ASIATRUST DEVELOPMENT BANK
1424 Quezon Avenue, Quezon City
Program Title: SALARY LOAN
Program Objective: To enhance employees’ benefits program without extra cost to the company. These are short-term multi-purpose loan package granted to regular employees of accredited companies subject to salary deduction scheme.
Criteria for Company Accreditation:
* Should be in operation for at least 3 years
* Profitable for the past 3 years
* No record of adverse findings with other financial institutions
* Should have at least 50 regular employees
Company Requirements for Accreditation:
* Company Profile
* Profile of Key Officers
* List of employees/Alpha List
* Latest 3 years Income Tax Return, Audited and In-House
* SEC papers and business registration
* Articles of Incorporation and By-Laws
* List of trade and bank references
Documentation upon Approval of Accreditation Line:
* Memorandum of Agreement (MOA) between the accredited company and Asiatrust Bank (under with or without company
* Board Resolution/Secretary’s Certificate authorizing the company to enter into a MOA with Asiatrust Bank and indicating the authorized signatories to the said MOA
* Duly signed Facility/Conforme Letter (stating the terms and conditions of the loan program)
* Regular employees for at least 2 years with a minimum gross monthly salary of PhP8,000.00 for rank and file and at least 1 year work tenure for Officers with PhP12,000.00 monthly compensation.
* Monthly installment of all loans outstanding with and outside of Asiatrust Bank should not be more than 30% of net monthly income.
* No adverse credit findings.
* Working capital for start-up/existing business;
* Appliance acquisition; education; debt consolidation; medical expenses; home improvement; lot downpayment; vacation travel expenses; family celebration; car repair/purchase/insurance payments; health and wellness; memorial services; etc.
* Minimum of P10,000; Maximum of P400,000.00
Interest Rate: Prevailing market rate
Maturity/Repayment: Payable for 6, 12, 18, 24 months; Up to 36 months for employees with more than 3 years work tenure.
Mode of Payment: Fixed amortization through salary deduction scheme to be remitted to the bank on a monthly basis via corporate check or to be debited from the mother company’s account with Asiatrust Bank.
Ms. Athena A. Arellano
Salary Loans Unit Head
Phone (632) 924.5648
* BACs and other Accredited Conduits that have yet to pass the RAAC (Type 2). These are institutions that are currently accredited with LBP but have yet to pass the RAAC for microfinance.
* Non-BACs/Potential Newly Accessing Cooperatives (PNAC) and other Organizations (Type 3). These institutions are not accredited with LBP but are considered critical in the delivery of financial services in the agri-fisheries sector.
Types of Financing Facilities:
* Portfolio Rediscounting – Through a credit line provided by LBP, the borrower organization/institution can lend to individual borrowers whose promissory notes (PNs) are endorsed to LBP for 100% rediscounting.
* Working Capital Loan – A short term loan to cover the operational and management expenses of an income generating project proposed by a borrower organization/institution.
* Term Loan – A loan with a longer period of repayment schedule to enable the borrower organization/institution to expand its project’s operational capacities and to increase its profits over a definite period of time.
* For Types 1 and 2 organizations/institutions, the additional loan to be extended shall be on top of existing approved lines provided that such borrower organization/institution does not exceed the absorptive capacity limits set by LBP.
* Type 1 organizations/institutions: Regular LBP limits shall apply
* Type 2 organizations/institutions: Regular LBP limits shall apply
* Type 3 organizations/institutions: Up to 85:15 debt to equity ratio but not to exceed P10.0 million
Interest Rates – the applicable interest rate for all types of borrower organization/institution shall be based on the prevailing interest rates of LBP.
* Portfolio Rediscounting: Up to 180 days
* Working Capital Loan: Up to 360 days
* Term Loan: Up to 3 years