B2 Mf Loan Documentation (1)

Loan Documentation Procedure

Loan Documents Checklist
Loan Application
CI/BI Report
Co-Signer’s Profile
Loan Recommendation Sheet
Promissory Note
Discount Statement
Loan Amortization Schedule
Deed of Assignment of Deposit
Security Agreement/Kasabutan
Credit Memo for Savings Account or Cashier’s Check
Signature Cards for Opening of Savings Account

Loan Application
Basis for determining whether the applicant meets the basic eligibility criteria of the ABC Loan
Given to the client after the client orientation session and submitted to the AO after completion
Should be properly filled out
Signed by borrower and the co-borrower
Can be handwritten. But if handwriting is not legible, should be typewritten
With client’s picture ID and any other requirements
AO should assist Clients who need help in completing the application if required.

Credit Investigation Report
Basis for determining the client’s character and capacity to pay
Contains information about the client’s personal circumstances, assets, credit history, savings, details of his/her business, cash flow analysis, results of character checking, and the AO’s own assessment and recommendations on the loan application
Prepared and signed by the AO
Reviewed by the MFU Supervisor
AO is responsible for verifying all information supplied in the CI report. Any false information deliberately supplied by the AO will be a cause for disciplinary action.
Can be handwritten

Co-Maker’s Profile
Prepared by the AO by interviewing the co-signer
Signed by the co-signer after the interview
Used to determine the eligibility of the person as co-signer
Contains information about the co-signer’s personal circumstances, details of his/her occupation and income, relationship to the client, and his/her willingness to act as co-signer.
Before the interview, AO should clearly explain to the person the responsibilities of a co-signer and the strict policy of the bank with regard to loan collection
Can be handwritten

Loan Recommendation Sheet
Prepared by the AO
Submitted to the Credit Committee along with the loan application and CI report
Contains the highlights of the CI report
Indicates the decision taken by the Credit Committee with regards to the loan application
Can be handwritten

Promissory Note
Serves as the main loan document or evidence that the client has taken out a loan from the bank and agrees to the terms and conditions of the loan
Indicates the date of PN, name of borrower, amount of loan, maturity date, interest rate and penalty charges, and other conditions of the loan
Loan amortization schedule is attached to the PN
Signed by the borrower(s), co-signer(s) at the bank immediately before loan release
Also signed by the AO and MFU Supervisor as witnesses
Prepare required number of copies (2 )
Should be checked by the MFU Supervisor to make sure that the completed PN is in order
Should be typewritten

Disclosure Statement
Shows amount of financial and non-financial charges to be deducted from the loan, and the net proceeds of the loan
Also proves that the net proceeds have been received by the borrower
Prepared necessary copies – the original copy of which is given to the borrower and copy/ies kept for file
Checked by the bank accountant
Signed by the borrower immediately after the proceeds of the loan are disbursed (through deposit or CC)
Should be typewritten

Security Agreement
Provides additional guarantee (aside from co-signer’s guarantee) for the loan from the borrower
Indicates the type of assets owned and offered by the borrower to secure his/her loan, and the borrower’s consent to turn these assets over and allow them to be sold by the bank if s/he fails to comply with his/her obligation
Prepared by the AO
Signed by the borrower and spouse before loan disbursement
Also signed by the AO and MFU supervisor as witnesses
Can be handwritten

B2 Mf Loan Documentation (1)

by MABSIV on Jun 15, 2010

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B2 Mf Loan Documentation (1) — Presentation Transcript