Objectives

This policy provides guidelines governing the approval, processing and collection of loans receivable from members of Ayala Multi-Purpose Cooperative (the Cooperative). The policy is drawn from CDA Regulations, pertinent provisions of the Cooperative’s By-laws, and policies and procedures approved by the Board of Directors for the orderly implementation of Cooperative programs and services.

I. Eligibility Criteria

1. Only members of good standing can avail of the credit services of the Cooperative.  To be a member of good standing, the following must be met:
   1. The borrower has to be a bona-fide Regular or Associate member of the Coop.
   2. The borrower has fully paid the Minimum Share Capital of TWO THOUSAND PESOS (Php 2,000.00) and Membership Fee of TWO HUNDRED PESOS (Php 200.00).
   3. The borrower has no default on any outstanding loan to the Coop.
   4. The borrower is an Active member, i.e., committed to a regular semi-monthly share capital contribution.
2. Generally, members with past due loans are disqualified from availing new or other types of loans. However, members may be allowed to apply for a loan provided all arrears and penalty charges are deducted from the proceeds of the new loan or paid over the counter.

II. Loan Entitlement

1. Each company has their own internal guidelines in terms of net cap and loan eligibility. In the absence of internal guidelines, the Cooperative’s general guidelines on loan entitlement of regular members will be followed.
2. Associate Members are entitled to borrow up to 90% of their share capital in the Cooperative.
3. No two (2) loans of the same type shall be allowed at the same time.

III. Loan Processing

1. Members can apply by accomplishing the corresponding Loan Application Form (for companies not in online MLMS yet) and through online loan application page for companies under MLMS.
2. For loans applied online, signed Promissory Note (PN) should still be submitted to the Cooperative before crediting the loan proceeds to member’s account.
3. Loan proceeds shall be released within seven (7) working days provided that the application for loan has been submitted within the prescribed cut-off time and with complete approval and supporting documents.
4. Except for Transport Loan, all loan proceeds shall be released/ credited through the member’s BPI/BFB ATM account.

IV. Loan Payments

1. All loans of regular members should be paid through payroll deduction and should follow the approved semi-monthly amortization schedule.
2. Loans of Associate members should be paid either through issuance of Postdated Checks or through Auto-Debit Arrangement (ADA).