Here’s what you need to know about the Loans offered by Cebu CFI COOP News & Articles
THE DIFFERENCE BETWEEN PERSONAL SALARY LOAN AND PERSONAL ADVANTAGE LOAN
In a digital age where you can apply for loan at your fingertips anytime, anywhere, most members still have difficulties identifying one type from the other.
One loan in particular gets mistaken from another. Although they sound almost the same, the Personal Salary Loan is totally different from Personal Advantage Loan.
The Personal Salary Loan, or previously known as ATM Salary Loan, is a type of loan that is computed on the basis of the net take-home pay of a member’s monthly salary.
The maximum loanable amount is dependent on the number of months applied for by the member as an installment payment period.
Installment period for payment can range from a minimum of 12 months up to a maximum of 60 months with a few exceptions for other institutions.
For the first availment of Personal Salary Loan, the member is required to submit their Certificate of Employment (COE) and 6 months Bank Statement / Latest Payslip. For renewal, the member only needs to submit their latest payslip.
For the mode of payment, the member may pay through authorized deductions directly from the member’s bank account where his salary is deposited. Or they can issue post-dated checks (PDC) corresponding to the monthly installments depending on the chosen period.
On the other hand, the Personal Advantage Loan (PAL), is the type of loan that is based on a member’s computed Monthly Installment Capacity (MIC) in relation to the installment period applied for.
The maximum loan a member can apply under this program is P1,000,000.00 provided it is within his computed maximum allowable loanable amount or even if a member’s MIC can justify a higher amount. The borrowing member can choose to pay the loan from a minimum of 12 monthly installments to a maximum of 60 monthly installments.
However, this loan may only be availed if the member does not have an existing amortized loan with CFI such as salary loan, professional loan, and the like. Exception to this are deposit loans and business loans. In order to avail this loan, the member must submit their latest Income Tax Return (ITR) and 6 months Bank Statement. The member is also required to visit the office for their interview. As collateral, the applying member is also required to surrender their Payroll ATM or issue post-dated checks (PDC) corresponding to the monthly installments depending on the chosen period.
All this said, to avoid delays in the processing of your application, one must learn to separate the forest from the trees.
If you wish to apply for these loans, go to your e-Services account at www.cficoop.com. Should you have concerns, you may send us a message at our Help Desk.