Loans And Financing
Granting of Loans and Financing
Loans and Financing may be granted to all members of the Cooperative in good standing either for providential or productive purposes. In determining the amount of loans to be granted, the applicant’s character, capacity to pay, and collateral or securities offered to insure the payment of the loans shall be considered.
Also, the standing policy of AUF and AUFMC on the fifty (50) percent retention on employee’s salary shall be strictly observed.
Loans Purposes
Providential loans - to assist the Maker and his/her family meet their financial obligations . The loan may be used for the following purposes, such as but not limited to: payment of hospital or medical expenses; tuition fees and other school expenses of children and dependents; taxes and licenses; loans from individual, house financing and banks; house construction or repair; funeral expenses; and other non-productive purposes.
Productive loans - to enable the Maker and his/her family members to augment family income. The loan may be used as seed or additional capital for small scale or micro-type business ventures.
Qualifications of a Maker
Must be a member in good standing;
Must have subscribed to a minimum of fifty (50) shares with a total value of Five Thousand Pesos (P5,000.00) and must have paid up at least fifteen (15) shares with a total value of One Thousand Five Hundred Pesos (P1,500.00); and
Must have been a regular contributing member and has established membership residency for at least ninety (90) days.
Restrictions in the Granting of Loans
In the granting of loans, the purpose/s for which the loan is to be used must be specifically stated in the loan application. Any false representation or statement made in the loan application shall be a ground for its disapproval. If the loan has been used for purposes other than those for which it was approved and granted, the loan shall at once become due and demandable.
The Board of Directors and the Members of the Committees are restricted to vote on a loan filed by a member of his/her family, whether by affinity or consanguinity up to the third degree, or on a loan filed by a person who owe a debt to him or to any member of his/her family; neither can he/she become a co-maker, surety nor endorser on any loan contracted with the Cooperative.
Appeal on Loan Applications
An appeal on the decision of the Credit Committee may be presented in a joint meeting of the Board of Directors and the Audit and Supervisory Committee whose decision on the matter shall be final and irrevocable.
Rebates on Loans
Rebates on all loans except on Emergency and Financing II (Groceries) will only be applied upon full payment of loans.
Effectivity of Interest
Application of interest on approved loans shall take effect on the date the check was prepared.
