SALARY‐BASED GENERAL‐PURPOSE CONSUMPTION LOAN

This loan accommodation shall be officially called the DCDB Salary Loan. This type of loan is for medical, maternity, home, personal consumption, education, and emergency expenses for private and government (regular) employees and their immediate family members.

COVERAGE

◙ Private business entities, government units/agencies that will forge a Memorandum of Agreement with the Bank for the purpose of salary loan availment;
◙  Limited to full‐time and permanent employees of private and government institutions who are not due for retirement for at least two (2) years from the date of application.

FOR GOVERNMENT UNITS/AGENCIES

◙  For private and Government employees, amortization payments which cover principal and
interest should not exceed sixty (60%) percent of an employee’s net take‐home pay;
◙  For Barangay‐elected and appointed officials amortization should not exceed sixty (60%) percent of their net take‐home pay.

TERM

◙  The term of the loan shall be for a minimum of six (6) months up to a maximum of two (2) years.

INTEREST RATE/CHARGES

◙  Interest rate is set at twenty (20%) percent per annum (diminishing) and subject to adjustment/repricing/review every quarter;
◙  A one‐time service charge (SC) of 3.5% based on the approved amount shall be collected upon loan release;
◙  Notarial fee, documentary stamps on PN, and other legal fees shall be charged accordingly if necessary.
◙  The Mortgage Redemption Insurance Premium shall be computed based on the loan amount;
◙  A collection fee of 1% of the loan amount shall be collected upon loan release and given to the unit/agency concerned;

MODE OF PAYMENT

◙  Payment of the loan shall be weekly, semi‐monthly or monthly as applicable by the concerned unit/agency via salary deduction, and granting the concerned treasurer/cashier/payroll officer the authority to deduct the required amortization as agreed and remit the same to the Bank upon receipt of the borrower’s next scheduled salary. Loans shall be through salary deduction.

CHECKLIST OF REQUIREMENTS

◙  Loan Application Form (LAF), Client Information Form (CIF), Co‐maker Statement (NOTE: Co‐makers are allowed to co‐make with only one (1) principal borrower and cannot act as a surety of borrower’s spouse);
◙  Certification of permanent/regular employment from the unit/agency concerned duly signed by its authorized representative;
◙  Certification of net take‐home pay from the unit/agency showing the itemized income and deductions and that the salary is free from all liens and encumbrances;
◙  Latest Income Tax Return for regular employees. For elected and appointed officials depending on the availability, provided that a certification from the Direct Head that he/she is an elected/appointed official is accomplished;
◙  Authorization to Deduct Salary from the borrowing employee assigning the borrower’s salary in favor of the Bank and granting the concerned Treasurer/Cashier/Payroll Officer authority to deduct the required periodic amortization/s and remit the same to the Bank as necessary. The authorization must bear the conformity of the Treasurer/Cashier/Payroll Officer and the Manager and/or Officer in Charge of the borrowing employee;
◙  Comprehensive Surety Agreement (from the borrower’s company/employer or from a third party);
◙  Promissory Note and Disclosure Statement signed by the borrower and the co‐maker;

DOCUMENTARY REQUIREMENTS (Co‐maker)

◙  Co‐maker’s Statement
◙  Latest Income Tax Return

DOCUMENTARY REQUIREMENTS (Employees of Local Government Units)

◙  In addition to the required documentation stated above:
A certification from the Municipal Mayor or Barangay Captain (as the case may be) that the borrower’s salary is free from liens and may be assigned in favor of the Bank.

RE-AVAILMENT

Loan re‐availments by a borrower or co‐maker may be allowed only after six (6) months in payments of the borrower’s present loan.