DMPI Employees & Community Credit Cooperative

 PENSION LOAN

TERMS AND CONDITIONS

1.    Eligibility Requirements

An associate member of DMPI-ECCC ages from 60 to 67 years of age may qualify for a pension loan by submitting a properly accomplished application form at the DMPI-ECCC Office.

Incapacitated pensioner may apply through a designated representative with Special Power of Attorney, but the signing of the application form must be signed by the pensioner himself/herself.

2.     Amount of Loan

The amount of loan shall not be more than 80% of sum total as approved by the SSS per year and as reflected in its any document proofs to be submitted as one of the requirements but not exceeding to Php 100,000.00.

3. Terms of the Payment

The loan principal, interest and other charges due shall be payable in monthly amortization within the term opted by the Pensioner-Borrower which may either be one (1) or two (2) years.

The monthly amortization shall be deducted from the Pensioner-Borrower’s monthly pension from SSS. It is understood that the Pensioner-Borrower cannot authorize the stoppage of such pension deduction until full payment of the loan and other charges that may have accrued thereon.

In the event that deduction as above authorized is not effected for whatever reason, the Pensioner-Borrower hereby undertakes to pay directly to the DMPI-ECC any and all amortization due.

In the event that the ATM Card has been blocked for whatever reason, the DMPI-ECCC is authorized to offset his/her loan amortization due from his/her savings or fixed deposit account.

The Pensioner-borrower is subject for legal action for non-payment upon maturity.

4.     Due Date of First Monthly Installment

The first monthly amortization shall be due on the first day of following month.

5. 5.    Interest Rate

The loan shall apply an interest rate of one and half percent (1.5%) per month at diminishing balance.

6.    Service Fee

A service fee of 1.5% of the loan amount granted shall be charged and deducted from the proceeds of the loan.

7.    Surcharges

A surcharge of 1% per month in all uncollected unpaid principal amortization.

8. Loan Protection Plan

A loan protection plan of 0.35 cent per thousand shall be charged and deducted from the proceeds of the loan. (This may change depending on the premium of loan protection plan)

This loan automatically matures upon the death of the Pensioner-Borrower notwithstanding that a longer term was chosen by the Pensioner-Borrower.

9.  Renewal of Loan

This loan is subject for renewal with at least 50% of the loan amount paid.

10.   Loan Pre-termination

The Pensioner-Borrower may have the option to pre-terminate the loan during its term subject to the full payment of outstanding balance of the principal amount, including all interest and other charges payable.

11.  Notices

All notices required under this Agreement or for its enforcement shall be sent to the Office Address or at Postal/Mailing Address indicated in the Personal Data portion of this loan application or as such other address as may be indicated hereafter by the Pensioner-Borrower to the DMPI-ECCC. The notices sent to any of such addresses shall be valid and sufficient notice to the Pensioner-Borrower for all legal intents and purposes.