Professional Documents
Culture Documents
The importance of money has become so significant for live, that you
could not survive without it. It has become an essential commodity that helps
you run your life. Without money you will not be able to buy food, clothes and
shelter which happen to be the basic need of every individual. Money plays a
vital role especially in the business world for such reason that it serve as a
older practice and without any money, you cannot buy anything you wish. Money
has gained its value because people are trying to save wealth for their future
needs.
But with the way our economy is performing right now it will be hard for the
community to save even a single penny, especially those whose earnings is just
enough to reimburse their daily needs. So if ever the time comes that they
encounter misfortunes they will be left with no other choice but to borrow money.
public employees and teachers were given loan options in case of calamities with
to the satisfaction of every loan holder. Effective and efficient loan servicing can
will have insights about their perceived satisfaction on the loan servicing of GSIS-
Lucena. By performing this study, the researchers will be able to discover and
in terms of:
a. Receiving requirements
b. Terms and conditions
c. Processing
4. What are the problems encountered by the respondents on GSIS-Lucena
loans servicing?
Company- This study discloses new ideas and findings for the company
Members- This study helps the members present their feedback on GSIS
view. Lastly, it can help them reach more their financial awareness on the
perform their awareness and insights on the study. Also, this study tests the
on selected public schools in Lucena. The data used in the study is collected by
treatment of the problems presented in the study was able to be completed with
This study is limited only on the loan servicing that were provided
is also limited by the frequent problems that are encountered by the members of
Definition of Terms
Community- usually refers to a social unit larger than a small village that shares
common values.
Money- is any object or record that is generally accepted as payment for goods
or country.
CHAPTER II
This chapter discusses the related literature and the studies for better
information from internet, books, unpbulished thesis and other reading materals,
which served as basis for the study. It also includes the research paradigm and
conceptual framework.
an institution that provides financial services for its clients or members. Probably
the government.
Broadly speaking, there are three major types of financial institutions: Depositary
make loans, including banks, building societies, credit unions, trust companies,
Credit– Burrow (2010), stated that credit is the privilege of using someone else
money for a period of time. That privilege is based on the belief that the person
receiving credit will honor a promise to repay the amount owed at a future date.
The credit transaction creates a debtor and a creditor. Anyone who buys a credit
or receives a loan is known as a debtor. The one who sells on credit or makes a
Although the credit system uses forms and legal documents, it also
depends on trust between the debtor and creditor. Trust means that the creditor
believes that the debtor will honor the promise to pay later for goods and services
Bases of credit – According to Hubpages, The word "credit" has been derived
from a Latin word creditum. It meanstrust. Credit refers to the ability to acquire
something of value like goods, services, money, or securities at the present time
in return for a promise to pay at a certain future time. It involves risks. The
possibility that the borrower can not fulfill his promise due to circumstances
In granting credit to borrowers, there are bases in evaluating their ability to pay
Character. This refers to the personal integrity of the borrower. His determination
to pay can be evaluated by his past business record. Character also includes
Capacity. This has something to do with the managerial ability of the borrower.
Could he use wisely and efficiently his loan? Factors like responsibility, maturity
With such properties, the ability of the borrower to obtain credit has become
greater.
Collateral. Usually, the title of the land is required as a security of the loan. This is
a safety measure for the payment of the loan. Buildings, machines and other
Condition. Conditions in the community, industry, or the whole economy affect the
specifies, among other things, the principal amount, interest rate, and date of
repayment. A loan entails the reallocation of the subject asset(s) for a period of
the principal, from the lender, and is obligated to pay back or repay an equal
amount of money to the lender at a later time. Typically, the money is paid back
The loan is generally provided at a cost, referred to as interest on the debt, which
provides an incentive for the lender to engage in the loan. In a legal loan, each of
these obligations and restrictions is enforced by contract, which can also place
the borrower under additional restrictions known as loan covenants. Although this
article focuses on monetary loans, in practice any material object might be lent.
Loan Agreement- According to Outlaw, A loan agreement is the document in
which a lender – usually a bank or other financial institution – sets out the terms
Loan agreements are often referred to by their more technical name, "facilities
The mechanical section – sets out the operational terms of the agreement
such as the amount being borrowed, repayment schedule and interest. This is
the section which the finance director or treasury team of the borrower will pay
agreement including what each party must provide, their responsibilities to each
other, what happens if the borrower defaults on the loan and the extent to which
the parties to the agreement may change. This is the section which the lender
contract details of the parties, the relationship between the finance parties if there
is more than one tender and law which governs the agreement.
Obligation- According to Wikipedia, An obligation is a course of action that
someone is required to take, whether legal or moral. There are also obligations in
fulfilled. These are generally legal obligations, which can incur a penalty for non-
fulfilment, although certain people are obliged to carry out certain actions for
object entered into voluntarily by two or more parties, each of whom intends to
create one or more legal obligations between or among them. The elements of a
Proof of some or all of these elements may be done in writing, though contracts
may be made entirely orally or by conduct. The remedy for breach of contract
party at loss the "benefit of the bargain" or expectation damages, which are
greater than mere reliance damages, as in promissory estoppel. The parties may
or undertaking that something will or will not occur. The word promise can be
without consideration.
Requirement of a Valid Contract- According to Jentz (2010), There are
2. Considerations- money.
entered into.
enforceable contract.
Frauds requires that all Real Estate contracts with the exception of a
Only after all these requirements have been met can a contract be
In some cases the court can infer contract terms if they determine that
there was a contract. The two key items are the Who and What.
What - The obligations of the parties. How much, when and what is the
price.
Interest Rates- Mejorada (2001) stated that, interst rate is a rate which
is charged or paid for the use of money. An interest rate is often expressed as
percentage yield (APY) when the interested is earned, for example, from
example, for a credit card, a mortgage, or a loan, the interest rate is expressed
the environment. All perception involves signals in the nervous system, which in
turn result from physical stimulation of the sense organs.Perception is not the
civil government, and paid for, in whole or in part, by public funding from taxation.
Independent Variable
I. Company Profile
a. Historical
Background
b. Organizational
Structure
Research Paradigm
c. Technical Structure
c. Processing
Intervening Variable
Conceptual Framework:
The independent variable used in the study are the company profile, loan
servicing, and the respondent’s profile. Company profile touched the historical
background, organizational structure and technical structure. Loan servicing
The model considers the members perception on the loan servicing of GSIS-