2. The borrower must have a minimum share capital of fifty thousand pesos (P50,000) or at least 20% of the principal amount of the vehicle loan, whichever is higher.
3. Maximum loanable amount for Brand New vehicle is P1M and for second hand is P500,000 or purchase price, whichever is lower, based on net proceeds after deducting regular loan charges (see item 7 below). Maximum paying period is 5 years or 60 months.
4. Vehicle loan amortizations plus all other coop loan deductions should not exceed 25% of the gross salary of the borrower. Provided further, that the net take home pay per pay period shall not be less than P5,000.
5. Chattel Mortgage agreement and Deed of Sale between the borrower and the Cooperative are required.
6. Original Certificate of Registration under the name of the borrower must be surrendered to the Cooperative within two months from loan release date. This will be returned to the borrower after full payment of loan. Failure to comply with this requirement, even if monthly payments are met, will affect the member’s good standing status.
7. The following charges are deducted: a) Savings build-up: 5% of applied loan; b) Service fee: 1% of applied loan; c) Filing Fee: P500; d) Members’ benefit fund contribution at 0.75% of applied loan multiplied by number of year/s to pay.
8. Payment shall be made through payroll deduction.
9. Penalty of 0.5% per month shall be charged on the outstanding balance due to delayed payment;
10. This loan is not renewable but may be paid in full or deducted from other loans, without rebates.
11. Procedure in applying for a loan: a. Submit this accomplished form, Chattel Mortgage agreement and Deed of Sale, together with the loan insurance form, to the Credit Committee. b. If approved, the check will be issued directly to the seller or dealer.
NOTE: Loan will be processed in seven working days. There is no exception to this loan policy.
