LBMPC Policy Manual

LUCBAN BUILDERS MULTI-PURPOSE COOPERATIVE

Reg. No. 9520-04002223

CREDIT COMMITTEE POLICIES

I. OBJECTIVE
This policy provides guidelines governing loan policies of Lucban Builders Multi-
Purpose Cooperative, pertinent provision of LBMPC by laws, policies and
procedures approved by the Board of Directors for the orderly implementation of
cooperative credit policies, programs and services.

II. LOAN ENTITLEMENT

a. Regular members are entitled to borrow up to 70% of their share capital in

the coop.

b. Associate members are entitled to borrow up to 50% of their share capital

in the coop. (Associate means continues to patronize the cooperative for
two (2) years).

III. ELIGIBILITY CRITERIA

a. The borrower who have undergone Pre-Membership Education Seminar
(PMES).

b. The borrower is a bona-fide regular or associate member of the LBMPC

Cooperative.

c. The borrower has fully paid the minimum share capital of ten thousand
pesos pesos (P 10,000.00) and membership fee of two hundred pesos (P
200.00)

d. The borrower or only members in good standing and have shown proofs
of patronage in the cooperative may avail of loan services.

IV. POLICIES AND GUIDELINES ON LOAN SERVICES

a. A member can avail of loan partially, until such time that the ten thousand
pesos (P10, 000.00) paid-up capital is completed.

b. The credit committee shall have the responsibility of interviewing,

assessing and approving the loan application of the members, except
when the applicant is a member of the said committee, under which
circumstance, it is the board of directors who will act on the application.\

c. The maximum term to pay the loan is 24 months or two years.

d. Failure of member to pay the loan for consecutive months(consecutive

months means 50% of the term of loan), a written undertaking will be
signed by the member.
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e. A corresponding filing fee of fifty pesos (P50.00) service fee of 2% of

principal and interest of 2% per month shall be deducted from loan, to
ensure the availability of funds at all times.

f. Another 2% shall be deducted from loan and will be added to the existing
member’s fixed deposit.

V. TYPES OF LOAN
Lucban Builders Multi-Purpose Cooperative shall offer but not limited the
following types of loan:

a. REGULAR LOAN
70% of Total Capital Share
Less all other Credit on Merchandise
1% per month
2% Service Fee
2% Share Capital
Filing Fee: P50.00
With Committee Signature

b. PURPOSE LOAN
Education Loan
Proof of Enrolment
Php 5,000.00
With Committee Signature
Christmas Loan
Php 7,000.00 to Php 15,000.00
Release: December 16, 2017
With Committee Signature
Appliance Loan
Select the item of your choice
Up to 70% of your Capital Share
With Committee Signature
Business Loan
Non-related business
Up to 70% of Capital Share
With Committee Signature

c. EMERGENCY LOAN
Php 3,000.00
No need for signature of the Committee

VI. TERMS AND MANNER OF PAYMENT

a. The terms of payment shall be monthly, quarterly, semi-annually; and
annually.

b. Payments may be made daily, weekly, 15th of the month, and monthly.
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VII. SUMMARY
The committee shall process, investigate, evaluate and act upon loan
applications and withdrawal of share capital, except when the applicant is a member
of the committee, in which case, the board will act upon his/her loan applications and
withdrawal of share capital. The committee shall exercise general supervision of
credit including collection of loans.

VIII. DUTIES AND RESPONSIBILITIES

1. The committee review and approve applications for loans and make decisions
upon such applications within the authority delegated to the committee.

2. The committee shall make all decisions, must be based on the loan policies
established by the Board of Directors and in compliance with applicable law.

3. The committee shall provide financial counselling to members in wise use of

credit.

4. The committee shall maintain records and documents of its proceedings, and
shall make regular reports to the board of directors summarizing the matters
reviewed and action taken at committee meeting.

5. The committee shall prepare and present a report at the annual general
assembly summarizing the loan activity for the year.

6. Appoint loan officers to assume all or part of the loan granting function.
Ensure that the loan officers carry out their duties according to all legal
requirements, board policies, and credit committee guidelines.

7. The committee may recommend amendments to this policy at any time and
submit amendments for approval to the board.

IX. PROVISIONS FOR ENFORCEMENT

A Credit Committee shall be composed of three (3) members appointed by the
Board of Directors in compliance with RA 9520, Article 43, Chapter IV of the
Philippines Cooperative Code of 2008. The credit committee is responsible for the
credit management of the cooperative.