CO-MAKER

  The Co-maker/ Guarantor must also possess the minimum qualifications of a legitimate borrower. The Co-maker/ Guarantor must understand that by agreeing and signing the Loan Application and Promissory Notes. They lawfully commit themselves to conditionally answer for the payment of the Borrower’s obligation when due and demandable. Co-makers are waived in the initial implementation as requested and awaiting due notice.

LOAN SUPERVISION

  The Credit Committee has General Supervision over all loans with the Cooperative. In the evaluation of all Loan Application, the Credit Committee and Loan Staff must satisfy themselves that every loan promises to be of benefit to the borrower. However, it is also their duty to see to it that the Fund of the Cooperative is protected by inquiring carefully into the haracter and determining the capacity and financial condition of the Borrower and Co-maker.

  The Credit Committee and Loan Staff shall exercise utmost care in the appraisal of collaterals offered. The Credit Committee shall be decided within seven (7) working days from the date of submission of complete requirements upon the loan’s approval.

DEDUCTIONS

There will be a loan deduction for every loan application. This deduction is beneficial for the Cooperative and of the members. The following are loan deductions:
  1. Processing fee
  2. Mandatory savings
  3. Advance interest
  4. Credit shield
  5. Subscribe capital (if not fully paid)

MODE OF PAYMENT

  All payment must be made through post-dated check. The member-borrower will issue post-dated check corresponding to the terms applied and approved by the Credit Committee. For emergency loan, no need to present post-dated check.

LOAN RELIEFS

  A. Grace period: A grace period of 30 days after the loan approval.
  B. Extension of loan payment: The loan payment may be extended thru a written request of the borrower to the Credit Committee.

PENALTIES

  Loans shall be considered default after FIVE days (5) upon payment maturity. A written demand shall be sent to the Borrower and Co-maker and the date of default. The Borrower and Co-maker may opt to settle the account without penalties within SEVEN days (7) working days upon default. Loans are subject to penalty after SEVEN (7) working days upon default date.

  LATE PAYMENT: TWO PERCENT (2%) of the amount due per month.
  FOR DEFAULT ACCOUNTS: SIX PERCENT (6%) of the total amount due compounded monthly.

APPLICATION PROCEDURES

The following are the application procedures for members securing a loan:

  1. Fill-up on line application form and submit to Credit Committee or Loan Staff:
  2. Loan staff or General Manager receives the loan and submits it to Credit Committee.
  3. Credit Committee checks for loan and payment standing, (coordinate with the Treasurer if necessary) and background checks the applicant.
  4. Credit Committee approves loan, affixes signature on application form and submits to the Chairman for final approval.
  5. The Chairman will approve the loan application and forwarded to the General Manager or Loan Staff for preparation of check voucher, promissory note (to be signed by the borrower and co-maker), and other documents
  6. Applicant the verify loan status regularly with the Loan Staff. If application is approved and available, the corresponding Loan Staff releases the Loan proceeds.

  The process of approval and releasing must not exceed SEVEN (7) working days unless funds are not available. In that case, the applicant shall be duly notified and scheduled if deemed necessary.

OTHER PROVISIONS

  These set of guidelines/policies are set forth by SEAMCO cooperative for the purpose of effectively providing Quality and Competitive Loan Services to members. Any changes to the above guidelines shall be publicly announced and posted.

EFFECTIVETY

  This policy is approved on February 9, 2019 during the 2nd Board of Directors Meeting at SEAMCO Office. This policy will be effective on April 1, 2019.