Loans are designed to cater to the needs and wants of the members.
Regular Loan Productive (RL- Prod) - for business or commercial ventures.
Regular Loan Providential (RL – Prov) for the satisfaction of human wants, such as purchase of luxury cars, appliances and the like.
Regular Agricultural Loan
Farmers in their efforts to feed the people, the following agricultural loan subtypes are established. These loans are designed to be paid upon harvest and to help spur the countryside agricultural activities, viz;
Rice and Corn Crop Loan - a “short-term” loan (6 months to pay) designed to finance a single-cropping cycle.
Sugar Cane Crop Loan -12 to 15 months term (planting to harvest).
Cassava Crop Loan - 12 months term.
Other Crop Loan -For Other crops such as vegetable growing, mango blooming, goat raising, etc. 36 months term payable every 6 months.
Agricultural Lot Purchase - designed to help member- farmers acquire farm lots of their own.
Aqua Culture Loan - For prawn and fish culture payable in 6 months.
Livestock Loan - limited to hog-raising for select beneficiaries. Maximum term is 4 months.
Small Enterprise Assistance Loan - to finance credit needs of FICCO’s entrepreneur- members.
Repackaged Special Business Loans – available for Class “A1” and “A1+” members whose business track record is more than three years.
Commercial Credit Line - For member – entrepreneurs whose credit needs depend on projects and purchase orders (standby credit line) service for Class “A1+”, “A1” and “A” members.
Vendors-Drivers Assistance Loan - for members who are ambulant vendors, motor-rela or Jeepney drivers.
Appliance Loan - For purchase of household appliances including computers of members with two year- term.
Motorcycle Loan - For purchase of brand new or surplus motorcycle units. This is the only loan facility of FICCO where no definite maximum amount is set. The maximum limit of this loan is the price of a 200cc motorcycle.
Motor Vehicle Loan - for commercial or personal vehicle needs of our members. Maximum term is 96 months.
Heavy Equipment or Machinery Loan – For purchase of tractors, medical /dental equipments, lathe machines, and the likes.
Cell phone Loan - payable in 12 equal monthly amortization.
Neo TV Services - The loanable amount is the prevailing price of the unit but not to exceed the loan ceiling of Appliance Loan. Maximum Term of 24 months.
Travel Loan Package
Travel & Tours Loan - to finance members’ travel expenses with repayment terms of up to 36 months.
Special Travel & Tour Loan - to help members avail additional deposits as show money for those who intend to travel to countries that need such requirements.
Housing Assistance Loan - for housing improvement and repair with a maximum of amount of P 2 million payable in 60 equal monthly installments.
House Construction Loan - Lot where the house is to be constructed must be owned and titled in the name of the borrower.
Condo/ Apartment Acquisition Financing - The Condo/Apartment is ready for occupancy and transfer, however, separate title is not yet ready.
First Home Housing Loan
- Can cover only the first housing/condo unit that member will own.
- Interest rate at 8% effective, no service fee, provided the loan value of the housing/condo unit, including the lot, plus the deposit equity fully covers the loan exposure; uncovered loan exposure can be covered by PDC or additional REM or assignment of deposits.
- For brand new housing or condo units, the loan value can be computed at 60% of fair market value;
- Interest rate: subjected to review every two years.
- Not subjected to patronage refund, considering its concessional rate.
Rice Loan -1 to 2 sacks payable in 1 month; 3 to 10 sacks payable in 1 week.
Gift Check Loan - members must maintain savings deposit of not less than P 10,000.00 .
Medical Loan - for hospitalization and medicines up to P 50,000 payable in 36 equal monthly installments with 1% service fee per month.
Dental Loan - For tooth extraction, braces/filling or cleaning.
Newborn Screen Test - For members with newborn children that need to be screen tested but don’t have cash to pay such test may avail of this service.
Other Loan Services
Educational Loan - For payment of educational expenses of members or dependents. Proceeds of the loan is payable to the school, or in case of books or uniforms, the same will be payable to the supplier.
Salary Loan - Employed members could make use of this product for their personal needs. A memorandum of agreement between FICCO and the member’s employer shall be prepared and signed before the loan is approved
Petty Cash Loan - Perhaps one of the best selling loans of FICCO, because it is an “instant” loan, this is an over-the-counter loan facility, where members can avail based on their share capital bracket with maximum term of six months.
Calamity - Members who were affected by calamities can avail this loan. All they have to do is to present documents supporting their claim and verified by a competent FICCO staff. This loan is based on individual member’s classification.
Memorial Lot &/or Services Loan - FICCO has acquired memorial lots with the Pryce Gardens and is selling these lots together with the maintenance package. FICCO members are enjoined to avail this service in order for them to benefit in the lower prices of the package.
LAD, LATD or LARS/IS - These are basically back to back loans secured by the member’s deposits. These are also referred to as instant loans because of its fast processing and releasing.
New Loan Policies
RESOLUTION NO. 01-18-2016. Dir. Ferrer moved and seconded by Dir. Ybaήez and Dir. Espiga to amend BOD Resolution No. 09-463-2012 re new loan package for FICCO employees with the new terms and conditions:
|Type of loan :||Special Employee Loan Package (SELP)|
|Term :||180 months maximum (15 years)|
|Amount :||P1,000,000.00 maximum|
|Interest :||No Service Fee|
|Collateral :||Real Estate|
|LPP :||P1.08/1000/month payable annually based on outstanding balance|
That in case of retirement of the employee before the maturity of the loan or if there is still an outstanding balance upon retirement, the SELP balance shall not be deducted, provided, that the collateral is offered to secure the loan.
- The employees must have more than five (5) years of satisfactory service with FICCO;
- That this loan package is extended only to employees who experience extreme medical emergencies where the existing government and FICCO medical benefits are not enough to cover the expenses;
- That any monetary claim of the employee from SSS, ECC, FICCO and employees donations as regards to his sickness must first be applied to the advanced amount after which the balance is converted into a loan;
- That the employee must have a monthly net take home pay of not less than P3,000 after deducting the monthly principal and interest amortization of the loan and his/her other loans;
- That all other applicable FICCO Loan Policies shall apply;
- That this loan shall be subject to approval of the Board;
RESOLUTION NO. 01-29-2016. Yaήez moved and seconded by Dir. Abrogar and Dir. Cabahug to adopt the additional drafted Special Power of Attorney in the matter of additional requirements for approval of loans needed real property collateral, to wit:
WHEREAS, The First Community Cooperative has been providing financial assistance to its members through the different loan services it has extended;
WHEREAS, In order to guarantee payments of these loans especially those reaching a particular ceiling, it has been a FICCO policy to required the member-borrower to put up a collateral in the form of a real property;
WHEREAS, FICCO found out in some transactions that the real property executed as collaterals is not owned by the member-borrower but belongs to some other person or entity, hence a conflict arise upon the maturity of the obligation, collection and foreclosure of the property;
WHEREAS, In order to avoid such conflict and to maintain FICCO’s liquidity through the guaranteed payments of these loans, additional requirements is hereby needed and adopted;
NOW THEREFORE, BE IT RESOLVED, that by the power vested upon by the Articles of Cooperation and By-Laws, the Board of Directors hereby adopts the following additional policies for loans requiring collateral of which the ownership does not belong to the member-borrower:
1. A Special Power of Attorney must be executed by the owner of the property in favor of the member-borrower stating therein the specific description of the property and the authority given to the member-borrower to mortgage the property.
2. The owner of the property against which the obligation is secured must also be a FICCO member;
3. However, if the owner of the property is not a FICCO member, she/he should be required to purchase preferred shares and shall be treated as a special depositor;
4. The owner of the property must also become one of the co-makers of the loan/obligation. This is the exception to the FICCO policy that only members can become co-makers.
- RESOLUTION NO. 01-032-2016. Ybaήez moved and seconded by Dir. Cainoy to approve the new price for the double internment rights of 50 units memorial lots with Pryce Corporation, thus:
|Cagayan de Oro City||P10,500||P 11,000|
- RESOLUTION NO. 01-033-2016. Cabahug moved and seconded by Dir. Yaήez to approve the reduction on interest charges by 50 basis points to multiple loans of G-Cash/Power Pay users. Duly approved.
- RESOLUTION NO. 01-034-2016. Ybaήez moved and seconded by Dir. Yaήez and Dir. Daba to include the Traders/Buyers in the Credit Line Facility for Winrock beneficiaries with the following terms and conditions:
Classification of Member Deposit Equity:
- Deposit equity will depend on member classification
- Increasing number of Winrock-PCCP Farmer Producer engaging in different commodity production, resulting to the increase of the Traders/Buyers financial needs.
- Some of the Farmer-Growers are also expanding the commodity production.
- This loan is non-cash facility.
- A borrower must be a regular FICCO member;
- Must have undergone entrepreneurial or business management training introduced by Winrock – PCCP/FICCO;
- Must be engaged in buying in different commodity product produce in the region and supplying of commodity product for two (2) years;
- Maximum loan amount of this product line is P500,000.00;
- Term of loan for this facility is twelve (12) months;
- The borrower can avail reloan after 25% balance from the principal amount;
- Interest of 0.67% per month for8 months, or 13% per annum for over 8 months;
- Service Fee is 1% one-time;
- LPP of P1.08/1000 per month to be added to the loan facility;
- To issue PDC as security of the loan;
- Mode of payment shall be monthly; (12.5% principal+interest) for 8 months or monthly amortization for 12 months + corresponding interest;
- Borrower must have an existing product outlet store with the necessary permits;
- Other loan/s , if any, with FICCO and outstanding payable to PCCP beneficiary, must be updated;
- All other policies consistent with FICCO credit policies shall apply.
Releases and Implementation:
- The borrower shall sign in the Disclosure Statement and with the proceeds of his/her duly approved loan, indicated on the Promissory Note and Disclosure;
- The proceeds of the borrower’s loan shall be credited to Special Savings Account of the member (Trader/Buyer), this is non-withdrawable, however, the Accounting Department will debit the payment to the grower/producer, or in no way cannot be released/withdrawn by the borrower;
- FICCO Accounting Department will process the payment after the Trader/Buyer billing statement will be submitted to FICCO Office;
- Check payment in the name of the grower/producer as indicated in the billing statement;
- Schedule of check releases should be done two (2) days after the submission of the billing, following the issuance of the Official Receipt in the name of the grower/producer.
- RESOLUTION NO. 04-113-2016. Cabahug moved and seconded by Dir. Ybañez to approve the amendment to BOD Resolution No. 02-051-2016 specifically on the effectivity for Savings Deposits only from March 1, 2016 to April 1, 2016 (The giving of interest on deposits is on a quarterly basis). Duly approved.
- RESOLUTION NO. 04-114-2016. Laguna moved and seconded by Dir.Yañez to amend Resolution No. 07-414-2015 which shall be stated: “That the Globe Customized Business Plan of FICCO Plan 125 and Plan 325 under Resolution No. 05-273-2015, instead of Cell Phone Loan, it shall be classified as Inventory, similar to Gift Checks and Rice Inventory.” Duly approved.
- RESOLUTION NO. 04-115-2015. Yañez moved and seconded by Dir. Ybañez to amend Resolution No. 05-246-2014 which shall be stated: “To allow members who avail more than three (3) days grace period but not beyond the month-end to retain their membership classification; provided, that penalty will be imposed.” Duly approved.
- RESOLUTION NO. 04-116-2016. Laguna moved and seconded by Dir. Yañez to approve the recommendation for Class A, A1 and A1plus members to attend the loan briefing every two (2) years. Duly approved
- RESOLUTION NO. 04-117-2016. Veronilla moved and seconded by Dir. Yañez and Dir. Laguna to allow re-loan to Class B re-loan, A, A1, A1plus members for less than one (1) year payment with no requirements needed; provided, that the amount of loan will be the same. Duly approved.
1. RESOLUTION NO. 04-150-2016. Yañez moved and seconded by Dir. Ybañez to amend Resolution No. 09-464-2012 re: New Service Fee Rates for MVL only which shall now be stated as follows:
- One-time service charge of P3,000 or 1% whichever is higher;
- Deposit equity;
- Effective interest rate;
- If all charges are paid in cash
- The maximum MVL Portfolio should not be more than P200,000,000.00
2. RESOLUTION NO. 04-151-2016. Cabahug moved and seconded by Dir. Rana to amend Resolution No. 405-2009 re: reducing MVL deposit equity if used for productive purposes which shall now be stated as follows:
|Deposit Equity||Class A1||Class A||Class B (re-loan) at least 1 year as member|
3. RESOLUTION NO. 04-152-2016. Yañez and seconded by Dir. Ybañez to amend Resolution No. 53-1994 re: terms and conditions on Motorcyle Loan which shall now be stated as follows:
|a) Loanable amount is the cash price of the unit which should not exceed of 200cc||a) Loanable amount is the cash price of the unit|
4. RESOLUTION NO. 04-153-2016. Cabahug moved and seconded by Dir. Ybañez to amend the existing Policy on Deposit Equity for Productive Loan or SEAL with Real Estate as collateral which shall be stated as follows:
|Class A, A1, A1 plus - 33.33%||Class A1 & Class A1 plus – 10%Class A - 15%|
5. RESOLUTION NO. 04-154-2016. Ybañez moved and seconded by Dir. Yañez to amend the existing Policy on maximum loan ceiling without collateral which shall be stated as follows:
|Classification||Loan Ceiling Amount||Co-Maker||Rationale|
|FTTB, B re-loan||50,000||1 (Class A, A1, A1+. B)||Petty cash|
|B re-loan||100,000||2 (Class A, A1, A1+, B re-loan)||can now be|
|Class A||100,000150,000||1 (Class A1+, A1, A, B re-loan)2 (Class A, A1, A1+, B re-loan)||availed up to P50,000|
|A1+, A1||150,000200,00||1 (Class A1+, A1, A. B re-loan)2 (Class A, A1, A1+, B re-loan)||without co-maker|
6. RESOLUTION NO. 04-155-2016. Cabahug moved and seconded by Dir. Rana and Dir. Ybañez to amend BOD Resolution No. 02-063-2014 re: basis in granting Loans Against Deposits which shall be stated as follows:
- For Loan Against Share and/or Savings or Loan Against Time Deposits:
|Deposit Amount||Allowable Percentage|
|Below P100,000.00||90% of unencumbered share/savings/TD|
|P100,000.00 and above||95% of unencumbered share/savings/TD|
- For Loan Against Retirement/Installment Savings:
|Below P100,000.00||90% of unencumbered RS/IS excluding interest|
|P100,000.00 and above||95% of unencumbered RS/S excluding interest|
7. RESOLUTION NO. 04-156-2016. Yañez moved and seconded by Dir. Ybañez to approve the implementing guidelines on BOD Resolution No. 04-117-2016, as follows:
- Loans must not be in arrears at the time of the re-loan;
- The renewal of the loan should be availed once; provided, that if the member will apply for a second re-loan, the original policy shall apply;
- The existing re-loan policy of 45% to 65% re-payment policy shall not apply.
8. RESOLUTION NO. 04-157-2016. Ybañez moved and seconded by Dir. Cabahug to approve the addendum to BOD Resolution No. 12-706-2012:
For STAR Regular
- Loan Protection Plan per P1,000 per month – P1.08 (single account;) P1.12 (joint account);
- Effective interest is 10% per annum, maximum of 12 months;
- Maximum amount of P50,000.00;
- One (1) co-maker;
- Can be availed over and above the existing loans but should not exceed FICCO loan ceiling;
- Other loans, if any, must be up-to-date or updated;
- Other policies consistent with FICCO Credit Policies shall apply;
- Maximum of 3 times availment only.
|Loan Term||Interest||Service Fees|
|1 to 6 months||8.0% p.a.||1.00% for the whole term|
|7 to 12 months||8.0% p.a.||1.75% for the whole term|
|13 to 24 months||8.5%p.a.||2.25% for the whole term|
|25 to 36 months||9.0% p.a.||3.25% for the whole term|
|37 to 48 months||9.5%p.a||4.50% for the whole term|
|49 to 60 months||10% p.a.||5.50% for the whole term|
|61 to 96 months**||10% p.a.||5.50% for the whole term|
|Crop type||Term (Max)||Mode of Payment||Interest||Service Fee|
|Rice & Corn Production||6 months||Lump Sum||6.50% for 6 months||2.00%|
|Sugar Cane||15 months||Lump Sum||13.0% p.a.||5.00%|
|Cassava||12 months||Lump Sum||13.0% p.a.||5.00%|
|Others Crops||12 months||Every 6 months||13.0% p.a.||5.00%|
|Aqua Culture||6 months||Lump Sum||6.50% for 6 months||2.00%|
|Term (months)||Interest (per annum)||Service Fee (1-time)|
|Less than 12||8.0%||1.00%|
|13 to 24||8.5%||2.25%|
|25 to 36||9.0%||3.25%|
|37 to 48||9.5%||4.50%|
|49 to 60||10%||5.50%|
|61 to 90||10%||6.50%|
|91 to 120||10%||7.50%|
- If equity is share capital only – 10% effective interest rate.
- If equity is savings only – savings interest rate plus 2%
- If equity is a composite of share and savings – Interest rate will be the average rate of the composite deposits plus 2%
|Class A1 +||For Regular Loan||Multiplier|
|If savings is greater than 60% of Encumbered Deposit||x400%|
|If savings is between 60% of Encumbered Deposit||X400%|
|If savings is between 45 to 59% of Encumbered Deposit||X300%|
|For Seal & Halo|
|If savings is greater than 40% of Encumbered Deposit||x400%|
|If savings is between 20 to 39% of Encumbered Deposit||x350%|
|If savings is less than 20%of Encumbered Deposit||x300%|
|Class A1||For Regular Loan||Multiplier|
|If savings is greater than 60% of Encumbered Deposit||X350%|
|If savings is between 45 to 59% of Encumbered Deposit||x325%|
|If savings is less than 45% of Encumbered Deposit||x290%|
|For Seal & Halo|
|If savings is greater than 40% of Encumbered Deposit||X350%|
|If savings between 20 to 39% of encumbered deposit||325%|
|If savings is less than 20% of encumbered deposit||x290%|
|Class B||Total Share||X190%|
|Class C||Total Share||X165%|
|Class D||Total Share and Savings||150%|
|Class E||Total Share and Savings||100%|