Credit Policy

It set forth League’s approach and standard operating procedures to guide management, Credit Committee and Board of Directors in achieving the strategic objectives of the organization, ensure safety of member deposits and assist in financing the credit needs of the membership.

    • Eligibility for a loan from the League does not confer automatic right on the member- cooperative to a loan.
    • The League will endeavour to assist each member-cooperative by making loans promptly for worthwhile purposes.
    • Each loan so made will comply fully with the requirements of the League’s rules and other policy requirements contained herein.
    • The League will not discriminate against cooperative applicants for a loan on the grounds of race/nationality, political opinion, and religion.
    • a. Documentation. Loan applications should only be accepted on the approved form that should be completed in full by the cooperative member-borrower before submission for consideration.
    • b. Interview. All member-cooperatives should be interviewed prior to the granting of a loan. All cooperative applicants should be encouraged to save regularly and a cooperative-member’s savings record should be taken into account when the loan application is considered.
    • c. Credit Investigation. It shall be obtained on all loan applications. No loans shall be made to new cooperative-members unless their membership matures for a minimum of 90 days (3 months) after the Board of Directors has approved it.
    • d. Income. The income/net surplus stated on the Financial Statement and current financial condition presented in the Balance Sheet submitted should be verified.
    • e. General Policy. It should be the general policy of this League that the minimum and maximum repayment terms for loans shall be 6 months and 12 months, respectively.
    • f. Deferred/Rejected Loans. Loans shall not be made to a member-coop with a delinquency record unless the coop-borrower has been able to demonstrate an improved record and is able to provide a satisfactory guarantee or acceptable security.
  2. UNSECURED LOANS. The maximum loan, which may be granted without security, is One Hundred Fifty Thousand Pesos (P 150,000.00), provided the cooperative-borrower has a good credit standing with the League.
  3. SECURED LOANS. The general maximum limit of a secured loan is Five Hundred Thousand Pesos (P 500,000.00), except in special cases approved by the Board of PFCCO-Central Luzon.
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