LENDING COMMITTEE (LC) POLICIES
FOR FY 2022
1. Starting FY 2022, loan forms will be accomplished in three (3) copies
and properly accomplished by the borrower. 1 copy for the LC, 1 copy
for the BoDs, 1 copy for BESTCO. Approval of loans will be based on
the completion of forms, availability of funds, and the first-file, first-
serve basis will always be followed. With these three regulations, loans
will be granted within the same date of filing or to the soonest possible
time.
2. Approved loans will be released to the borrower bounded by the terms
and conditions of the cooperative and borrower/s will always be
provided with a copy of his/her loan details.
3. Monthly amortization automatically starts on the following month prior
to the date of release whether it is a new loan or renewal of loan. Due
dates of all monthly amortization will be on the 15 th to 20th of the
month as it was the usual release of teachers’’ monthly salary.
4. First month interest will be automatically deducted from the release of
loan as stated in the computation given by the BoDs New Policies on
Loans. To reiterate, first month amortization excluded the monthly
interest as it was the date when a biggest amount of payment takes
place.
5. In case that a borrower failed to pay his/her monthly amortization in
two (2) consecutive months, he/she will be reprimanded by the LC and
will be given notification. The borrower needs to pay the three (3)
monthly amortizations on the preceding month to suffice his/her lack of
payment. Failure to do so (paying the two lacking months) will be
subject for a sanction – issuance of a red card. Red card quantifies 1
demerit and will be the basis for tagging as a member not in good
standing (NGS). 3 demerits will automatically fall a member into NGS
and hamper all his/her rights and privileges in the cooperative.
6. After the 12-month term, and there are cases that any borrower failed
to pay his/her monthly amortization due to practical reasons, LC will
prepare a report which will be forwarded to the BoDs and a contract of
acknowledgement will be signed by the LC, BOD Chair and the
borrower stating the three-month grace period. After a three-month
grace period and the borrower still did not comply with the signed
agreement, BoDs will decide for the next legal steps.
LC SUGGESTIONS:
1. 2% savings will be fix into an amount of __________
2. Section VIII – Provision
A. Appeal on account date
3 to 5 months, make it 2 – 3 months po
