Loan Services
TYPES OF LOANS
- Petty Cash Loan. A loan which could be availed by members in good standing (MIGS) at any time during office hours for any purpose deemed beneficial.
- Emergency Loan. A loan offered by the Cooperative to members in good standing (MIGS) for emergency reasons.
- OFW Loan. A loan offered to MIGS with working VISA. Upon release of loan, a memorandum of agreement (MOA) done under oath should be duly signed by the OFW-member-borrower and the cooperative that the salary of the OFW be deposited in the account of DISADECO. Excess of the amortization will be disbursed to the family of the OFW.
- Education Loan. A loan offered to MIGS with children enrolled in any tertiary school and Technical Education and Skills Development Authority (TESDA) school.
- Housing Improvement Loan. A loan offered to MIGS who wish to renovate their homes. Victims of force majeure will be prioritized.
- Lot Purchase Loan. A loan offered to MIGS who wish to own an agricultural or residential lot. Deed of conditional sale shall be made between the member-buyer and seller as attachment of the loan application. Prior to release of loan, a deed of sale shall be made as an instrument for the transfer of ownership from the seller to the member buyer. Upon submission of the land title duly annotated in favor of DISADECO, the loan shall be released to the member-buyer in the presence of the seller.
- EC Gas Loan. A loan offered to MIGS who wish to maximize use of liquefied petroleum gas (LPG) by shifting from metal tank to fiber glass made tank of EC gas. Proceeds of the loan shall be equal to the amount needed by the member to patronize the EC gas. The loan ceiling is dependent on the number of EC gas tank the member wishes to purchase.
1. Crop Production Loan and Farm Input Loan. Loan designed to answer the needs of members in producing agronomic, horticultural and agro-forestry crops.
2. Animal Production Loan. Service to cater on the needs of members in raising, producing and breeding livestock.
3. Aquaculture. Service that answers the demand of MIGS in producing fishes in both fresh and brackish water.
4. Cottage Industries. Furniture, fossilized flowers, metal works.
5. Small Business Enterprise. Beauty shop, sari-sari store, vulcanizing shop
6. Medium Business Enterprises. Trading, merchandising, Rice Milling
7. EC Gas Franchise Loan. A loan provided to members who want to sell or distribute EC gas products within the cooperative’s distribution area.
1. Salary Loan. A loan provided to members receiving monthly rates either from government or private enterprise.
A loan provided to members engaged in business transactions using checks as medium of exchange.
- Appliance Loan. A loan availed by members who wish to furnish their homes after meeting all their basic needs.
- Cell phone Loan. For connectivity reasons for MIGS to remain in contact with their family members.
- Wedding Loan. A privilege loan for MIGS who already met their basic needs and wish to experience the joys of life.
- Birthday Loan. A privilege loan for MIGS who reach contentment and wish to provide joy for themselves and their love ones.
- Graduation Loan. A loan provided to MIGS whose children finished a degree. It enables thanksgiving ceremonies among MIGS and their families.
- Car Loan. A loan provided to members for mobility reasons. The loan enables the member experience the luxury of life while meeting their need to move around places.
- Travel & Vacation Loan. A loan provided to MIGS to unwind and roam around the world after years of being a family provider.
ELIGIBILITY & REQUIREMENTS FOR A LOAN
- Only members in good standing with at least ONE THOUSAND (1,000) PESOS paid-up Capital are eligible to apply for loans the Cooperative offers or may offer in the future provided that the required paid-up share capital and a collateral is sufficient to secure the loan.
- Members in bad standing enjoy limited loan privileges. Members in Bad Standing will be allowed to avail of a loan equivalent to their share capital. If they were able to pay their loan with no mispayments they will regain their status as members in good standing.
- The general requirements or criteria for availment of loans are :
- Member’s fixed deposit or share capital
- Length of membership
- Type of loan applied for
- Members Credit or Loan Status/standing
- Submission of required documents such as titles, latest tax receipt, latest tax declaration, sketch plan, PDC, photocopy of Appointment, latest payroll, authority to deduct.
- Co-makers with the pledge share capital
- Member’s capacity to pay
- Purpose of the Loan
- Barangay Clearance
- Petty Cash Loan and Emergency Loan. A member in good standing with at least ONE THOUSAND PESOS (P1, 000) paid up Share Capital.
- A collateral shall be required to all types of loan except for petty cash, emergency and salary loans. The only collateral accepted by the cooperative if the amount of loan applied for is more than the members paid-up share capital is Real Estate Mortgage. However, if the loan applied for is equal or less than his paid up capital, no collateral or co-maker is required. Approval of the loan is also ministerial and release of such loan shall be given the highest priority.
- The borrowing member automatically pledges his fixed deposit, present and future to secure his loan.
- As a general rule, Two (2) members in good standing are required as co-makers for every loan application in addition to his/her spouse. The co-makers shall pledge their unencumbered paid-up Capital, present and future to secure the loan of the principal debtor.
- When the borrower fails to pay, it is the duty of the co-maker to assist and ensure the payment of the loan, accrued interest, fines, and other incidental expenses. It shall therefore be the responsibility of the co-maker to remind the borrower and see to it that the loan is paid regularly. Management must furnish both the maker and co-maker collection notices.
- Chattel mortgage is no longer accepted.
- If certificate of title is not in the name of the member-borrower, a special power of attorney is required. Owner of the title will be required to sign the loan application as co-maker. Whether member or non-member, it is the responsibility of management to remind the member to update the SPA prior to renewal or to notify the owner of the title if the loan turns past due.
- Change of collateral for loans granted and partially paid may be allowed by the Board of Directors or the Management. However, the value of the new collateral offered as a substitute must be proper and sufficient to cover the remaining balance of the loan. Change of collateral is allowed if loan is current. A service fee of ONE HUNDRED PESOS (P100.00) shall be charged against the member-borrower for change of collateral.
- It is required that the tax payment of the property must be paid up-to-date. If the loan is still in force at the start of the fiscal year, the borrower should be up-to-date in his payment and shall submit the new receipt to the cooperative not later than the last working day of January.
- Deed of Mortgage covering loans beyond paid-up Share Capital will be required by the BOD to be registered with the Register of Deeds at the expense of the borrower.
- Post-dated checks can be accepted as collateral to Small Business Enterprises up to FIFTY THOUSAND PESOS (P 50,000.00) equally divided to the number of monthly amortization applied by the members but should not exceed twelve months. This means that the loan has to be amortized monthly and the sum total of the issued checks is P50, 000.00. In case a check payment returns to the cooperative due to insufficiency of fund, the member has to pay the amortization due. Failure to pay within seven (7) days makes the entire loan balance due and demandable. If the check returned is due to the closure of the current account, the entire loan balance is due and demandable. Failure of member-borrower to settle the returned checks entitles the cooperative to file charges in court.
- All past due loans shall be paid before a member can avail of any loan. All penalties and surcharges shall be collected. Condoning of penalties and surcharges is strictly prohibited. Any officer who approved condoning shall pay amount condoned and will be dealt with accordingly.
- Salary Loan
-
Only members in good standing who are regular employees of institutions and whose head of office/disbursing officer are willing to sign an agreement with the cooperative are eligible for Salary Loan.
- Member has a take home pay of 5,500 or more.
- Photocopy of latest payroll
- Photocopy of Appointment
- Memorandum of Agreement or Authorization to deduct. Without the MOA or Authority to deduct , the member is required to submit collateral or postdated checks which then follows the procedure for securing loans with collaterals
- Salary Loans are obliged to be monthly amortized.
- Rediscounting of Checks
Only members in good standing whose transactions utilize checks as medium of exchange with paid up capital more than ten thousand pesos.
- Business permit
- Postdated checks
- Real Estate Mortgage
- Self- Actualization Loan
Only MIGS whose basic needs are in place as assessed by management are privileged to avail of self-actualization loans.
- MIGS whose children finished a degree.
- MIGS whose children are gainfully employed.
- MIGS who retired from service and are enjoying their retirement.
Specific Terms for the Providential Loans
TERMS | PETTY | EMERGENCY | Regular and Other Providential Purposes | |
|---|---|---|---|---|
Maximum Loan Amount | 3,000.00 | 10,000.00 | Maximum of P3,000,000.00 secured | |
Loan Term | One month | 4 months | Maximum of 5 years | |
Filing Fee | 50.00 | 50.00 | 50.00 | |
Notarial Fee | - | - | 100.00 | |
Service Charge | - | 1.5% | Base on loan term | |
Interest per month | 1.5% | 1.5% | 1.5% | |
LRF Contribution | - | - | P1.35 per 1,000 per month | |
Mutual Aid Contribution | - | 50 per loan until paid P500 | 50 per loan until paid P500 | |
SARANAY | - | 100 per loan until paid P500 | 100 per loan until paid P500 | |
Share Capital Deposit | P50.00 | 2% if CBU < 50,000 | 2% if CBU < 50,000 - P250.00 | |
Penalty per month | 2 % | 2 % | 2 % | |
Other Conditions | Cannot be renewed | Cannot be renewed | Renewable |
Specific Terms for the Production Loans
TERMS | Crop Prodt’n Rice, Corn | Swine Fattening | Swine Breeding | Goat / Sheep | Fish Culture | Cattle Raising Cattle | Cottage Industries | Small Bus. Enterprise |
|---|---|---|---|---|---|---|---|---|
Maximum Loan Amount | 50,000 per hectare | P4,500 / head | P7,500 / head | P1,500 / head | 4xCBU (P4/fry,5 fries/m2 | P20,000 / head | P50,000 | P50,000 |
Loan Term | 6 months | 6 months | 1 year | 2 years | 6 months | 2 years | 1 year | 6 months |
Filing Fee | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 | 50.00 |
Notary Fee | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 | 100.00 |
Service Fee | 1.5% | 1.5% | 2% | 3% | 3% | 3% | 2% | 1.5% |
Int/mo. | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% | 1.5% |
LRF premium/ month | P1.35 Per 1,000 | P1.35 Per 1,000 | P1.35 Per 1,000 | P1.35 Per 1,000 | P1.35 Per 1,000 | P1.35 Per 1,000 | P1.35 Per 1,000 | P1.35 Per 1,000 |
Mutual Aid Contrib. | 50 until P500 is paid | 50 until P500 is paid | 50 until P500 is paid | 50 until P500 is paid | 50 until P500 is paid | 50 until P500 is paid | 50 until P500 is paid | 50 until P500 is paid |
Share Capital Deposit | 2%a OR P1/day* | 2%a OR P1/day* | 2%a OR P1/day* | 2%a OR P1/day*
| 2%a OR P1/day*
| 2%a OR P1/day* | 2%a OR P1/day* | 2%a OR P1/day* |
Penalty | 2% /month | 2% /month | 2% /month | 2% /month | 2% /month | 2% /month | 2% /month | 2% /month |
CONDITIONS
- A Farm Budget Plan shall be required for borrowers of production loans indicating therein the calendar of activities and the corresponding budget requirements.
- The project will be monitored by a staff to verify the location and existence of the project.
- Borrowers’ equity such as pens, housing, fences, ponds, etc, is/are required depending on the requirements of the projects.
- The release of Loans proceeds shall be made on a staggered basis based on the submitted Farm Plan and Budget.The repayment of production loan shall coincide with the time of harvesting and/or selling of the product.
TERMS | Salary Loans |
|---|---|
Maximum Loan Amount | P 100,000.00 |
Loan Term | 10, 12, 18, 24 months |
Filing Fee | P 50.00 |
Notary Fee | P100.00 |
Service Charge | Base on term |
Interest | 1.5 % /mon (50% pre-deducted) |
LRF Contribution | P1.35 per 1,000 per month |
Mutual Aid Contribution | 50 per loan until paid P500 |
Saranay Contribution | 50 per loan until paid P500 |
Share Capital Deposit | - 2% if CBU < 50,000 - P1/day (CBU > 50,000) |
Penalty per month | 2 % |
CONDITIONS
- A collateral is required if there is no authorization to deduct
- Only members with a Monthly Net Take Home Pay of P5, 500 are eligible to apply.
- Only members with a Monthly Net Take Home Pay of P15, 000 can avail P100, 000.