IE 307

Engineering Economy

Group 4
Marzo, Shintaro D.
Masangcay, Keith James Y.
Mendoza, Ivy R.
Mendoza, Syrene Michelle P.
Montalbo, Rochelle L.
Piol, Marestel G.
Pita, Mark Neil U.
Populi, Clarissa M.
Pulla, Cleiv R.
Resurreccion, Joviron G.

BANK OF THE PHILIPPINE ISLANDS LIPA HIGHWAY

Company Profile
The Bank of the Philippine Islands (BPI) is a
commercial bank with an expanded banking license.
Together with its subsidiaries, BPI offers a wide range
of financial services that include corporate banking,
consumer banking and lending, investment banking,
asset management, securities distribution, insurance
services, leasing, and foreign exchange. These
services are offered to a wide range of customers,
from multinational corporations, government entities
and large corporations to small- and medium-sized enterprises and individuals.
Established on August 1, 1851 under Spanish colonial rule, BPI was originally known as El Banco
Espaol Filipino de Isabel II, named after then Queen of Spain, Isabel II. The Bank was the first to
be established in the Philippines, and was responsible for starting the country's banking and
finance industry. It performed many functions that in effect made it the country's de facto central
bank, including printing and issuing currency in its own name.
For many years after its founding, BPI was the only domestic commercial bank in the Philippines.
It adopted its current name on January 1, 1912.
Bank of the Philippine Islands is the oldest bank in the Philippines still in operation and is the
country's second largest bank in terms of assets, the country's largest bank in terms of market
capitalization, and the country's most profitable bank. It is owned by the Ayala Corporation - the
largest conglomerate in the Philippines, and is based in Makati's Central Business District, on the
corner of Ayala Avenue and Paseo de Roxas. BPI Lipa Highway is located at JP Laurel Highway,
Mataas na Lupa, Lipa City, Batangas 4217. As of 2014, it is currently listed in Forbes as the
Philippines' largest bank in terms of market value and overall ranking.

BPI Personal Loan

One of its services is providing Personal loan. BPI Personal Loan is a multi-purpose cash loan with
no collateral requirement and comes in affordable payment terms. With BPI Personal Loan, its
easy to get extra cash that you can use to provide for your needs today and fulfill your plans for
tomorrow.

Renovate Home

Repair/ Accessorize your car

Fund your childrens education

BANK OF THE PHILIPPINE ISLANDS LIPA HIGHWAY

Prepare for special occasions

Pay of your debt

Travel

Personal Loan is also a great and easy way to stay in control of your finances, given the
following:

Fixed interest rate for the entire term of the loan, so your monthly installment never
changes

Fixed term so you know how many payments you need to make to pay off your loan

Longer payment period gives you the flexibility to fit your monthly installment right into
your budget.

Monthly principal payments make sure that your outstanding loan steadily decreases
over time.

Amount of loan can range from 20,000 to 1,000,000, subject for the approval. With BPI, borrower
can choose among 12, 18, 24, 30 and 36 months to make his monthly installments light on his
pocket, also get the best deal and affordable payment schemes with an interest rate and effective
interest rate as shown below:
12

18

24

30

36

Monthly Add-On Rate

1.20%

1.20%

1.20%

1.20%

1.20%

Effective Interest Rate (annual)

25.60%

25.74%

25.59%

25.33%

25.03%

The desired loan can be got quickly and safely from the registered nominated account in BPI and
its scheduled installment will be automatically debit from the borrowers BPI deposit account.
The borrower can check to www.bpiexpressonline.com or 89-100 BPI Express Phone. Moreover,
he can also check the balance of his designated deposit account from his mobile phone to ensure
funding of his monthly payments.
BPI Lipa Highway is located at JP Laurel Highway, Mataas na Lupa, Lipa City, Batangas 4217 near
Robinsons Place Lipa with telephone numbers:

(043) 757-6063
417-6349
757-0971
0917-8722803

BANK OF THE PHILIPPINE ISLANDS LIPA HIGHWAY

Fees and Charges

Processing Fee. No cash-out. A minimal one-time payment of Php 1,500.00 will be deducted from
your loan proceeds.
Prepayment Fee. Never be penalized for paying off your loan earlier than your maturity date. Pay
only your outstanding principal balance and interest due on the date you decide to pay off your
loan.
Late Payment Penalty. In case you forget to pay your monthly installment on time, the unpaid
amount will be charged a late payment penalty of 5% per month.
Documentary Stamp Tax. For loan amounts greater than Php 250,000, the amount equivalent to
P1.00 for every P200.00 (or a fraction thereof) will be deducted from your loan proceeds.

Requirements

Filipino citizen

At least 21 years old but not more than 60 years old upon maturity of the loan

Residence or workplace should be within BPI serviceable areas (customer must be

physically present at the BPI branch to sign the loan documents once approved)

For Employed:

Minimum income of Php 25,000/month

At least 2 years with present employer.

For Self Employed:

Minimum income of Php 50,000/month

At least 3 years of profitable operations.

For Overseas Filipino Worker (OFW):

Minimum income of Php 30,000/month

At least 2 years with present employer.

BANK OF THE PHILIPPINE ISLANDS LIPA HIGHWAY

Sample Transaction:
Loan

30,000.00

Processing Fee

1,500.00

New Principal

28,500.00 = Loan Processing Fee = 30,000.00 1,500.00

Monthly Interest Rate

1.20%

Payment Period (months)

12

Periodic Payment

2,564.30 = P (1(1+)) = 28,500.00(1(1.012)12 )

Cash Flow Diagram:

0.012

BANK OF THE PHILIPPINE ISLANDS LIPA HIGHWAY

Amortization Schedule
Principal at the
beginning

Period

Interest per
period

Periodic
Payment

Payments to Principal at the

the Principal end

28,500.00

342.00

2,564.30

2,222.30

26,277.70

26,277.70

315.33

2,564.30

2,248.97

24,028.73

24,028.73

288.34

2,564.30

2,275.96

21,752.78

21,752.78

261.03

2,564.30

2,303.27

19,449.51

19,449.51

233.39

2,564.30

2,330.91

17,118.61

17,118.61

205.42

2,564.30

2,358.88

14,759.73

14,759.73

177.12

2,564.30

2,387.18

12,372.55

12,372.55

148.47

2,564.30

2,415.83

9,956.72

9,956.72

119.48

2,564.30

2,444.82

7,511.90

10

7,511.90

90.14

2,564.30

2,474.16

5,037.74

11

5,037.74

60.45

2,564.30

2,503.85

2,533.89

12

2,533.89

30.41

2,564.30

2,533.89

(0.00)