1. ELIGIBILITY CRITERIA

The loan shall be granted to Borrower who passed the eligibility criteria as herein set by the Bank;

1.1 Net Take Home Pay (NTHP) after amortization deduction of the loan applied for must not fall below the minimum NTHP mandated per the latest General Appropriations Act and covered by relevant memorandum of the Bank:

1.2 Must have rendered at least six (6) months in service;

1.3 Must be at least 21 years old of age but not more than 60 years old upon maturity of PN;

1.4 Must be a regular/permanent employee or coop member as evidenced by the Recommendation or Endorsement Letter from employer to avail salary loan from EWRB or Authenticated Copy of Service Record & Appointment.

1.5 Must belong to an institution accredited by the Bank.

1.6 Must be able to submit complete documentary requirements and all other documents that may be required by the loan approving authority;

1.7 Must be able to provide at least one (1) eligible co- borrower of the loan, if applicable.

1.8 Must maintain an ATM Savings Account with EWRB Store

2. LOAN AMOUNT AND TERM 

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2.1 The Borrower may be granted a minimum of Ten Thousand Pesos (10,000) and the maximum amount will depend on the Accreditation Approval Memo (AAM).

2.2 Loanable amount is based on NTHP reflected in the Borrower’s latest payslip and is computed using Loanable Amount Computation Sheet and Amortization Table (LACSAT);

2.3 The Borrower maybe granted a term of six (6) months up to maximum term per Accreditation Approval Memo (AAM) but should not exceed five (5) years or on his/her 60th birthday, whichever comes first.

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3. FEES AND CHARGES 

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3.1 Interest rate of 0% per annum for one (1) month up to five (5) years loan term, based on a diminishing balance (from the time the loan is granted until its full payment);

3.2

3.3 Application Fee of 6% deducted upfront based on the loan amount applied. This covers the following:

a. Notarial Fee of Php200.00 regardless of loan amount.

b. Loan Redemption Insurance (LRI) for the 1st term of the loan is computed at Php9.70 per Php1,000.00 of loan amount applied.

c. Documentary Stamp Tax (DST)

d. Service Fee (SF), net of other charges.

3.4 LRI for 2nd, 3rd, 4th, and 5th term, if applicable, shall be for the account of the Borrower and must be collected through over-the-counter paymentor auto debit from Borrower’s EWRB Savings Account upon consent.

3.5 DST shall be applied for total aggregated loan amount per day of more than Two Hundred Fifty Pesos (250,000) and is computed at P1.50 per 200, or fraction thereof, of the loan;

3.6 Penalty of 36% per annum based on missed amortization.

3.7 The interest, fees and penalty rates may change over time.

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4. LOAN REPAYMENT AND RENEWAL 

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4.1 Borrower shall pay equal monthly amortization computed based on diminishing principal balance and interest charges;

4.2 Bank shall provide Borrower’s copy of his/her amortization schedule upon approval of loan as part of the post-borrowing orientation;

4.3 Borrower may opt to pre-terminate or pre-pay his/her loan provided any outstanding balance and other charges incurred shall be fully paid;

4.4 Loan renewal of higher amount maybe allowed provided warranted by NTHP and approved maximum loanable amount per borrower.

4.5 Auto-renewal and additional loan are allowed, as long as the NTHP warrants.

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5. BORROWER AND CO-BORROWER'S RESPONSIBILITIES

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5.1 In the event the Borrower’s monthly salary, the primary source for payment of loan amortization, is cut-off due to whatever reason it may be, the Borrower’s outstanding loan shall become due and demandable without need of demand or further notice

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5.2 The Borrower and Co-Borrower shall be jointly and severally liable to the Bank for the full payment and complete performance of all obligations of the Borrower provided in the loan agreement;

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5.3 The liability of the Borrower and Co-Borrower shall extend to all extension of time payment of the loan plus all interest thereon;

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5.4 In the event (a) the Borrower and/or Co-Borrower fails to pay the Bank any amount when due which the Borrower is obligated to pay under the loan agreement and other documents contemplated relative to the loan; or (b) any representation or warrantyof the Borrower under any certifications, applications for loan or other documents given to the Bank in connection with the Loan is shown to have been incorrect and misleading in any material respect, or (c) the Borrower fails to perform or violates any of the covenants and other provisions of the loan agreement, then the Bank may declare the loan together with the accrued interest thereon any other sums payable hereunder to be immediately due and payable without the need for demand, protest or notice of any kind;

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5.5 Whenever the Borrower and/or Co-Borrower have several obligations to the Bank, including, but not limited to the obligation hereunder, the Bank has the right to apply to the payment of any Borrower’s obligations which the Bank may at its option, select whether or not any one of the obligations is more or less than the others, and all sums the Bank may receive from the Borrower or from other parties for and in behalf of the Borrower, as well as, all monies on deposit or account with the Bank belonging to or to the credit of the Borrower.

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6. RIGHTS OF THE BORROWER

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6.1 The Borrower should be given copy of the following loan documents with his/her signature upon loan disbursement:

a. Promissory Note

b. Disclosure Statement

c. Amortization Schedule

6.2 The Borrower may file a complaint in case of inappropriate behaviour, misleading actions and/or unfavourable events at his/her expense caused by the Bank. A complaint may be made in person, by phone, by email or in writing. The Bank shall then provide immediate resolution/s in accordance to the Bank’s policies and procedures in handling customer complaint.

6.3 The Borrower shall authorize the Bank to encumber, assign or sell to any person or entity, any right which the Borrower may have under this note and/or assignment, mortgage lien, pledge or other encumbrances constituted in favour of the Bank pursuant to the provisions of the loan agreement and this note, if any.

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7. OTHER PROVISIONS
 

7.1 In case of judicial enforcement of the obligation or any part of it by Bank,Borrower and/or Co- Borrower shall waive all their rights under the provisions of Rule 39 Section 12 of the Rules of Court, and the Borrower and/or Co-borrower shall pay jointly and severally ten percent (10%) of the amount due on the note as attorney’s fees, which in no case shall be less than FIVE HUNDRED PESOS (P500.00) exclusive of all costs and fees allowed by law.

7.2 Should any issue/case arise as a result of this obligation, venue shall be at the Proper Courts in the city or municipality of the Borrower’s residence.