Loan Products

LOAN PRODUCTS 

The Cooperative’s loan products are designed to satisfy members’ financial requirements while also to safeguard their investments. 

Type of Loan	Purpose
Petty Cash	Immediate needs, e.g. transportation, utility bills, food etc.
Emergency	Emergency needs for medical, calamity, accidents, etc.
Birthday Loan	To celebrate birthdays of members.
Educational	Educational expenses of members and their family up to the 2nd degree of consanguinity and affinity.
Hospitalization	Hospital confinement of members and their family.
Appliance	Purchase of appliances.
Abenson Loan	Purchase of appliances and motorcycles through the coop's partnership with Abenson.
EPP Loan	Purchase of HP products.
Wedding	Wedding expenses of members.
Travel	Travel cost of members and their family.
Multipurpose	No specific purpose.
Housing Equity	Equity component of member’s house/condominium mortgage.
Car Equity	Equity component of member’s car loan.
Associate Member Loan	No specific purpose.
Share Capital Loan	No specific purpose.

Note: There will be no Co-Makers needed for any loans amounting to less than or equal to the Share Capital of the Cooperative member. 

 

LOAN TERMS  

The Cooperative’s loan products differ from those offered in the market. They are not available from traditional banking sources, they do not entail expensive credit investigation, and they are processed quickly. Moreover, borrowers earn patronage refunds from their loan interest payments which effectively lowers the Coop’s interest rates further. 

Loan Type	Loan Entitlement	Loan Ceiling	Diminishing Interest Rate	Effective Monthly Rate	Service Fee	Retention Fund	Maximum Term
Petty Cash	P5,000	P5,000	N/A	2%	P100	None	1 month
Emergency	P10,000	P10,000	16%	0.79%	P200	None	6 months
Birthday Loan	See Birthday Loan Table	P25,000	16%	As low as 0.74%	P200	None	See Birthday Loan Table
Educational	5 x equity	P100,000	18%	0.83%	P200	10%	12 months
Hospitalization	5 x equity	P100,000	18%	0.83%	P200	10%	12 months
Appliance	5 x equity	P80,000	24%	1.12%	P200	10%	12 months
Abenson Loan	5 x equity	P50,000	18%	0.83%	P200	10%	12 months
EPP Loan	5 x equity	P50,000	18%	0.83%	P200	10%	12 months
Wedding	5 x equity	P100,000	24%	1.12%	P200	10%	24 months
Travel	5 x equity	P80,000	24%	1.12%	P200	10%	12 months
Multipurpose	5 x equity	P200,000	36%	1.74%	0.5% of Loan or P200 whichever is higher	10%	36 months
Housing Equity	5 x equity	P200,000	18%	0.83%	0.5% of Loan or P200 whichever is higher	10%	36 months
Car Equity	5 x equity	P200,000	18%	0.83%	0.5% of Loan or P200 whichever is higher	10%	36 months
Associate Member Loan	100% Equity	75% Equity	16%	0.79%	0.5% of Loan or P200 whichever is higher	None	60 months
Share Capital Loan	100% Equity	100% Equity	16%	0.79%	0.5% of Loan or P200 whichever is higher	None	60 months

 

TENURE REQUIREMENT (except for Birthday Loan)

Loan Amount	HPPCOOP Tenure Requirement
Up to P25,000	3 months
P25,001 to P50,000	6 months
P50,001 to P75,000	9 months
P75,001 to P100,000	12 months
P100,001 to P150,000	24 months
P150,001 to P200,000	36 months

 

BIRTHDAY LOAN TABLE

HPPCOOP Tenure	Loan Entitlement	Payment Term	Co-Makers Needed
6 Months	P10,000.00	6 Months	0
9 Months	P15,000.00	6 Months	0
12 Months	P20,000.00	12 Months	0
24 Months	P25,000.00	12 Months	0

 

INTEREST RATES 

The Cooperative’s loan products must be patterned after market rates. This is to ensure the economic viability of the Cooperative. However, these loan products cannot be offered in the formal financial markets because they would be too expensive for these financial institutions to handle. But since the law mandates that annual net surplus of the Cooperative be returned to members in the form of dividends and patronage refunds, this ensures that members get the benefit both by being the owners as well as the borrowers of the Cooperative. 

Terms, Rates and Conditions are subject to change without notice in the sole discretion of the Cooperative Board of Directors. All amendments to these Terms, Rates and Conditions will be shared to the members through any of the digital communications channel available – email, website, social or media.

 

RETENTION FUND 

As part of the Cooperative’s policy on capital build-up, most of the loans borrowed from the Cooperative require a 5% Retention Fund. This means that the borrower will have to add the equivalent of 5% of the loan into his Share Capital Contribution, payable in equal payments throughout the duration of the loan.

 

SECURITY 

As the Cooperative is a separate entity from members' employers (the "Company"), no Company confidential information including, but not limited to, compensation, capacity to pay, etc., will be shared between the Company and the Cooperative. The Cooperative is taking all the risk in giving out loans to its members. As such, to safeguard members’ equity, the Cooperative will require co-makers for its loan products. Co-makers are jointly liable with the Maker (Borrower) of the loan. In case of non-payment of the borrower, the Cooperative may go against the co-maker to collect payment.

Loan Amount	Co-makers Needed
Up to P5,000	0
P5,001 to P25,000	1
P25,001 up	2

 

DOCUMENTION

In addition to the submission of a Loan Application Form, some of the Cooperative’s loan products require additional documentation. This is to ensure responsible use of the Cooperative’s credit facility. 

Loan Type	Documentation Required
Emergency	Proof of calamity, death, other fortuitous events
Educational	School’s billing statement
Hospitalization	Bills or official receipt of hospital
Appliance	Quotation or OR of appliance
Abenson Loan	Quotation from Abenson
EPP Loan	Quotation or OR of HP Product
Wedding	Quotation or OR of wedding expenses
Travel	Quotation or OR of travel package
Housing Equity	Contract to sell
Car Equity	Quotation or OR of car

 

PENALTIES 

In addition to interest rate charged on past due balances, the following penalties will be imposed on the borrower for delayed payments: 

Past Due	Penalty
Up to 30 days	The Coop will send a reminder letter to member (cc: co-makers) Loan ceiling will be reduced to 2 x share capital
31-60 days	The Coop will send a reminder letter to member (cc: co-makers) Penalty fee of 3% of monthly amortization Loan ceiling will be reduced to amount of share capital contribution Co-makers will be informed that past due balances may be charged to them
61-90 days	Penalty fee of 6% of monthly amortization First demand letter from Coop’s legal counsel (cc: co-makers) Loan availment will be suspended for 6 months after all loans have been paid Loan amortizations may be transferred to co-makers
91-120 days	Penalty fee of 9% of monthly amortization Second demand letter from Coop’s legal counsel (cc: co-makers) Loan availment will be suspended for 1 year after all loans have been paid Loan amortizations will be transferred to co-makers

When past due balances remain unpaid for more than 90 days, the co-makers shall bear the outstanding liability including the interest and penalty charges therein. 

When past due balances remain unpaid for more than 120 days, the Cooperative may exercise the option to terminate the borrower’s membership and close the member’s Share Capital Contribution against his/her outstanding balance.

 

PRE-TERMINATION 

When a loan is pre-terminated, the borrower has to pay a pre-termination fee of 3% based on the outstanding loan balance.

 

PROCEDURE 

The following procedures will be followed when availing of the Cooperative’s loan products: 

1. Member to secure a Loan Application Form from the Coop Staff.
2. Member to fill-up the form and submit the accomplished form to the Cooperative.
3. The Coop Staff will check for completeness as well as compliance to Share Capital Contribution.
4. Petty Cash and Emergency Loan applications can be approved by the Coop’s General Manager.
5. Loans involving more than P5,000 will have to be approved by at least one member of the Credit Committee, one member of the Board of Directors and must be noted by the member’s manager.
6. The Coop releases the loan by issuing a check payable to the borrower or depositing to the borrower’s BPI account. 

This procedure can be completed in 1-2 weeks for most of the loans. 

 

APPLY NOW!