHASE FOR: SIMBULAN with present

residence address at Sitio Tokuful, Brgy. Poblacion, Lake Sebu, South
Cotabato.

Sir,

Please be informed that CARE Foundation Inc. has approved in favor of JOVEN A.
TABIDAD a Heavy Equipment Loan to finance the purchase of the following unit from
you:
Brand/Make Series Color Year Model
NISSAN NP300 4X2 MT EL ALPINE 2020
NAVARA WHITE

The borrower has authorized CFI to release in your favor the proceeds of the Heavy
Equipment Loan in the principal amount not to exceed PESOS: NINE HUNDRED
SIXTEEN THOUSAND (P 916,000.00)

Disbursement of the Loan shall be made upon CFI receipt of the following documents:
a. Original Sales Invoice addressed to borrower in the amount of (P 1,145,000.00) bearing
with the borrower’s signature.
b. Original Motor Vehicle Delivery Receipt bearing the borrower’s signature
c. Authorization Letter & Valid ID of authorized representative if unit will be received other
than client.
Notes:
1. Freight, Chattel Fee and Insurance (OD) for the account of the borrower.
2. This confirmation of Purchase is valid for 15 days from date of letter.
Should you be amenable to the foregoing. Kindly return to us a copy of this Confirmation of
Purchase with your signature affixed below not later than 15 days from date of letter. Please
fax an advance copy to (083) 234-1107.

Very truly yours,

JUAN DELA CRUZ

______________________
Branch Manager
DEALER

Conforme:

Simbulan
Borrower