LOAN GUIDELINES

 MPPCC Loan Policies and Guidelines

 1. General Objectives:

Provide Financial Assistance: Offer loans to members based on their financial needs and encourage responsible usage of these resources.

Risk Management: Safeguard the cooperative’s assets by minimizing risks associated with unsecured loans.

 2. Membership and Loan Eligibility:

Initial Eligibility: Members are eligible for loans after three months of membership with at least ₱10,000 in paid-up share capital.

Further Eligibility: Access to specialized loans like Salary, Business, or Appliance Loans is available after one year of membership, depending on the member's share capital.

 3. Comprehensive Loan Rules:

Approval Process: The Credit and Collection Committee must approve all loans. Loans concerning committee members, managers, or directors require approval from the Board of Directors.

Collateral Requirements: Up to 100% of a member's Share Capital can be pledged as collateral.

 Specific Loan Programs:

Emergency Loan

Purpose: Provide quick financial aid for emergencies.

Maximum Amount: ₱15,000.

Repayment Term: 12 months.

Service Fee: 1% deducted upfront.

Interest Rate: 1.0% per month, diminishing balance.

Eligibility: At least three months of membership and ₱10,000 in share capital.

 Hospitalization Loan

Purpose: Cover medical and hospitalization expenses for the member and immediate family.

Maximum Amount: ₱20,000.

Repayment Term: 24 months, beginning one month after disbursement.

Interest Rate: 1.0% per month.

Service Fee: 1.0%, deducted upfront.

 Salary Loan

Purpose: Offer financial assistance at competitive interest rates and favorable terms.

Maximum Amount: ₱100,000, calculated based on salary and share capital.

Repayment Term: Up to three years.

Interest Rate: 6.5% per annum, diminishing balance.

Eligibility Criteria: Employment at an institution with a Memorandum of Agreement for salary deduction with the cooperative.

 Business Loan

Purpose: Support member’s business ventures or operational capital needs.

Maximum Amount: ₱300,000.

Collateral: Mandatory for loans over ₱100,000 unless under salary deduction scheme.

Interest Rate: 6.5% per annum, diminishing balance.

Eligibility: Engaged in a profitable business within the cooperative's operational area for at least two years.

Car Loan

Purpose: Financial assistance for purchasing new vehicles.

Collateral: Vehicle registration and official receipt.

Repayment Term: Up to five years.

Interest Rate: 6.5% per annum, diminishing balance.

Eligibility: Members must have sufficient net pay and be in good standing, and the vehicle must be insured.

These guidelines are designed to be comprehensive yet specific, providing all necessary details to ensure members are well-informed about their borrowing options, the criteria they must meet, and the terms associated with different types of loans offered by the MPPCC.