LAGUNA PRIME MULTIPURPOSE COOPERATIVE

LOAN POLICIES AND GUIDELINES

(Approved 1660th BOD Meeting, February 24, 2021; BOD Res. No. 1660-1 s. 2021)

IMPLEMENTING GUIDELINES ON THE MEMBERS’ AVAILMENT OF LOAN PRIVILEGES OF

THE LAGUNA PRIME MULTIPURPOSE COOPERATIVE (LPMPC)

a. OBJECTIVES

(1) To provide loan(s) based on the needs of the members and inculcate the wise use of financial
resources; and
(2) To safeguard the funds of the cooperative and lessen the risk in providing non-collaterized
loan.

b. LOAN ELIGIBILITY

(1) A member is qualified to loan three (3) months after (acceptance as) member with a minimum
of ₱10,000 paid-up share capital with updated share capital contribution.

(2) A member is qualified to avail of any or a combination of the Salary Loan (SL), Business Loan
(BL) or Real Estate Loan (REL) after one (1) year of being a member as follows:

(a) for members whose share capital is less than ₱35,000, any of the SL, BL or
REL; and
(b) for members with ₱35,000 and above share capital contribution,
combination of SL, BL, Hospital Loan, and REL.

(3) Collateralized SL, BL, REL can be availed by the member as supported by documents, verified
and evaluated as required in the existing specific loan guidelines.

c. GENERAL IMPLEMENTING RULES AND REGULATIONS ON THE AVAILMENT OF LOANS

(1) All loans shall be approved by the Credit and Collection Committee; however, for check and
balance, loans of the members of the Credit and Collection Committee and the Manager shall
be approved by at least two members of the Board of Directors. Loans of Officers and Staff of
the Cooperative shall be subject to pre-audit by the Audit Committee. Loans of the members of
the Audit Committee shall be pre-audited by the Internal Audit Section.

(2) Guarantee or Collateral:

a. Share Capital of up to 85% can be used as collateral for the LOANABLE AMOUNT (loan
principal + interest). The remaining 15% of Share Capital shall be allotted for credit
purchase in the Kasambili Consumer Store. The Share Capital contribution of a member can
only be used as collateral for one type of loan. If the member has a history of cash
purchases in the Kasambili Consumer Store, the 15% can be waived and included in the
loan computation,
b. A member can avail of other types of loans as long as a secured collateral is presented
(example: lot title in the name of the member, OR/CR of vehicle).
c. For a member to avail of other loans with no collateral, the policy on co-maker shall be
followed.

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 d. In all of the above, the capacity to pay of the member shall be considered. (In case when
capacity to pay is not reflected in the pay slip - PROOF OF CAPACITY TO PAY/SOURCE/S
OF OTHER INCOME SHOULD BE ESTABLISHED and PROVEN.

(3) A 2% fine shall be imposed monthly on all loans if not paid after the specified maturity plus 10
days grace period from due date.

(4) Members are required to attend a Loaning/Ownership Seminar before the release of loan. The
seminar is valid for two (2) years. Members with default in the payments of loans shall undergo
counseling by the Credit and Collection Committee (CCC).

(5) All loans shall be covered by Loan Payment Protection Insurance (LPPI) except Emergency and
Hospitalization Loans.

(6) There will be an allocated amount for each loan type based in the budget for the year.

(7) The policy guidelines including interest rates shall be subject for review by the Credit and
Collection Committee every six months or as may be needed. All amendments in the guidelines
shall be confirmed by the Board of Directors and supported by a corresponding Board
Resolution.

d. COVERAGE

Any other type of loan provided by the LPMPC not included in the above loan eligibility shall
be implemented under its specific loan guideline.

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 EMERGENCY LOAN (EmL) GUIDELINES
(Consolidated Petty Cash Loan)

I. OBJECTIVE

1. To provide financial assistance to members for emergency purposes.

2. To convert existing Petty Cash Loan to Emergency Loan

II. CRITERIA FOR ELIGIBILITY

1. The applicant must be a regular member for at least three (3) months;
2. Has a minimum of ₱10,000.00 paid-up share capital and updated share capital contribution.

III. LOAN FEATURES

(a) Loan Principal: Maximum of ₱15,000.00

(b) Terms of payment: Maximum of twelve (12) months to be amortized monthly

(c) Service Fee: 1% to be deducted in advance

(d) Renewal: Renewable every three (3) months (follow through

collection scheme)

(e) Interest: 1.0% per month, add-on, diminishing balance

(f) Retention: No retention fee

(g) Processing Period: One (1) day after submission of the application form

(h) Approval: One (1) member of the Credit and Collection Committee

(i) Manner of Payment: Personal payment with option for Salary Deduction

IV. OTHER CONDITIONS

For those with existing loans, they shall be allowed to avail of this loan provided:

i. The existing loans are secured with co-makers or collaterals.

ii. If the existing salary/regular loan amount availed is equal to the share capital with
no co-maker, the member shall be allowed to use the difference of the Share Capital
and the loan balance.

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 HOSPITALIZATION LOAN GUIDELINES

I. OBJECTIVE

To provide financial assistance for medical services/hospitalization of a LPMPC regular

member and members of his/her immediate family. For married members: parent/s, spouse and
children. For single members: parent/s and siblings.

II. CRITERIA FOR ELIGIBILITY

The applicant must be a member in good standing for at least three (3) months.

III. LOAN FEATURES

(1) Loan may be availed on top of the existing loans of a member.

(2) The maximum amount of the loan principal shall be Twenty-Four Thousand Pesos (₱24,000.00)
based on the following:

(a) In patient – actual cost of hospitalization including professional fees and medicines
supported by receipts or billed by the hospital where the patient was confined.

(b) Out-patient – actual cost of medical services of attending physician including

medicines duly supported by prescription and official receipts.

(3) Interest rate shall be 1.0% per month, add on.

(4) Service fee shall be 1.0% to be deducted in advance.

(5) Repayment period shall be for a maximum of twenty-four (24) months and payment shall start
one (1) month after the full release of the loan.

(6) A partial release of Five Thousand Pesos (₱5,000.00) may be released by the Manager upon
presentation of the medical certificate/advice of attending physician/hospital and doctor
prescriptions. The loan balance shall be released upon confirmation of the Credit and
Collection Committee.
Receipts for hospitalization/medical expenses covered by the partial release shall be submitted
within fifteen (15) days; otherwise, the loan shall be considered as released in full and shall be
payable within twelve (12) months only.
(7) The loan may be renewed, provided the loan does not exceed ₱24,000.00 and thirty percent
(30%) of the previous loan has been paid.

(8) If the amount of the hospital bills shall be more than the maximum loan that can be availed of
by a member, another immediate family member who is a member of the cooperative may
also avail of the same loan privilege to cover the difference.

(9) This loan may be availed of even after hospitalization or medical services have been made
within ninety (90) days after discharged or completion of treatment. (Supported by
receipts/medical certificates/abstracts, among others)

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 (10) The existing co-maker(s) can be used. For those under Memorandum of Agreement (MOA): 1
co-maker under MOA; For Personal Payment (PP): 2 co-makers (1 MOA and 1 PP).

(11) Processing Period: At least two (2) days after submission of all requirements.

(12) Approval: One (1) member of the Credit and Collection Committee

d. REQUIREMENTS

(1) Medical advice/prescription

(2) Duly accomplished application form
(3) Documents to establish relationships (e.g. marriage contract, birth/ baptismal certificate)

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 SALARY LOAN GUIDELINES (For Salary Deduction)

I. OBJECTIVES:

1. To provide financial assistance to members at lower interest rate and better terms of
payment;
2. To consolidate Regular Loan 1, Regular Loan 2, Short Term Loan and ATM Loan;

II. CRITERIA FOR ELIGIBILITY

1. Members with at least ₱10,000.00 paid-up share capital.

2. Only regular/permanent employee of institutions with a Memorandum of Agreement (MOA)
for salary deduction with LPMPC can avail of this type of loan except for UPLB with CASUAL
REGULAR appointment
3. Members with existing Regular Loan 1 (RL1), Regular Loan 2 (RL2), Short Term Loan (STL)
and ATM Loan can consolidate any combination of these loans to avail of the lower interest
rate.
4. The member should have a take-home pay of not lower than that required by their
respective institutions after the deduction of monthly obligations.
5. At the time of the maturity of the loan, the member should not be:

a. More than 65 years old if government employee

b. More than 60 years old if from the private sector

III. LOAN FEATURES

(a) Loan Principal : Maximum of Six Hundred Thousand Pesos (₱600,000.00)

One month salary/income + 300% of 85% of Share Capital + 100%

savings deposit but not to exceed (₱600,000.00)

(b) Terms of payment: Maximum of six (6) years to be amortized monthly

(c) Service Fee: 1% to be deducted in advance

(d) Filing Fee: ₱100.00

(e) Renewal: May be renewed after payment of three (3) months of the
previous loan. Remaining balance from the previous RL1, RL2,
STL and ATM loans shall be deducted from the loan proceeds.

(f) Interest: 6.5% per annum, add-on, diminishing balance

(g) Retention: 1% retention

(h) Co-makers: 2 co-makers under salary deduction

(i) Processing Period: Three (3) working days after submission of all requirements

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 (j) Approval: At least two (2) members of the Credit and Collection Committee

(k) Documents Needed: Photocopy of pay slip or payroll, photocopy of the IDs of borrower
and co-makers with signature

(l) Deductions: Kasambili dues shall be deducted from the proceeds of the Salary
Loan.

(m) Other considerations: For members with only Five thousand pesos (₱5,000.00) net pay
per month after deduction of all loan amortizations, fifty percent
(50%) of the net proceeds of the salary loan shall be used for the
payment of the ATM Loan to shorten the duration of payment.

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 REGULAR LOAN GUIDELINES
(For self-employed members and those not on payroll deductions)

I. OBJECTIVE

To provide financial assistance to members

II. CRITERIA FOR ELIGIBILITY

The applicant has been a member for at least three (3) months and with a minimum of
₱10,000.00 paid-up share capital and updated share capital contribution. The maker must be in
good standing for the last two (2) years.

III. LOAN FEATURES

(a) Loan Principal:

i. FIRST LOAN

One (1) month salary/income + 85% share capital + 100% savings deposits
but not to exceed ₱30,000.00; or 150% of 85% of share capital + 100%
savings deposits but not to exceed ₱50,000.00

ii. SECOND LOAN

One-and-a-half (1.5) months salary/income + 85% share capital + 100%

savings deposits but not to exceed ₱50,000.00; or 200% of 85% of share
capital + 100% savings deposits but not to exceed P100,000.00

iii. THIRD LOAN

Two (2) months salary/income + 85% share capital + 100% savings deposits
but not to exceed ₱60,000.00; or 250% of 85% of share capital + 100%
savings deposits but not to exceed ₱150,000.00;

iv. FOURTH LOAN

Two (2) months salary/income + 85% share capital + 100% savings deposits
but not to exceed ₱75,000.00; or 300% of 85% of share capital + 100%
savings deposits but not to exceed ₱500,000.00.

(b) Other Conditions:

i. Loan step increment could be availed under this category if the member has
not been in default for one (1) month for the current loan.

ii. A member who had defaulted for at least three (3) months for the current
loan shall not have the privilege to renew for next loan stage. Renewal is
allowed provided that the computation of the loanable amount shall be based
on the first loan stage.

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 iii. Issuance of post-dated checks for payments (may be preferred by those
who have means to issue checks).

(c) Computation of Capacity to Pay

i. For self-employed - 30% of monthly income shall be used for loan

amortization;

ii. For salaried/employed - Net take home pay less ₱5,000.00shall be used
for loan amortization for salaried/employed member with regular/permanent
appointment and under personal payment scheme;

(d) Terms of payment: Maximum of 36 months (3 years)

(e) Interest: 6.5% per annum, add-on, diminishing balance

(f) Service Fee: 1% to be deducted in advance

(g) Retention: 1% of the amount borrowed

(h) Filing Fee: P100.00

(i) Renewal: After payment of 30% of the loan

(j) Co-makers: Two (2) co-makers for loans P100,000 and below; One
(1) from agencies with MOA and one (1) not under MOA

Two (2) co-makers under MOA for loans above P100,000.00

without collateral and 50% secured by share capital.

No co-maker is required for loans secured by collaterals or

if the loan amount is equal to Share Capital.

(k) Documents needed: For self-employed members:

i. Latest Income Tax Return (ITR);

ii. Notarized “Sinumpaang Salaysay” (Sworn Statement)
(income of P5,000 and below);
iii. Notarized lease of contract (from rental or leased
property(ies); and/or
iv. Other documents as may be deemed necessary to
prove the capacity to pay.

For salaried/employed members – 2 months latest pay slips

and certificate of employment and compensation

Credit/Background Investigation (CI/BI) Report for loans

above P50,000.00 shall be done by the Credit and Collection
Section to determine the validity, authenticity and
correctness of data and documents submitted.

(NOTE: Validity of CI/BI with proofs/proper

documentations. Completion of requirement/CHECKLIST)

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 (l) Deductions: Kasambili dues shall be deducted from the proceeds of the
Regular Loan.

(m) Processing Period: Three (3) working days after issuance of CI/BI Report and
submission of all requirements

(n) Approval: At least two (2) members of the Credit and Collection
Committee

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 BUSINESS LOAN GUIDELINES

I. OBJECTIVE

To provide loan to LPMPC regular members for operational capital of productive or business
purposes as follows:

(1) Crops, livestock, fishery, aquaculture business

(2) Other business ventures such as:

(a) Computer Shop

(b) Repair Shop
(c) Laundry Shop
(d) Sari-sari Store
(e) Cafeteria/Restaurant
(f) Junk Shop
(g) Other legal business ventures

II. CRITERIA FOR ELIGIBILITY

(1) The applicant must be a LPMPC regular member for at least one (1) year and has satisfied
the requisite as defined in the 5 C’s (capacity to pay, collateral, co-maker, character and
circumstances);
(2) Has at least ₱20,000.00 share capital contribution or at least ten percent (10%) of the
amount to be borrowed whichever is higher.

III. LOAN FEATURES

(1) The loan principal shall not exceed Six Hundred Thousand pesos (₱600,000.00).
(2) For members under salary deduction, they can avail of non-collateralized loan of 3x of
85% of their share capital contribution but not to exceed ₱100,000.00. Loans of more
than ₱100,000.00 shall be collateralized.
(3) For self-employed members, the loan is collateralized regardless of amount.
(4) The acceptable collaterals are titled lots within the following areas: Los Baños, Calamba
City, Bay, Calauan, San Pablo City, Sta. Cruz, Binan, Alaminos, Cabuyao, Nagcarlan, Pila,
Rizal, Sta. Rosa and Victoria in Laguna; and Sto. Tomas and Tanauan in Batangas; with
provision for right-of-way.
(5) Repayment period shall not exceed five (5) years or sixty (60) months amortized monthly.
(6) The loan is renewable after paying at least fifty percent (50%) of the loan provided that
the applicant has no default for three (3) months.
(7) To avail of loan above One Hundred Thousand Pesos (₱100,000.00), the applicant must
be engaged in a profitable business within the area of operation for the last two (2) years.
(8) Interest of 6.5%, add-on, diminishing balance
(9) Service fee of 1% and Filing Fee of P100.00 shall be deducted outright
(10) Capital build-up of one percent (1%) shall be deducted outright.
(11) The loan shall be covered by Loan Protection Plan Insurance (LPPI).
(12) Post-dated cheques shall be required when the loan being applied for is ₱200,000 and
above.
(13) Pre-and post-evaluations are required as gauge of the project’s performance. Post-
audit/evaluation of the business venture to be conducted by the Audit Committee. The

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 loan shall be demandable if not used for the intended purpose. The loan shall be
converted to Salary/Regular Loan with regular rate of interest.

(14) Requirements:

(a) Mayor’s Permit/Barangay Business Permit/DTI in the name of the

member-borrower

(b) 2 latest Income Tax Return (ITR)

(c) Feasibility Study/simple or basic business plan

(d) Audited Financial Statement

i. Projected cash flow for new business

ii. For those with existing business

Above P 100,000 - P 499,999.00 - With Previous Year’s Audited

Financial Statement/Annual
VAT/Annual Percentage/
Franchising Agreement
iii. P500,000 – P 600,000 (With Audited Financial Statement for the last two (2)
years

(15) Processing Period: Three (3) days after issuance of CI report and submission of all
requirements

(16) Approval: At least two (2) members of the CCC

(17) Manner of Release:

Loan Principal % Release Business Completion

P100,000 and below lump sum Upon certification of the

Credit Investigator of
the existence of the
business

Above P100,000 1st release-40% Upon approval

2nd release-30% 50%
3rd release-30% 60%

All releases shall be done upon certification from the Credit Investigator.

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 REAL ESTATE and/or HOUSING LOAN GUIDELINES

I. OBJECTIVE

To provide regular members of the LPMPC a Real Estate Loan for the following purposes:

(1) For purchase of a lot;

(2) For purchase of house and lot;
(3) For renovation/expansion of existing house;
(4) For the settlement of account with banks, lending institutions or private individuals to avoid
foreclosure of lot/house and lot

II. CRITERIA FOR ELIGIBILITY

(1) The applicant must be a regular member for at least one (1) year and has the capacity to pay
the monthly amortization;

(2) Must have a share capital of at least 10% of the loanable amount;

(3) He/she has not been in default for two (2) months in the payment of other loans, including
Petty Cash and Hospitalization loans, which will require updating prior to application; and

(4) The applicant is not a beneficiary of the LPMPC Cooperative Housing Project.

(5) The borrower should not be more than sixty five (65) years old at the time of maturity of the
loan.

III. LOAN FEATURES

(1) The amount of loan principal shall not exceed ₱3M.

(2) Members under Memorandum of Agreement (MOA) may avail of loan principal not exceeding
P100,000 for house renovation/expansion with no collateral required.

(3) The balance from other loans can be deducted from the proceeds of this loan at the option of
the member; and

(4) The Real Estate Loan shall be paid for a period not exceeding fifteen (15) years and shall be
amortized monthly based on 6.5% interest rate per annum, add-on, diminishing balance.
Service Fee of 1% and Filing Fee of P100.00 shall be deducted in advance.

(5) For self-employed members and those under personal payment, issuance of post-dated checks
shall be required when the loan being applied for is P200,000 and above;

(6) The loan shall be one hundred percent (100%) secured by the applicant’s 85% of share
capital and time/savings deposits, real estate mortgage of the object of the loan or other
OCT/TCT declared under the name of the member and shall be covered by a Loan Payment
Protection Insurance (LPPI);

If the applicant wishes to use OCT/TCT declared under his/her name as collateral other than
the subject of this loan, the amount of loan shall be evaluated based on the subject lot to be
purchased. However, the appraised value of the submitted OCT/TCT should be equal or
higher than the amount of loan.

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 The acceptable collaterals shall be within the following areas: Los Baños, Calamba City,
Calauan, San Pablo City, Sta. Cruz, Binan, Alaminos, Cabuyao, Nagcarlan, Pila, Rizal, Sta. Rosa
and Victoria in Laguna; and Sto. Tomas and Tanauan in Batangas; with provision for right-of-
way.

(7) The following documents shall be required to be submitted by the applicant.

(a) For purchase of lot/house and lot

Upon Filing of Application

i. Deed of conditional sale (contract to sell) in favor of the applicant. (for Objectives 1
and 3)
ii. Certification from the concerned Barangay Captain where the lot is located that it is
free from informal settlers and not the subject of any dispute
iii. Photocopy of the OCT/TCT free from all liens and encumbrances (for Objectives
Nos. 1 and 3). Photocopy of the OCT/TCT (for objective no. 2)
iv. Copy of Tax Declaration and Tax Payment (OR)
v. Sketch of Lot Location
vi. Copies of Income Tax Returns for the last two (2) yrs and the latest payslip for
payroll deduction members
vii. Copy of the latest/recent official receipt of real estate tax payment

Upon Approval

i. Original Real Estate Mortgage of the lot in favor of LPMPC to be registered with the
Register of Deeds
ii. Original copy of the OCT/TCT in the name of the applicant free from all liens and
encumbrances
iii. Other documents that may be needed by the LPMPC.

(b) For Renovation, Expansion and Completion (For Salary Deduction, Without Collateral)

i. Payslip
ii. 2 co-makers under MOA
iii. Photocopy of Torrens Title
iv. Tax Declaration and Tax Payment
v. Certification from the Barangay Captain that the Lot is free from informal
settlers and not the object of any dispute from any adverse claimant;
vi. Building plan/sketch/detailed scope
vii. Estimated cost of labor and materials

(8) Prior to the granting of this loan, the LPMPC-designated credit/project evaluator shall inspect
the property, at the expense of the borrower, to ascertain the following:

(a) The exact location of the lot duly marked by monuments (“mojons”);
(b) Certification from the Barangay Captain that the lot is free from informal settlers and not
the object of any dispute from any adverse claimant;
(c) Validity of ownership through verification from the Register of Deeds where the property
is registered.

(9) The loan value of the lot shall be appraised using the following formula:

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 Loan Amount = Market value * 80% * 70% + 85% of Share Capital

(Note: Option of the member: Incorporate the transfer of ownership/title of the house/lot in
the total computation of the loan)

(10) The proceeds of loan shall be released 100% upon submission of the required documents (if
using a substitute OCT/TCT as collateral).

(11) The applicant who wishes to re-avail of this loan for the purchase of another lot may do so,
provided that he/she has fully paid the previous real estate loan.

(12) Approval of the loan shall be done en banc by the Credit and Collection Committee.

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 VEHICLE LOAN GUIDELINES

I. OBJECTIVE

To provide financial assistance in the form of loan to LPMPC members for acquisition of a
brand new vehicle.

II. CRITERIA FOR ELIGIBILITY

(1) The member should have the capacity to pay the monthly amortization of the loan.

(a) Net pay after deducting the monthly mandatory take home pay required by the General
Appropriation Act
(b) If the net pay is not enough to cover the monthly amortization, the member must show
proof of additional source of income and will be required to issue Post Dated Checks
(PDC).
(c) Member/s who has existing loan (Salary Loan, REL, HL, etc.) can still avail of this loan.

(2) One (1) year regular member of LPMPC.

(3) The member is in good standing.
(4) At the time of the maturity of the loan, the member should not be:

(a) More than 65 years old if government employee

(b) More than 60 years old if from the private sector

(5) For loans of Two Hundred Thousand Pesos (₱200,000.00) and above – All borrowers must
have a paid-up share capital equivalent to 10% of the loan being applied for.

III. LOAN FEATURES

(1) CLASSIFICATION OF VEHICLE LOAN

(a) Purchase of brand new vehicle

(b) Re-financing of brand new vehicle.

(2) COLLATERAL

The certificate of registration (CR) and official receipt (OR) of the vehicle will serve as the collateral.

(3) PROCESSING

(a) Purchase of brand new vehicle:

1. The 20% down payment will be directly paid to the dealer by the borrower.
2. 3.55 % chattel mortgage fee for four-wheeled vehicles and actual expenses for the
registration of the Chattel Mortgage for motorcycles.
3. The original copy of the comprehensive car insurance policy must be submitted to
LPMPC yearly until the loan is fully paid
4. Proceeds of the loan transaction shall be paid directly to the dealer.

(b) Re-financing of brand new vehicle:

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 1. The LPMPC will finance a brand new vehicle already purchased in cash by a
borrower. To qualify, the purchase date must be within sixty (60) calendar days.
2. Proceeds of the loan transaction shall be paid directly to the borrower.

(4) DOCUMENTS NEEDED

(a) Pay slip

(b) Completely filled-up application form
(c) Proof of additional source/s of income
(d) At least two (2) co-makers under MOA
(e) Chattel mortgage
(f) Canvass of the cost of desired vehicle
(g) ITR for two (2) years

(5) TERM/MODE OF PAYMENT

(a) The maximum loanable amount is P 1.8 M.

(b) The maximum term of payment will be five (5) years.
(c) Salary deduction
(d) Issuance of Post Dated Checks (PDC)
(e) A self-employed borrower must execute a notarized undertaking to pay all loan
amortization through PDCs. Upon release of the loan, 13 PDCs should be issued to
include all other loans. Succeeding PDCs should be issued after the 10 th PDC has been
disbursed.

(6) INTEREST RATE: 6.5% per annum, add-on, diminishing balance

(7) DEDUCTIONS FROM LOAN PROCEEDS

(a) One percent (1%) retention to share capital and One percent (1%) service fee
(b) Filing fee of ₱100.00.
(c) Chattel mortgage fee (3.55%)

Deductions shall be collected outright from the loan proceeds or paid in cash by the borrower.

(8) EQUITY REQUIREMENT

An amount equivalent to twenty percent (20%) of the total cost of the unit shall be required as
equity for loans above P100,000.00.

(9) MANNER OF RELEASE OF LOAN PROCEEDS

(a) Purchase of brand new vehicle

1. The borrower pays the 20 % down payment directly to the dealer.

2. Prior to the release of loan, the member must issue an Affidavit of Undertaking that
he/she will submit the CR and OR of the vehicle to LPMPC.
3. The member shall shoulder whatever difference in the total cost of the vehicle and
the approved loan amount.
4. Proceeds of the loan shall be paid directly to the dealer.
5. Submission of all documents and requirements (including OR/CR of vehicle,
Insurance Policy, copy of OR for the purchase, duly signed Chattel Mortgage
document, duly accomplished Motor Vehicle Inspection Report and others that may

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 be required) must be done within two (2) months from loan release. Failure to
submit the above documents/requirements shall make the loan due and
demandable.

(b) Re-financing of a brand new vehicle

Full payment of loan proceeds shall be released upon submission of all

requirements. Fifty percent (50%)of the loan proceeds may be released upon
submission of proof of purchase of the vehicle, one-year comprehensive insurance and
payment of chattel mortgage ( if not deducted from loan); and the other 50 % upon
completion of requirements and processing of the Chattel Mortgage. Completion of
requirement must be within three (3) months.

(10) PROCESSING PERIOD: Three (3) working days after submission of all requirements

(11) APPROVAL: At least two (2) members of the Credit and Collection Committee

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 VEHICLE LOAN II GUIDELINES

I. Objective

To provide loan to members under MOA intended for the acquisition of second hand or slightly
used vehicle.

II. Criteria for Eligibility

(1) The member must have the capacity to pay the monthly amortization of the loan with a
with a take-home pay of not lower than that required by their respective institutions
after deducting the monthly amortization of the loan
(2) Member under MOA
(3) Member in good standing with at least one year regular LPMPC membership
(4) At the time of the maturity of the loan, the member should not be:
1. More than 65 years old if government employee
2. More than 60 years old if from the private sector
(5) The vehicle to be purchased should not be more than 7 years old

III. Loan Features

(1) The maximum loan principal: Three Hundred Thousand Pesos (P300,000.00)
(2) Interest rate: 6.5% per annum, add-on, diminishing balance
(3) Deductions

(a) Service Fee of 1%

(b) One percent (1%) retention to share capital
(c) Filing fee of one hundred pesos (P100.00)

(4) Salary deduction

(6) Requirements

(1) latest pay slip

(2) completely filled-up application form
(3) two (2) co-makers under MOA
(4) OR/CR of the vehicle
(5) Must be insured under LPPI
(6) Must undergo credit investigation (with Picture of the front, back, side and
interior of the vehicle)
(7) LTO verification
(8) Deed of Sale
(9) Affidavit of Undertaking stating that the ownership of the vehicle will be
transferred to the name of the borrower within 30 days from loan release
otherwise the loan becomes due and demandable.

(7) Manner of Release of Loan Proceeds: The proceeds of the loan shall be paid directly to
the seller

(8) Processing Period: Three (3) working days after submission of all requirements

(9) Approval: At least two (2) members of the Credit and Collection Committee

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 MEMORIAL LOT LOAN GUIDELINES

I. OBJECTIVE

To provide financial assistance to LPMPC regular members for the purchase of memorial lots.

II. CRITERIA FOR ELIGIBILITY

(1) Must be a LPMPC regular member for at least one (1) year.
(2) Must have a share capital of at least ₱10,000.00.
(3) Must be in good standing with no delayed payments for the last six months.
(4) Must have the capacity to pay.

III. LOAN FEATURES

(1) The loan is for the acquisition of memorial lot(s) in Los Baños and Bay, Laguna areas.

(2) The maximum loanable amount shall be based on the type of memorial lot(s) to be
purchased, but not to exceed ₱360,000.00.

(3) The loan shall be payable for a maximum of five (5) years.

(4) The terms of payment shall be through salary deduction or issuance of post-dated checks
(PDC) subject to bank clearing.

(5) The following charges shall be included in the amount of loan:

Interest 6.5% per annum, add-on, diminishing balance

Filing Fee ₱100.00
Service Fee 1%
Capital build-up Retention 1%

(6) In case of pre-termination of contract, a pre-termination fee of Five Hundred Pesos

(P500.00) shall be charged from the member.

(7) The loan shall be covered by LPPI.

(8) LPMPC will act as agent to proponent memorial lot owners.

(9) COLLATERAL

The loan shall be secured by the Certificate of Ownership of memorial lot(s).

(10) DOCUMENTS NEEDED

(a) Pay slip and Certificate of Employment and Compensation for employed.
(b) ITR for the last two (2) years for self-employed
(c) Completely filled-up application form

(11) Processing Period: Three (3) working days after submission of all requirements

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 (12) Approval: At least two (2) members of the Credit and Collection Committee

(13) TERMS AND CONDITIONS

(a) The loan shall be paid in equal and successive monthly installment, which shall
commence on the statement date until the account is fully paid.

(b) In case the member opted to use the lot, he/she must pay the outstanding balance
on the lot subject to rebates.

(c) The member shall not return, sell, assign or transfer rights without written consent
from the Management of the Cooperative.

(d) In case the member fails to pay three consecutive monthly amortizations, he/ she
agrees to the following:

1. The Management of LPMPC shall have the right to suspend and cancel the
ownership of the lot;
2. The member shall be subject to the existing rules on default;
3. The outstanding balance including the interest and fines shall immediately
become due and demandable.

(e) In the event the member dies, the plan is automatically fully paid. (Interment fee is
not included in the plan, subject to prevailing price).

(f) In case the member decides to pre-terminate the contract, he/she must transfer
his/her right of ownership to another member, subject to appropriate charges and
approval of the LPMPC Management. He/she shall look for a member who is willing
to get the lot and absorb his/her outstanding balance .

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 LIFE PLAN INSURANCE LOAN GUIDELINES

a. OBJECTIVE

To provide financial assistance to LPMPC regular members for the acquisition of Life Plan
Insurance.

b. LOAN FEATURES
(1) The loan is for the acquisition of Life Plan Insurance packages at the choice of the
member

(2) The maximum loanable amount shall be ₱360,000.

(3) Initial loan shall be for a period of one year, renewable yearly until the plan is fully paid
but not to exceed five (5) years. Monthly payments to be collected by LPMPC from the
member shall follow the schedule indicated by the Insurance provider.

(4) Interest and other Charges

Zero percent (0%) interest rate, no service fee and no retention for capital build-up.
However, delayed payments shall be subject to 2% fines per month.

Note: The franchise fee, collection fee and any other commission shall be treated as
income of the Cooperative.

(5) Mode of Payment

(a) Salary deduction

(b) Issuance of Post-dated Checks (PDC)
(c) Over-the-counter payments - accepted for members with good repayment records.

c. CRITERIA FOR ELIGIBILITY

(1) Must have the capacity to pay the monthly amortization of the loan based on existing
guidelines.
(2) Must be a regular member for at least one (1) year.
(3) Must have a share capital of at least ₱10,000.00
(4) Must not have any delayed payments for the last six months.
(5) Must not be more than sixty-five (65) years old at the time of maturity of the plan.

d. COLLATERAL

The Life Plan/Insurance policy shall serve as the collateral for this loan.

e. DOCUMENTS NEEDED

(1) Completely filled-up loan application form

(2) Pay slip, Certificate of Employment and Compensation for employed
(3) ITR for the last two (2) years or any Proof of source of Income for self-employed
(4) Completely filled-up Life Plan application form with health declaration

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 f. TERMS AND CONDITIONS

(1) The member shall not return, sell, assign or transfer rights without written consent from
the management of LPMPC.
(2) In case the member decides to pre-terminate the contract, the member shall be subject to
a pre-termination fee of P500.00. LPMPC has the right to sell the ownership to other
eligible members.
(3) In case the member assigns the rights to another person for immediate use, the balance
of the plan shall be considered due and demandable. Otherwise, rights can not be
assigned or transferred, and the monthly payments shall continue until the balance is fully
paid.

e. PROCESSING PERIOD: Three (3) working days after submission of all requirements

f. APPROVAL: At least two (2) members of the Credit and Collection Committee

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 EDUCATIONAL LOAN GUIDELINES

a. Objective

To provide LPMPC regular members with educational loan for the following purposes:

(1) Payment of matriculation/tuition fees of members or their beneficiaries*, including

adopted ones with proof of legal documents ; and

(2) Thesis/completion of field study/On-the-Job Training (OJT), requirements for graduation

and board exams.

*The beneficiaries shall include the son, daughter, brother (single) and sister (single)
living with the members and with no source of income.

b. Criteria for eligibility

(1) The applicant must be a LPMPC regular member for at least one year.
(2) Has at least P10,000.00 capital share contribution.
(3) He/she is updated in the payment of his/her existing loan(s).

c. Loan Features

(1) Maximum loan principal is ₱100,000.00.

(2) The full amount based on the assessment can be availed on or before enrollment subject
to #1.

(3) Repayment period shall be ten (10) months for elementary and secondary, and 5 months
for college.

(4) The interest rate shall be 1% per month or 6.5% per annum, add-on, diminishing balance.

(5) The following shall be deducted outright:

Service fee – 1%
Filing fee - P100.00
Retention - 1%

(6) Manner of Release - The loan may be released upon compliance of the needed
requirements.

d. Requirements

(1) Proof of current enrollment/assessment (bill of matriculation/tuition fees issued by the

school cashier, Form 5, certification of enrollment from the school administration).

(2) For thesis/completion of field study/OJT, requirements for graduation and board exams,
detailed estimates of expenses on supplies and materials, equipment to be used,
transportation and other supporting documents should be submitted.

e. Processing Period: Three (3) working days after submission of all requirements
f. Approval: At least two (2) members of the Credit and Collection Committee

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 LOAN RESTRUCTURING PROGRAM

a. Objectives

(1) To design a payment program for members who are in default in the payment of their
obligations
(2) To address coop delinquency problem

b. Criteria for Eligibility

(1) The member has outstanding loan(s) with the cooperative which is/are in default for three (3)
months; and
(2) The current net pay of member is sufficient to cover the monthly amortization payable for a
maximum of 60 months (5 years).

c. Loan Features

(1) The term of payment shall not be more than 60 months (5 years) computed monthly based on
the capacity to pay;
(2) Interest rate shall be at 6.5% per annum, add-on, diminishing balance;
(3) Service Fee (1%) and Filing Fee (₱100) shall form part of the restructured loan. Fines shall be
imposed on defaulted amount at the rate of 2% per month;
(4) The member’s loan shall be covered by LPPI;
(5) All loans shall be consolidated; and
(6) Members with Restructured Loan under MOA whose deduction is not sufficient to pay his
monthly amortization by two hundred pesos (₱200.00) shall be allowed to pay over-the-
counter.

d. Requirements

(1) Letter request addressed to the CCC

(2) Loan Form
(3) Proof of capacity to pay (pay slip/payroll, ITR or Notarized Sinumpaang Salaysay, proof of
additional source of income for Salary Deduction who are deficit in payment)
(4) Co-maker(s)

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 GUIDELINES ON COMPROMISE AGREEMENT

a. OBJECTIVE

To recover 100% of the remaining balance including current interest and fines of delinquent
account under a compromise agreement within the earliest possible time.

b. ELIGIBILITY

Former regular members who have pending obligations with the cooperative and are willing to settle
their accounts are given the privilege to enter into a compromise agreement with the cooperative.

c. FEATURES

The following shall be taken into consideration for implementation:

(1) A former regular member entering into a compromise agreement with the cooperative will
be charged only of the current interest including fines of his/her remaining balance.
(2) The compromised amount shall be amortized monthly for a maximum period of 120 months.
(3) Additional fine of 2% per month will be imposed on the unpaid monthly amortization.
(4) The compromised amount shall be covered by insurance (Loan Payment Protection
Insurance).
(5) The cooperative shall pursue legal actions as needed.

d. APPROVAL

The Compromise Agreement between the former regular member and LPMPC shall be evaluated and
approved by the Credit and Collection Committee.

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