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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.

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

P20,000

16%

As low as 0.74%

P200

None

See Birthday Loan Table 

Educational

5 x equity

P50,000

18%

0.83%

P200

10%

12 months

Hospitalization

5 x equity

P50,000

18%

0.83%

P200

10%

12 months

Appliance

5 x equity

P50,000

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

P50,000

24%

1.12%

P200

10%

12 months

Travel

5 x equity

P50,000

24%

1.12%

P200

10%

12 months

Multipurpose

5 x equity

P100,000

36%

1.74%

0.5% of Loan or P200 whichever is higher

10%

24 months

Housing Equity

5 x equity

P100,000

18%

0.83%

0.5% of Loan or P200 whichever is higher

10%

24 months

Car Equity

5 x equity

P100,000

18%

0.83%

0.5% of Loan or P200 whichever is higher

10%

24 months

Share Capital Loan Equity N/A 16% 0.79% 0.5% of Loan or P200 whichever is higher None 24 monthss

 

TENURE REQUIREMENT (except for Birthday Loan)

Loan Amount HPPECC 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

 

BIRTHDAY LOAN TABLE

HPPECC Tenure Loan Entitlement Payment Term Co-Makers Needed
6 Months P5,000.00 3 Months 0
9 Months P10,000.00 6 Months 0
12 Months P15,000.00 12 Months 0
24 Months P20,000.00 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 DXC Technology, Hewlett Packard Enterprise, and HP Inc. (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!

 


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Contact Us

Address: 

11F Intellectual Property Center
McKinley Hill, Taguig City

 Phone:

+63-2-7975-4087

 Email:

 admin@hpp.coop

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