These are loans extended to members earning a fixed salary from their employers.
To be eligible to apply for Employee’s Loan, the following conditions must be present:
- The employer of the borrowing member must have an existing Memorandum of Agreement(MOA) with CFI whereby the former commits to remit to the latter payment of the loan obligations of the member through salary deduction.
- In the absence of an MOA, the member deposits with CFI the bank ATM card where his employer regularly deposits his salary whether weekly, semi-monthly or
- The borrowing member must submit proof of his basic salary and net take-home pay through employer’s certification or authenticated payslip.
At the CFI, we have the following loan types under this category:
A type of loan computed on the basis of the net take-home pay of a member’s monthly salary and payable in equal monthly installments depending on the chosen period.
Installment period for payment can range from a minimum of 12 months up to a maximum of 60 months.
Authorized Loanable Amount
A member may borrow for such amount as will not exceed the maximum authorized loanable amount.
The authorized maximum loan amount is dependent on the number of months applied for by the member as an installment payment period.
For the computation of the maximum loanable amount, please click here.
Manner of Payment
Salary loans may be paid either through salary deduction or through authorized deductions directly from the member’s bank account where his salary is deposited.
Payment through salary deductions will require an existing agreement between CFI and the member’s agency or employer to effect payment secured by the concerned member through salary deduction.
In case of direct payment through a member’s salary bank account, the member may either credit his ATM card issued for the said bank account or submit an authorization in favor of CFI for an automatic debit arrangement for the payment of the loan.
It is a form of a loan extended to a qualified member in advance of the mid-year and year-end bonus he will regularly receive in a year.
The amount of loan is computed on the basis of the member’s basic salary and can be availed of at least 7 months from the anticipated receipt of said bonuses.
Bonus loans are further classified into an agency or personal, depending on how repayment will be affected by the borrowing member. If it is effected through remittance from the member’s employer, then it is an agency bonus loan. Otherwise, it is effected through the member’s ATM salary card, and then it is a personal bonus loan.
There are two types of Bonus loans, Mid-year and Thirteenth month. They are both due for payment on May 30 and November 30, respectively, and may be availed of at least 7 months from the due date.
A form of a loan extended to members in advance of the anticipated clothing and grocery allowances said member would receive from his employer in a given year.
The maximum amount a qualified member can avail of is P5,000.00.
The same classification applied to salary and bonus loans will also apply to benefit loans.
Judicial Special Loans
Loans extended to members who are employed in the Judiciary in advance of certain allowances they will receive from the Supreme Court in a given year. There are several classes of these type of a loan that a qualified member may avail of, namely.
Economic Allowance Loan is a loan against the Allowance given to a member who is employed in the judiciary who receives Semi-Annually additional pay equivalent to their 1 month basic monthly salary in addition to midyear and year end bonuses.
Economic allowance is further reclassified into the following types:
Grocery Allowance (GAL)
Grocery Allowance loan is a loan extended to a member employed in the judiciary who receives the same benefit received at the end of the year.
Rice Allowance (RAL)
Loan extended to a member employed in the judiciary in advance of the Rice Allowance received every quarter of the year.
Judicial Development Fund(JDF)
A loan extended to a member employed in the judiciary in advance of the benefit in the form of Judicial development fund (JDF), which is received monthly in addition to his basic salary.