CARIDAD GRARIAN REFORM COOPERATIVE
Brgy. Caridad, Jamindan, Capiz
Policy No. 1
Series of 2024
Policy, Systems and Procedures (PSPs) in the Implementation of Microfinance Loan
Policy Statement/Purpose:
To provide timely credit support extended to augment the small business operation of members
thru coop initiated microfinance service with minimal interest.
Person/s responsible, Duties and Functions:
Manager
1.) Recommend to the Board the approval of loan and facilitate the release thereof;
2.) Over-see the day-to-day operation (microfinance loan);
3.) Submit monthly report to the Board re: status of program/project operation;
4.) Submit recommendation to the Board for possible policy changes for the improvement of the
over-all flow of operation;
5.) Accept loan application, perform loan orientation and monitor status of loan, releases and loan
portfolio;
6.) Schedule release of Loan (every Wednesday)
7.) Perform other function as may be deem necessary by the BOD.
Credit Committee
1.) Evaluate loan application and conduct CI/BI and complete the task within 3 days (for those
resident of Brgy. Caridad; 5 days for outside residence).
2.) Submit recommendation to the Manager for loan approval or disapproval;
3.) Perform other function as may be deem necessary by the BOD.
Bookkeeper
1.) Prepare voucher for signature of the Manager and BOD Chairperson;
2.) Log all financial transactions of the cooperative and maintain ledger of every business
operation or account;
3.) Perform other function as may be deem necessary by the BOD.
Treasurer
1.) Safeguard the cash and cash equivalent of the cooperative
2.) Prepare and maintain cash receipt books
3.) Prepare the cash for release of loan
4.) Log the transaction (loan repayment, CBU and savings contribution) in the passbook of
individual members;
5.) Perform other function as may be deem necessary by the BOD.
Loan Product Profile
Name of Loan Product : Microfinance Loan
Min. Loanable Amount : PhP 3,000.00
Max. Loanable Amount : PhP 5, 000.00
Term of Loan : 2 mos
Repayment Period : Weekly
Interest Rate : 2.5% per month
Eligible Borrowers : Sari-sari store, vendors & other small business owner
Continues Capital Build-up : PhP 75.00 (for loans 3,000 and below)
PhP100.00 (for loans 5,000.00 and below)
Savings Contribution : PhP 75.00 (for loans 3,000 and below)
PhP100.00 (for loans 5,000.00 and below)
Service Charge : PhP 100.00 regardless of loan amount.
Note: Service fee, interest, CBU and Savings to be deducted upon release. Net proceeds will be
released to the borrower.
Separate weekly amortization schedule based on principal amount will be provided to guide
borrower and collector accordingly.
Requirements to avail microfinance loan are the following:
a. One valid ID, photocopy
b. Copy of business permit
c. Photocopy of the ID of a co-maker
Note: When borrower fail to do his/her duty especially repayment of loan, the co-maker’s account (cbu
and savings) will be freeze by the cooperative until such account will be settled.
Initial Capital
The coop will allocate PhP 15,000.00 as initial working capital for the service. Charge against its internal
fund.
Processes to avail microfinance loan:
a. Member-borrower to fill-up loan application form
b. Manager to inform members of the Credit Com. to perform CI/BI (within 2 days)
c. Another day is allotted for loan orientation and loan release to be facilitated by the Manager.
Amortization schedule will be prepared by the Manager to be signed or acknowledge by the member
borrower
d. The Manager thru the bookkeeper to prepare list of member-borrowers, loan amount and schedule of
payment/amortization and furnish the copy to treasurer and Credit Com for their guide in loan collection.
e. Treasurer/Credit Committee whichever is applicable shall be authorized to reflect his/her initial in the
passbook. This is to ensure that transaction is updated by the authorized coop officials accordingly.
f. Disbursement voucher will be prepared by the bookkeeper for every approved loan, to be signed by the
Manager or chairperson and duly received by the borrower.
Note: Passbook will be provided to every member borrower. Cost of such will be charge to member-
borrower.
Amount of Loan PhP3,000.00 PhP 5,000.00
Less Deductions Loan
Service Fee 100.00 100.00
CBU retention 75.00 100.00
Savings 75.00 100.00
Interest (2 mos) 150.00 250.00
Total Deductions 400.00 550.00
Net Proceeds 2,600.00 4,450.00
Weekly Amortization 375.00 625.00
Deductions:
Sample Amortization and Purpose of deductions:
a. Service Fee - will serve as service income of the cooperative. Will be used to finance administrative
and other operating expenses.
b. CBU retention – Additional capital of the member-borrower. Additional internal fund of the
cooperation in support to the operation (succeeding releases to other eligible borrowers).
c. Savings – To increase awareness and enhance financial literacy among member-borrowers.
Withdrawable anytime to aid repayment of weekly amortization, if member-borrower is short of cash.
Savings could earn interest, 5% per year provided a minimum balance of PhP500.00 is maintained.
Sample Loan Amortization Schedule
SCHEDULE PHP 3,000.00 PHP 5,000.00 REMARKS
Week 1 375.00 625.00
Week 2 375.00 625.00
Week 3 375.00 625.00
Week 4 375.00 625.00
Week 5 375.00 625.00
Week 6 375.00 625.00
Week 7 375.00 625.00
Week 8 375.00 625.00
TOTAL PHP 3,000.00 PHP 5,000.00
Loan Collection Strategies:
To ensure higher repayment rate, the cooperative will employ the following loan collection
strategies:
a. Coop to act on loan application and make sure decision to approve or disapproved within 3
days upon receipt of application.
b. Loan orientation to member-borrower before loan release. Present the project policy.
c. Notify member-borrower at least 2 days before loan is due for collection.
d. Collector or Credit Committee must maintain the confidentiality of loan and the
findings/recommendations out of CI/BI.
e. Collector/Credit Com. to maintain the pleasing personality to establish good relationship with
member-borrower.
f. Allow early renewal of loan provided, amortization balance will be paid first by the borrower.
g. Co-maker will be reminded if principal borrower fail to pay his/her amortization for 2-3
succeeding days.
h. Savings and CBU account of the co-maker will be freeze, provided such account will be settled
by the concerned borrower.
i. Coop to identify place of acceptance of loan application and time of release of loan (Brgy hall;
morning)
Note: Submission of Application every Monday; Wednesday release of loan.
Note: Fines and Penalties will effect in the amount of Php 50.00 on top of the weekly
amortization. The penalty will effect when borrower fail to pay his/her weekly amortization for 2
consecutive weeks and thereafter.
Loan Approval/Signatory to Voucher and Loan Documents
Voucher: Prepared by the Bookkeeper; Recommended by: the Manager; Approved by: BOD Chairperson
Done this -------------- day of ------------------ 2024 at, Caridad, Jamindan, Capiz.
Prepared by:
ROMELA ZABALA
Secretary
Noted by:
VILMA MAJABAGUE WENIFREDO D. CORNELIO VIOLETA ALCAYDE
BOD Chairperson Vice-Chairperson BOD member
GODOFREDO REGIDOR NELSON NOBLEZA
BOD Member BOD Member
