1. Loan Product Features Using 7 Bank Examples

2. Comparison of Product Features

3. Client Eligibility Criteria
No. of years in operation
Licenses
Residency
Age
Bank 1
At least 1 yr
Resident of either of 3 specific towns for the last 3 years
25 – 60
Bank 2
Last 2 years
Resident of town where branch is located for the last 3 years
21 – 60
Bank 3
At least 1 year
Resident of the same barangay for at least 3 years
Bank 4
21 – 65
Bank 5
At least 2 years
LGU and DTI
Resident of the branch area for at least 3 years
18 – 60 and in good health
Bank 6
Preferably with LGU and DTI licenses
21 – 65 and in good health
Bank 7
LGU license
Resident of the same barangay for at least 1 year and must own house and lot
and in good health

4. Client Eligibility CriteriaID
Business Location
Co-Maker
Bank 1
Has some form of ID
Within the geographic coverage of MFU
Must be willing to get 2 Co-makers
Bank 2
Bank 3
Has some form of ID (SSS, GSIS, Driver’s License, Voter’s ID, Business Permit
Within priority areas of MFU
Bank 4
Bank 5
Bank 6
Bank 7

5. Client Eligibility Criteria
Others Loans
Cash Flow
Bank 1
Must have no outstanding loan and past due record
Prioritize those with daily/weekly sales
Bank 2
Business must generate daily/weekly sales
Bank 3
Those with outstanding loans may qualify if they don’t have past due record
Must pass CI and Cash Flow analysis
Bank 4
Bank 5
Those with outstanding loan with 5-6 operators must finish paying their loans before they can qualify to borrow from MFU
Bank 6
Preferably without loans from other sources, formal or informal
Bank 7
Those with outstanding loans may qualify if their loans are current.

6. Loan Size Bank 1 Php 3,000.00 Php 25,000.00 Bank 2 Php 60,000.00
Minimum
Maximum
Bank 1
Php 3,000.00
Php 25,000.00
Bank 2
Php 60,000.00
Bank 3
Php 2,000.00
Php 50,000.00
Bank 4
Php 100,000.00
Bank 5
Bank 6
Php 75,000.00
Bank 7

7. Interest and Other Charges
Service Charge
Others
Bank 1
3% fixed per month, add-on 3%
Processing Fee = P50; Notarial = P50; Insurance
Bank 2
3% per month flat
2.5% of loan amount
Notarial fee = P100; Insurance = % of loan, depending on loan term; GRT=5% of interest payable
Bank 3
2.5% per month flat, add-on
3%, deducted upfront
Insurance = 0.4 – 1.3% of loan, depending on loan term
Bank 4
3.5% per month flat, add-on
5%, deducted upfront
Insurance; Notarial fee = P100; P25 Miscellaneous (e.g cost of forms used)
Bank 5
2.5% per month flat
3% of loan proceeds for 3 mos.; 5% for 6-month loan, deducted upfront
Insurance = P13/P1000 loan;
Notarial fee = P100
Bank 6
2% per month, add-on
2% of loan amount for 2-3 months; 4% for 4-6 months
Notarial Fee
Bank 7
2.5% per month, add-on
0.83% per month, add-on
Insurance; pre-deducted

8. Penalties for late payment
Bank 1
P20/day missed
Bank 2
P20/ day missed, or P100/week overdue
Bank 3
6% of delayed installment/day, for daily amortizations;
6% of delayed installment/week, for weekly amortizations
Bank 4
P5/day, for daily amortizations
P5/week, for weekly amortizations
Bank 5
P500/missed payment + 5% of the late amortization, if 3 days past due
Bank 6
5% of loan amortization
Bank 7
100% of the amortization amount of every missed payment

9. Savings Contribution / Contractual Savings
Bank 1
5% of principal upon loan release
10% of each loan amortization; contractual
Clients not allowed to withdraw from the savings account until loan is fully paid
Bank 2
5% of loan amount upon release
Bank 3
Initial deposit of P100
At least 10% of each loan amortization; contractual
Bank 4
Bank 5
10% of loan amount, add-on
Bank 6
Bank 7
5% of loan amount, add-on

10. Loan Term Term Bank 1 2 – 6 months Bank 2 1 – 12 months Bank 3

11. Payment Frequency Term Bank 1 Daily / Weekly Bank 2 Bank 3 Bank 4

12. Guarantee / Security Term Bank 1 Bank 2 Bank 3
Spouse/relative as co-borrower
Two Co-Makers
Deed of Assignment of deposit account/Authority to debit
Chattel Mortgage (for loans above P15,000.00)
Insurance
Bank 2
Chattel Mortgage
Pledge of deposits
Insurance coverage
Bank 3
For loans below P25,000.00:
Spouse’s signature as co-applicant
Deed of Assignment of Deposit Account
Security Agreement (in the vernacular)
For loans over P25,000.00:
Deed of Assignment on deposit account

13. Guarantee / Security Term Bank 4 For loans below P20,000
Spouse’s signature as co-applicant
Two co-makers
Deed of assignment of deposit account
Security agreement (in the vernacular)
For loans over P20,000 but less than P50,000
Chattel mortgage
For loans greater than P50,000
REM

14. Guarantee / Security Term Bank 5 For P3,000 to P5,000 loans
Spouse’s signature as co-borrower
Must have one co-maker
Insurance coverage
For loans greater than P5,000 but less than P40,000
Security agreement or chattel mortgage on at least one of the following: serialized assets, equipment, vehicle, inventory
Deed of assignment of deposit account
For loans P40,000 up to P50,000: Hard collateral

15. Guarantee / Security Term Bank 6
Must have a spouse/relative as co-borrower
Two co-makers
Insurance coverage
Security Agreement
Deed of assignment of savings
Chattel mortgage, on a case-to-case basis, as determined by top management

16. Guarantee / Security Term Bank 7 For loans below P5,000
Spouse/relative as co-borrower
Two co-makers
Security agreement
Insurance
For loans over P5,000 but less than P50,000
Security Agreement
For loans over P50,000
Hard collateral
For loans P40,000 up to P50,000: Hard collateral

17. Client Incentives Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 Bank 6 Bank 7
Clients with perfect repayment can avail themselves of bigger repeat loans, based on adjusted repayment capacity rate (ARCR) and cash flow, with fast loan release of one day
Bank 2
Clients with perfect repayment can avail themselves of bigger repeat loans, based on ARCR and cash flow, with fast loan release of one day.
Bank 3
Speedy access to subsequent loans; Larger subsequent loans
Bank 4
Bank 5
Based on ARCR and cash flow, a client may get bigger repeat loans and/or longer maturity period, with fast loan release of within 1-3 days. Clients shall be informed that they cannot qualify for a repeat loan if more than 10% of their payments on their current loan are not on time.
Bank 6
Clients with perfect repayment can avail themselves of bigger repeat loans, based on ARCR and cash flow.
Bank 7

18. Client Orientation
Client Orientation
is required
by all seven banks

19. Loan Approval Process Bank 1 Bank 2 Bank 3
Loan application must pass the MF Credit Committee. The Credit Committee meets at least once a week.
Bank 2
Loan application must pass MF Credit Committee. The Credit Committee meets at least once a week.
Bank 3
Loan application must pass the MF Credit Committee. However, the Credit Committee composed of the branch manager and the MFU staff, is responsible merely for evaluating loan applications for recommendation to the Credit Management Director who has the sole authority to approve or deny loan applications up to P150,000. Credit Committee meets twice a week.

20. Loan Approval Process Bank 4 Bank 5 Bank 6 Bank 7
Loan application must pass the mini Credit Committee. The Credit Committee, composed of the bank’s VP and Head of Operations, a Board member, and the MFU staff, meets once a week to evaluate applications.
Bank 5
Loans are approved by the Credit Committee at the branch level.
Bank 6
Loan applications must pass mini Credit Committee. The Credit Committee meets weekly.
Bank 7
Loan application must pass the mini Credit Committee. The Credit Committee meets weekly