Professional Documents
Culture Documents
INTRODUCTION
group and individual lending through Pangkabuhayan Group Loan Program which caters group
clients; and Pangkabuhayan Individual Loan Program which provides product and services for
individual borrowers.
Like in KASAPI Microfinance & Rural Development Inc. (KMRDI), the loans of KKPLI
clients are based on the capacity to pay (cash flow) and their character (attitude in payment).
KKPLI may also require safekeeping of collaterals for security purposes depending on the loan
Now, KASAPI – Lending opens windows for other products and services which clients can
avail. KASAPI – Lending loan programs are divided into two groups. One group is for income-
generating activities for potential entrepreneur clients while the other group of programs is
The KASAPI – LENDING BRANCH in City of San Fernando only offers the Small
Business Loan (SBL), Agri Loan, Salary Loan (Secured), Commercial Loan, and their special
loan programs such as Rice Consumption Loan (RCL), and the SKYdirect Loan (SDL). They do
not offer the Motor Vehicle Loan and the Micro-insurance. The KASAPI – LENDING
BRANCH in the City of San Fernando started in 2010 and it is headed by the branch manager
namely Mr.Ric Bernal Jr. and there are 9 employees who operates this branch.
The preceding topics contain the features, policies, and procedures on their loans
program.
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small entrepreneurs’ used for additional working business capital with a minimum loanable
amount of ten thousand pesos based on cash flow, capacity to pay and business use and collateral
requirements. The features of program, policies and procedures are shown in table 1 below.
FEATURES DESCRIPTION
1. Purpose - Additional capital for existing business
2. Type of Lending - Individual Lending
3. Target clients - Individuals with existing business
4. Client Eligibilities
4.1 Length of Membership - New or renewal
4.2 Repayment History - For renewal or post-SBL clients, must not have
loan in arrears
4.3 Age - 18 to 70 years old
4.4 Residency - At least one (1) year permanent resident of the
barangay
4.5 Capital Build-up (CBU) - 17% of the principal loan amount amortized
Requirement throughout the long term
4.6 Health Condition - Physically fit
4.6 Business Requirement and - With business existing for at least six (6)
Capacity months, and with net income of at least 25%
higher than the monthly amortization
5. Documentary Requirements
5.1 P7,000 – P14,000 amount of loan a. Original Barangay Business Clearance with
KASAPI loan purpose with Dry Seal
b. Business Pictures (1 shot inside and 1 shot
outside the store showing the business signage)
c. Latest Proof of Billing
d. Latest 3 pcs. 1x1 pictures
e. Photocopy of Valid ID of maker and co-
maker/s
f. Proof of other source of income (if any)
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g. 1 solvent co-maker
h. If co-maker is employed, photocopy of
company ID, COE or last 2 recent pay slip is
required.
5.2 P15,000 – P20,000 i. Above mentioned plus:
j. 1 solvent co-maker for P15,000
k. 2 solvent co-makers for P16,000 to P99,000
l. Photocopy of Barangay/Business Permit of co-
maker/s
m. Business Pictures of co-makers (1 shot inside
and 1 shot outside the store showing the
business signage)
It is a loan program extended for farmers used for additional agriculture fund to
finance its agricultural activities and the minimum amount is ten thousand pesos. The features,
FEATURES DESCRIPTION
1. Purpose - For farm maintenance
2. Type of Lending - Individual lending
3. Target clients - Farmers
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4. Client Eligibilities
4.1 Length of Membership - New or renewal
4.2 Repayment History - For renewal, must not have loan in arrears
4.3 Age - 18 to 70 years old
4.4 Residency - At least one (1) year permanent resident of the
barangay
4.5 Capital Build-up (CBU) - 17% of the principal loan amount to be
Requirement deducted in the loan proceeds. NO CBU is also
allowed
4.6 Health Condition - Physically fit
4.6 Farm Requirement and - With agricultural property of at least 1 hectare
Capacity - Preferably with other source/s of income
5. Documentary Requirements
5.1 For P10,000 to P20,000 amount of a. Original Barangay Clearance with “for
loan KASAPI loan purpose” duly signed by the
Barangay Captain or with barangay dry seal.
b. BARO/BARC Certificate stating that the
applying borrower is the legitimate owner or
the actual farmer tilling the farm land
c. Picture of farm / sketch of the farm land
d. 2 pcs. latest 1x1 picture
e. Photocopy of valid ID with 3 specimen
signature
f. Usufruct Agreement with the land owner in
case of rented/lease land
g. Proof of other source/s of income (remittances
or Barangay Clearance indicating that the client
is operating other business other than farming)
h. Photocopy of Business Permit of co-makers are
employed, or BARO/BARC Certificate if they
also have farm
5.2 For P21,000 to P99,000 i. Above mentioned plus:
j. OR/CR or TCT for safekeeping, with duly
accomplished Dacion en pago (means the
giving back of the property mortgaged to the
lender in exchange for the discharge of a
mortgage debt.)
6. Mode of Loan Release - Lump sum
7. Loan Size - P10,000 up to P99,000
8. Loan Proceeds Allocation - 100% cash - for farm expenses
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9. Loan Term
9.1. 4 to 6 months - Loan maturity must be synchronized with the
expected date of harvest.
10. Interest Rate - 4.5% per month
11. Charges and other Fees
11.1 Processing Charge - Pre-deducted; computed based on the loan
amount availed
12. Insurance
12.1 Loan Redemption Plan/ Crop - 1% of the principal loan amount monthly
Redemption Plan
12.2 Kami ay mga Mamamayang may - Pre-deducted – P135 + P100 monthly
Proteksiyong Inaasahan (KAMPI) depending on the loan term
13. Repayment Frequency
13.1 Semi-monthly/monthly - Interest payment and lump-sum upon maturity
13.2 Lump sum - Principal + Interest upon maturity
14. Mode of Payment - Cash/PDC/Palay
15. Guarantees
15.1 Guaranteed by two (2) co-makers - 1 relative and 1 non-relative
- Must also be engaged into farming, have
existing business or are currently employed
16. Penalties - 6% of past due amount
17. Rebate - Pre-termination of the loan will be allowed and
the rebate of 50% on the remaining interest
charge will be granted (at least one month prior
to loan maturity
18. Returnee - Clients who have closed account and after no
longer than 4 months, plan to avail loan again
19. Other conditions - None
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A loan program extended for those regular and permanent employees of any private
or public institutions such as schools, government offices, local hospitals, private offices, etc.
FEATURES DESCRIPTION
1. Purpose - Multi-Purpose
2. Type of Lending - Individual Lending
3. Target clients - Employees
4. Client Eligibilities
4.1 Length of Membership - New or renewal
4.2 Prepayment History - For renewal, must not have loan in arrears
4.3 Age - 18 to 70 years old
4.4 Residency - With the present serving areas of KASAPI
4.5 Capital Build-up (CBU) - None
Requirement - If the client agreed to accumulate CBU, 17% of
the principal loan amount amortize throughout
the loan term.
4.6 Health Condition - Physically fit
maturity of loan)
19. Returnee - Clients who have closed accounts and after no
longer than 4 months, plan to avail loan again
- Returning clients must undergo CI/BI
20. Other conditions - Co-makers should also submit COE if
employed or business permit if employed or
business permit for those with business
- Policemen, members of the Philippine Air
Forces, employees of the courts, BIR
employees, Brgy. Officials or any elected
government officials are not qualified
A type of loan given to qualified borrowers with collateral (Real Estate Mortgage). This
loan will serve as an additional capital for business. The features policies and procedures are
FEATURES DESCRIPTION
1. Purpose - Additional capital for existing business
2. Type of Lending - Individual Lending
3. Target clients - Entrepreneurial Men and Women
4. Client Eligibilities
4.1 Length of Membership - New or renewal
4.2 Prepayment History - For renewal, must not have loan in arrears
4.3 Age - 18 to 65 years old
4.4 Residency - At least one (1) year permanent resident of the
barangay
- Residence /Collateral is within present serving
area
- Business existence at least (60 months
4.5 Health Condition - Physically fit
4.6 Employment Requirement and - Regular private or public employees,
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A special loan window that aims to provide clients with opportunity of having optimum
quality of rice at marked down price. It is synchronized with their principal loan. This new
program is in line with KASAPI Enterprises’ vision of becoming one of the well-known
producers of quality rice in the City of San Fernando. The policies and procedures are shown in
table 5 below.
FEATURES DESCRIPTION
1. Purpose - Supplemental
2. Type of Lending - Individual Lending
3. Target clients - Individuals or households
4. Client Eligibilities
4.1 Length of Membership - New clients, without regular loan
- Clients with existing regular loan
4.2 Prepayment History - For clients with existing/ previous regular loan,
must have loan in arrears
4.3 Age - 18 to 70 years old
4.4 Residency - At least one (1) year permanent resident of the
barangay
4.5 CBU Requirement - None
4.6 Health Condition - Physically Fit
4.7 Business Requirement and - Same with existing regular loan
Capacity
4.8 Documentary Requirements - Duly accomplished RCP application form
5. Mode of Loan Release - One time released of time availed sack/s of rice
6. Loan Size
6.1 Client with existing regular loan - P100,000 above
6.2 Client without existing regular - Minimum of (1) sack, max. 2 (if beyond, by
loan request)
6.3 KASAPI employees - Maximum of 2 sacks probationary, maximum
of 4 sacks for regular employees;
6.4 Amount - Prevailing price of rice if paid CASH;
- Plus P50 if amortized
7. Loan Proceeds Allocation - Sacks of rice, no cash
8. Loan Term - 1 month
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A special loan window provided to clients, who may not have the means to avail in
cash SKY direct digital TV products, giving them the opportunity to have HD TV viewing
experience at affordable rates. The policies and procedures are shown in table 6 below.
FEATURES DESCRIPTION
1. Purpose - For luxury TV viewing
2. Type of Lending - Individual Lending
3. Target clients - Households
4. Client Eligibilities
4.1 Length of Membership - New or clients with existing regular loan
4.2 Prepayment History - For clients with existing/previous regular loan,
must not have loan in arrears
4.3 Age - 18 to 70 years old
4.4 Residency - At least one (2) years permanent resident of the
barangay
4.4 Capital Build-up (CBU) - None
Requirement
4.5 Health Condition - Physically fit
4.6 Business Requirement and - With business existing for at least six (6)
Capacity months, a regular employee or has farm
- With net income of at least 25% higher than the
monthly amortization
5. Documentary Requirements
5.1 For clients with existing regular - Duly Accomplished SDL application form,
loan SDL Loan Agreement, notarized
5.2 For applicants without existing - Duly Accomplished SDL application form,
regular loan SDL Loan Agreement, notarized
- Original Brgy. Clearance
- 2pcs. Latest 1x1 or 2x2 picture
- COE and valid ID if employed
5.3 For KASAPI employees - Duly Accomplished SDL application form,
SDL Loan Agreement, notarized
- Photocopy of ID of the applicant
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19.7 Co-existence with any regular or - Revolving credit line for special loans
amounting to same with client’s regular loan
other special loan
limit
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Analysis is the study of the strengths and weaknesses within the lending institutions and
their credit and collection policies. This will be done by the researchers to synthesize strategies
for improving the credit and collection policies, standards and practices of the lending institution.
Strengths is the advantageous or even unique skill, competency, or service that the lending
disadvantage, such as skill that the lending institution lacks which limits it and creates potential
STRENGTHS
Stable cash handling. The KASAPI LENDING BRANCH has an effective policy in
handling cash.
Low interest rate. The low interest of their loan programs attract borrowers which are
fixed at 4.5%, and it is below the market-based interest rate. Lending interest rate (%) was
reported at 7.843 in 2018, according to the World Bank collection of development indicators,
Wide operations. According to our interview, they have also clients outside the city.
Some are from Bauang, Naguilian, San Juan, Luna etc. They provide sustainable and client
responsive solutions to the greater number of Filipino not just here in the city but all in the
province.
Prompt approval and disbursement of their program loans. After the approval of the
Branch Manager, it will be passed to the cashier for the releasing of loan, there is on time
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processing credit line – up to processing of credit application only takes three days unlike other
Accurate record of their credit and collection policies and procedures. The KASAPI
– LENDING Branch has a formal manual book of the credit and collection activities, features,
policies, and procedures for them to master and understand well. This could be the basis to
present its policies and procedures to the customers who wants to avail a loan.
WEAKNESSES
No penalties for SKY Direct loan program. The KASAPI– LENDING doesn’t give
penalties on the customers who availed the sky direct program. Based on the company’s policy
and procedures, they only give penalties on the five programs which are the small business loan
program, Agri-loan program, salary loan program, commercial loan program and rice
consumption program. The customers who availed the programs will only penalize with 6%
penalty rate if they exceeded to the loan term provided by the company.
No interest rate for rice consumption loan program. The KASAPI LENDING doesn’t
give interest rate to the customers who want to avail the rice consumption loan program. The
company may generate low revenue because of not providing interest rate to the customers who
Numerous loan requirements. The KASAPI LENDING requires the customers who
want to avail loans to pass all the corresponding documentary requirements. All requirements are
listed on their policy and procedures; the customers need to complete all of the requirements
before the loan they want to avail will be granted. It may tend that the customers not to continue
to acquire loan because of the numerous requirements to complete and pass to the loan processor.
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Limited loan programs. The KASAPI LENDING only offers six types of programs to
the customers. They do not offer other loan programs because there are certain processes to
follow and accomplish before the company will grant these loans to the customers.
RECOMMENDATONS
1. The KASAPI Lending should give penalty on SkyDirect loan for them to generate
income in this program. The company should give different penalty rates on each type of
programs because all programs have the same penalty rate. The company should increase
the penalty rate on the program that has a large loan size.
2. The KASAPI LENDING should give an interest rate on the Rice Consumption Loan
Program. Giving interest rate on this program helps the company increase its income and
the company will able to expand its programs to be offered to its valued customers.
3. The KASAPI LENDING should minimize the customer requirements to attract them to
apply loans they want to avail and promote customer retention policy to attain long-term
4. The KASAPI LENDING should offer additional programs to the customers like housing
loan, car loan, doctors loan, pensioners loan, and personal loan-land based. These loans
could be helpful to the company to generate higher revenue. The more programs they will
offer to the customers, the higher the income they will get.
5.
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APPENDIX
INTERVIEW DAY