August 26, 2022

MR. ERMAL M. VILLON

Chairperson – Board of Trustees
GSCGEA

Dear Mr. Villon,

Magandang GenSan!

I am submitting to you a copy of Proposed Enhanced Comprehensive Loan Policies

and Guidelines. This policy and guidelines were based on the Resolution Number
14, Series of 2017 adopted last May 26, 2017.

Upon review, there were items in the resolution that needs to be updated as to the
existing practices done by our organization as to the approval of loans. In particular,
Sections 5, 6, and 12. The rest of the sections or provisions will be retained as it is
acknowledged to be vital and rational in the implementation of our policy and
guidelines.

The proposed amendments will help in the operations of our organization especially
on our financial concerns as it will provide the following;
1. clarity on the loan applicant of their accountability and responsibility in our
beloved GSCGEA,
2. to provide a quick and shortened process time of loan application,
3. to practice proper documentation and recording of loan details of applicants to
our system and
4. to exercise transparency

May this proposal be of your considerations as well. Thus, I am asking you or any of
the Members of the Board of trustees to sponsor a resolution that this proposal be
adopted.

For the Best of GSCGEA,

HAROLD P. APONESTO
Vice - President

Noted By:

VINCE GERALD F. AMABLE

President
cc: file
Executive members
Board of Trustees
 Proposed Enhanced Comprehensive Loan Policies and Guidelines

Section 1. Rationale – These policies and guidelines seek to consolidate and

update existing policies on the grant of health, education, and staple food supply to
members of General Santos City Employee Association (GSCGEA) in the form of
loan with very minimal interest or fees to afford members cope up with steady rising
standards of living or alleviate the adverse economic condition of members or that of
their qualified beneficiaries in times of distress or misfortune.

Section 2. Scope and Coverage – These policies and guidelines shall govern the
terms and conditions of loan of members intended for payment of fees or changes
for goods and services incurred in any service providers or from Association, which
loan shall be made available to the general membership of good standing of their
beneficiaries, subject to eligibility requirements and limitations as hereinafter
provided.

Section 3. Definition of Terms – For purposes of these policies and guidelines, the
following terms shall have the following meaning:

a.) Membership-borrower – Any regular or associate member of GSCGEA,

who contributed, paid and remitted for at least six (6) monthly prescribed
dues prior to the day of application with any type of loans and possesses
none of the disqualification under existing policies on membership.
b.) Beneficiary – any of the member’s legitimate spouse, legitimate child, or
children, parents, unmarried brother or sister. In case the member is single
or legally separated, his/her beneficiary or beneficiaries shall be in
accordance with law that provides the right and privileges to a solo parent.
c.) Staple Food Loan – a loan by a member for the purchase of stable food
supply such as iron-fortified rice and other prime commodities from
accredited supplier or from Association.
d.) Pharmacy Loan – a loan by a member for the purchase of own or for
his/her beneficiaries’ duly prescribed drugs or medicines, maintenance
medicines, dietary supplement or vitamins from GSCGEA accredited
pharmacies.
e.) Education Loan – a loan by a member for payment of own or his/her
beneficiaries’ tuition fee, matriculation fee, school laboratory fee, and other
related school charges or fees imposed by the schools, colleges or
university.
 f.) Education Supply Loan – a loan by a member for the purchase of own or
his/her beneficiaries’ textbook, school supply, or uniform from the
bookstores or suppliers.
g.) Optical Loan – a loan by a member for the purpose of his/her needs
intended for his/her eye problem, such as eye check-up and for the
purchase of his/her own eyeglasses from Optical Clinic.
h.) Emergency Loan – a loan by a member for urgency purposes such as
Calamities (both man-made and natural disasters), major medical
operations, hospital admission of member and direct/immediate
beneficiary, distended utility bills and other related concerns.

Section 4. Types of Loans – The following shall be the types of loans that may be
availed of by a qualified member.

a.) Staple Food

b.) Pharmacy Loan
c.) Education Loan
d.) Education Supply Loan
e.) Optical Loan
f.) Emergency Loan

Section 5. Common Basic Eligibility Requirements – A new applicant and/or

member must possess all the following requirements to be eligible in availing any of
the loan programs of Association, to wit:

a.) Must be in the government service on the date of application of loan, not
under suspension, or shall retire from government service during the term
of his/her loan;
b.) Must have a net take home pay equal to the amount set forth by Civil
Service Commission, Department of Budget and Management and any
competent government agency, after deducting the prescribed monthly
amortization for the loan being applied for, of which is Php 5,000.00;
c.) Must accomplish the GSCGEA Loan Application Form.
d.) Must submit copy of the most recent or latest pay slip duly certified by
HRMDO PMS/TMS; and
 e.) None of any of the disqualifications under existing policies membership
and these policies.

Section 6. Schedule of Loan Amount, Term, Interest Rate, and Processing Fee
– The following shall be the loan Maximum amount, maximum term, interest, and
processing fee of loans:

MAXIMUM MAXIMUM MONTHLY PROCESSING Loan

TYPE
AMOUNT TERM INTEREST FEE Protection
Staple Foods Prevailing
1 Month ₱ 80.00 ₱0
(Rice) Price
1% of the
Pharmacy ₱ 3,000.00 3 Months 2% ₱ 20.00
loan amount
1% of the
Education ₱ 5,000.00 4 Months 2% ₱ 20.00
loan amount
Education 1% of the
₱ 3,000.00 4 Months 2% ₱ 20.00 loan amount
Supply
1% of the
Optical Loan ₱ 3,000.00 3 Months 2% ₱ 20.00
loan amount
₱ 10,000.00 6 Months 1% of the
Emergency
₱ 20,000.00 12 Months 2% ₱ 20.00 loan amount
Loan

Section 7. Surcharge – The Association shall impose a surcharge at the rate of one
percent (1%) per month on total past due accounts of member-borrower.

Section 8. Mortgage Redemption Insurance – The Association may impose such

additional fee from member-borrower to defray the cost for acquisition of mortgage
redemption insurance to ensure efficient recovery of loan in case the member-
borrower dies within the term of loan.

Section 9. Rebate – The Association shall apply rebate corresponding to the

amount of interest(s) that the loan shall have earned should the member-borrower
opted to pre terminate the loan by paying all the remaining balance of principal and
the interest that already accrued them.

Section 10. Schedule of Amortization to be Paid Equally – The schedule of

monthly amortization of any type of loan shall be paid by the member-borrower in
such equal amount corresponding to the term of loan until fully paid and satisfied.

Section 11. Renewal of Loan; Loan Separability and Independence – any of all
types of loans, except Staple Food Loan, may be renewed by the member-borrower,
provided, he/she meets the following conditions;
 a.) Seventy-Five (75%) of the amortization of such particular loan was already
made;
b.) Remaining balances of the previous loan shall/must be deducted upon the
approval of new loan applied;
c.) Each type of loan shall be distinct and separate from each other, and shall
not in any way the inefficiency of rate of amortization of a certain loan
affects the approval of any of its other types and provided further that
d.) Member-Borrower still possesses all the eligibility requirements upon filling
the application for renewal of loan.

Section 12. Screening Committee – the Loan Screening Committee shall be

created which composed of three (3) members;

a.) They will determine the qualifications and eligibility of members-borrowers

desiring to apply for a loan in the Association.
b.) The composition of members must be the Vice –President (Acting
Supervising Administrative Officer), the Auditor and the Treasurer of the
Association
c.) The Auditor should be the prime signatory and whom will check as to the
completeness and verification of the submitted requirements of the loan
applicant. The Treasurer will check as to the availability of funds from the
specific charging account of the association. And the Vice – President will
be the final signatory as to the Approval of Loan and ensure that the loan
details are documented accordingly.
d.) The member of Loan Screening Committee shall receive a monthly
honorarium of Two Hundred Pesos (₱ 200.00) each.

Section 13. Settlement of Past Due Accounts – The Association shall endeavor to
demand and collect payment of loan amortization from members-borrowers within
the scheme of check-off agreement as cited in our Collection Negotiation Agreement
between the Association and the City Government and shall be governed with the
following conditions:

a.) The Treasurer of the Association must submit to the Board of Trustees, a
list of member-borrowers with past due accounts stating therein the
complete details and status of the account every quarter for legislative
action;
 b.) Resort to court litigation and other agencies may be availed of by the
Association only when the account of a member-borrower becomes due
and demandable, and there was failure on the part of member-borrower to
pay his/her account after demand notice has been made and duly received
by the member-borrower.
c.) For purposes of settlement, mediation or conciliation proceedings, the
President, Committee Chairperson on Internal Affairs, Committee on Legal
and Ethics, and the Auditor of the Association shall represent the
Association, and demand from a member-borrower the principal loan
amount and the total accumulated interests and surcharges, unless the
Board of Trustees authorized the waiver of imposition of interests or
surcharges in meritorious cases.

Section 14. Written Canvas for the Supply of Goods or Services – Supply of
goods and services to members-borrowers in the form of loan shall be made through
written canvass or quotation to determine from among suppliers the best and most
advantageous terms for the Association and its members, taking into consideration
the quality of goods or services being offered and terms of repayment.

Section 15. Separate Accounts – There shall be a separate account to be

maintained in the general fund of the Association where transactions on these loans
shall be properly taken thereunder.

Prepared by:

HAROLD P. APONESTO
Vice – President/ Supervising Administrative Officer
GSCGEA