Back to Back Loan:

BACK-TO-BACK LOAN

Back-to-Back Loan is a standby loan available to existing Savings and Time Deposit accountholders that intends to bridge financial gaps for personal and business purpose. It is a loan against deposits and is a better option for those looking to avail a loan at a lower rate when compared to personal loans where interest rates are usually higher. Moreover, you will continue to earn interest on the deposit though you have availed a loan against it. It is worth noting, however, that one cannot terminate or withdraw the deposit after availing the loan.

REQUIREMENTS

TIME DEPOSIT

1. 2 Valid IDs of Borrower and Spouse
2. 2×2 ID Picture of Borrower and Spouse
3. Four (4) copies of notarized Deed of Assignment of Bank Deposits
4. Marital consent shall be required as evidenced by the spouse’s conformity in the Promissory Note and Application Form
5. In case of corporate borrower, a Secretary’s Certificate is required authorizing the Corporation to secure a loan from the Bank, specifying the authorized signatories for the documents related to the transactions, and authorizing the corporation to use the bank deposit as a collateral for the loan
6. Certificate of Time Deposit duly endorsed by the depositor/assignor stamped “With Hold-Out”
7. Auto Debit Arrangement (ADA)

SAVINGS DEPOSIT

1. 2 Valid IDs of Borrower and Spouse
2. 2×2 ID Picture of Borrower and Spouse
3. Four (4) copies of notarized Deed of Assignment of Bank Deposits
4. Marital consent shall be required as evidenced by the spouse’s conformity in the Promissory Note and Application Form
5. In case of corporate borrower, a Secretary’s Certificate is required authorizing the Corporation to secure a loan from the Bank, specifying the authorized signatories for the documents related to the transactions, and authorizing the corporation to use the bank deposit as a collateral for the loan
6. Original passbook stamped “With Hold-Out”
7. Auto Debit Arrangement (ADA)

OTHER CONDITIONS

TIME DEPOSIT

1. Minimum Deposit of P100,000.00.
2. Minimum loanable amount is Php90,000.00 while the maximum loanable amount is 90% of total outstanding deposit balance at the time of loan availment, but in no case shall the loan amount exceed P5,000,000.00.
3. 7% interest per annum and other charges shall be computed for the duration of the loan term and will be collected in advance

SAVINGS DEPOSIT

1. Minimum Deposit of P100,000.00.
2. Minimum loanable amount is Php90,000.00 while the maximum loanable amount is 90% of total outstanding deposit balance at the time of loan availment, but in no case shall the loan amount exceed P5,000,000.00.
3. 5% interest per annum and other charges shall be computed for the duration of the loan term and will be collected in advance.