Steps in Loan Application :
- Member- borrowers shall obtain a loan application form from the FICCO office where they are members.
- Loan applications must be properly accomplished. Members must secure all the requirements needed before the application is accepted.
Since FICCO have different types of loans according to the needs of its members, some of its loan requirements differ depending on the type of loan being requested, viz:
i. For Regular loans, Housing Related loans & Commercial loans
- Certificate of Employment/ Service record for employed members or Business Permit or DTI Certificate for business men
- Pay slip (last 3 months prior to application)
- Water and electric bill receipt (last 3 months prior to application)
- Income Tax Return (previous year- photocopy)
- Certificate of ownership of applications or OR/CR of motor vehicle or Original Title, Tax Declaration, Tax Clearance (Current year), Sketch plan and location plan for loans that require collateral.
- Chattel mortgage or Real Estate Mortgage form
- One-year bank statement or bank certificate for members who wished to use PDC’s as security.
- For Financing Loans
- Numbers 1, 2, 3, 4 & 6 of letter i.
- Quotation from reliable stores of the member’s choice
iii. For Educational Loans
- Numbers 1, 2, & 3 of letter i. Assuming member has no other loans (Current year)
- Certification from school where their dependents are currently enrolled indicating the amount of school fees or assessment.
iv. For Medical Loans
- Numbers 1, 2 & 3 of letter i. Assuming member has no other loans (Current year)
- Medical or Doctor’s certificate
- Drug prescription with corresponding value of the medicine
- Once accomplished, the loan application shall be submitted to the Loans Clerk/ C.I./ Loans Officer for initial evaluation as to the completeness of the application including updating of data in the computer.
- After scrutinizing the loan documents, the Loans Clerk/ C.I./ Loans Officer shall fill-out a Pre-Evaluation Form indicating all information such as: Monthly income, Monthly expenses and the disposable monthly income of the borrower. This Pre-Evaluation Form must be signed/ conformed by the borrower. The Loans Clerk/ C.I./ Loans Officer shall record the application on a logbook indicating the date and time of receipt.
- The submission of loan applications must have a cut-off date to be able to give time for background and collateral inspection.
- After the cut-off period, the C.I. must verify all the information stated by the borrower in the loan application, the member’s deposits as well as the signatures of the loaner, the spouse and co-makers. CI/Appraisers is prohibited from conducting appraisals for member borrowers who are their relatives up to 4 th civil degree by consanguinity or affinity.
- After establishing the accuracy of the data supplied by the member, the C.I. shall conduct actual inspection on the residence and make background checks on the member using the ‘5 C’s of credit’ scheme. An inspection fee of P 100.00 shall be 50 KMS P 300.00.
- The C. I. shall be responsible in making a written report after the credit investigation. This report will be the basis of the final evaluation by the Chief Loans/Manager and is crucial in the approval and/or disapproval of the loan application.
- When the C.I. has finished preparing all the Credit Investigation Reports (CIR), The Chattel Inspection/ Real Estate Inspection Reports (CI/REIR) and the Membership Information Reports (MIR), he will then submit these documents together with loan applications to the Chief Loans or the Manager who in turn, will make endorsements and recommendations to the Credit Committee.
- Members will then be required to attend a one & a half to two-hour briefing of the basic principles and policies of FICCO. Class A1 and A may attain loan briefing once a year.
- After the briefing, a personal interview shall be conducted by the Credit Committee who will make the Final approval or disapproval of the loan. Proxies will not be allowed during briefings and interviews. Releases of approved loans shall be subject to availability of funds. The credit committee may require the submission of income tax return from the borrowers for verification purposes. Loans approved or disapproved by the credit committee shall contain the following:
a.) Signatures of the approving members by at least two (2) credit committee;
b.) Date of approval;
c.) A notation “APPROVED” “DISAPPROVED” shall appear in the loan application;
d.) Approved loans shall be filed properly in secured vaults immediately after its release together with all necessary supporting documents.
- Approved or disapproved loan applications shall be returned to the Loans Clerk/ C.I./ Loans Officer for filing.
- The Loans Clerk/ C.I./ Loans Officer shall type/ prepare documents such as; CM Form & REM Form, if applicable, and shall affix his signature on the papers together with another FICCO employee to act as witnesses to the signing of the documents, after which, the Manager affix his signature.
- The FICCO Legal Counsel will notarize all the documents. After the notarization, the Documentary Clerk will bring the documents to the Bureau of Internal Revenue (BIR) and pay appropriate Documentation fees as well as the registration with the Registry of Deeds (ROD). The member shall be asked to pay for the payments to the BIR & ROD in cash aside from the processing fee of P 100.00 but shall not exceed P 500.00 & notarial of P 100.00 per loan document, which will be deducted from the member’s loan proceeds.
- After the documents have been properly registered with the ROD, the same shall be returned to the FICCO office pending final release of the loan.
- Final release of the loan will be after the registration of the ROD, in case of Real Estate Mortgage (REM) or Chattel Mortgage (CM) for appliances. For Chattel Mortgage on motor vehicles, the final release shall be after the annotation of the “encumbered to FICCO” by the Land Transportation Office (LTO).
- The Loans Clerk/ C.I./ Loans Officer shall prepare check vouchers for each of the loan applicants.
- The Accountant/ Bookkeeper or the Chief Loans/ Loan Analyst, shall verify all the entries in the check vouchers, loan applications and the loan disclosure and shall sign the checks for loans of Two Hundred Thousand Pesos (P 200,000.00) and below and shall be countersigned by the Manager. The Manager shall sign for loans above P 200,000.00 countersigned by the Treasurer or the member of the Board of Directors assigned for the cluster or in their absence, the General Manager/ CEO or the Manager of the nearest FICCO branch shall act as counter signatory.
- During the release, the Loans Clerk/ C.I./ Loans Officer or Manager shall let the member sign on a logbook indicating the name of the borrower, the type of loan, amount of release, check numbers and the date of release as well as the Check Vouchers and the Loan Disclosure. A copy of the Loan Disclosure, Promissory Note and the Amortization Schedule shall be given to the borrower.
- If the member-borrower cannot come personally because of obvious reasons, a written authority signed by the member-borrower indicating the reason why he/she cannot personally come and the person he/she is authorizing. The check proceeds of the loan maybe release but it shall only be encashed by the member-borrower. In some cases where the borrower has informed the office before the preparation of the checks and check vouchers, where a Special Power of attorney (SPA) has been submitted, the office may opt to include the name of the authorized person.
- After the release, the Loans Clerk/ C.I. shall file all the loan documents on a safe or steel cabinet in an orderly manner. Collateral documents such as OR/ CR of vehicles, Certificate of Ownership and Land Titles must be kept in a secured vault and shall be properly recorded in a logbook.
- Only authorized persons shall be allowed to access these files and the Loans Clerk/ C.I. must always monitor and properly record the whereabouts of these files.
- C.I./ Collectors are responsible to make constant follow-up and make collections to those loans that have been released.