AGMANA LOAN POLICIES AND GUIDELINES

IMPLEMENTING GUIDELINES ON THE MEMBERS’ AVAILMENT OF LOAN PRIVILEGES OF

AGMANA CREDIT COOPERATIVE

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 ₱1,000 paid-up share capital with updated share capital contribution.
(2) A member is qualified to avail of a Regular Loan for members whose share capital is less
than ₱10,000 can avail Business Loan with a minimum ₱10,000 - ₱50,000 without any
collateral; and
(3) Collateralized Business Loan 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 Committee, and the Manager shall be approved
by at least two members of the Board of Directors.
(2) Guarantee or Collateral: a. Share Capital of up to 100% can be used as collateral for the
LOANABLE AMOUNT (loan principal + interest).
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 services availed in AGMANA Credit Cooperative
I. A member can avail of a loan amount that will exceed 50,000 as long as secured collateral
is presented (example: lot title in the name of the member, OR/CR of the vehicle). For a
member to avail of other loans with no collateral, the policy on co-maker shall be followed.

II. In the above, the capacity to pay the member shall be considered. (In case when the
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 1st warning letter for delinquency will be issued after 5 days of nonpayment, a second
warning letter will be issued after a week before the due date, and a third warning letter with
a 5% fine shall be imposed monthly on all loans if not paid after the specified maturity plus
10 days grace period from the due date.
(4) Members are required to attend a Loaning/Ownership Seminar before the release of the
loan. The seminar is valid for two (2) years. Members with default in the payments of loans
shall undergo counseling by the Credit Committee.
(5) There will be an allocated amount for each loan based on the budget for the year.
(6) The policy guidelines including interest rates shall be subject to review by the Board of
Directors and Credit 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 AGMANA Credit Cooperative not included in the
above loan eligibility shall be implemented under its specific loan guideline.

REGULAR LOAN GUIDELINES

(For members)

I. OBJECTIVE
To provide financial assistance to members

II. CRITERIA FOR ELIGIBILITY

The applicant has been a member for at least a month and with a minimum of
₱1,000.00 paid-up share capital and updated share capital contribution. The maker
must be in good standing for at least a year.

III. LOAN FEATURES

(a) Loan Principal:
i. FIRST LOAN:
-Newly members can avail of a regular loan within the allotted amount of 5,000-10,000
depending on the share capital that the member will use as collateral for the loan. The loan
amount of 20,000 and above must at least have a share capital of 5,000.

ii. SECOND LOAN

 - will depend on the transaction record of the member if they can avail a higher
amount or suspend their account. For the associate member, they need to meet the
required share capital and maintain a balance in a savings account in order to avail
of a higher amount with a minimum of 10,000 of loan.
iii. THIRD
- will depend on the transaction record of the member if they can avail a higher
amount or suspend their account. For the associate member to avail of the third
loan must need to apply as a regular member.

(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 delinquency with a third warning letter issued by the
cooperative in the current loan shall not have the privilege to renew for the next loan stage or
suspension of the account. Renewal is allowed provided that the computation of the loanable
amount shall be based on the first loan stage and may be approved by the Board of Directors
or Credit Committee.
iii. Issuance of post-dated checks for payments (may be preferred by those who have the
means to issue checks) will have a contract to sign for legal purposes.

(c) Criteria For Evaluation

1. Repayment period shall not exceed at least 10 days after the due date.
2. 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.
3. To avail of a loan above One Hundred Thousand Pesos (₱100,000.00), the applicant must
have collateral, pass the evaluation process of credit investigation, and must be engaged in a
profitable business within the area of operation for the last two (2) years.
4. Interest of 3%, add-on, diminishing balance
5. Service fee of 2% and a Legal Fee of P100.00 shall be added to the interest.
6. Capital build-up of one percent (1%) shall be collected after a year.
7. Co-makers: Two (2) co-makers for loans P100,000 and below;
(D) Documents needed are:
i. account number of the member/passbook;
ii. xerox copy of Identification card, Barangay clearance and cedula.
iii. Xerox copy of bills paid (Electric bill/water bill)
iv. Xerox Copy of Business permit or DTI.
(F) Processing Period: Three (3) days after issuance of CI report and submission of all
requirements
(E) Approval: At least two (2) members of the Credit Committee after the evaluation or CI
(Credit investigation) for eligibility of loan, the General Manager and BOD.