Panpacific University North PhilippinesUrdaneta City

Questionnaire for Comparative Study between Bank Loans and Criteria: Basic for Better Credit Policy

(For Bank Manager/Loan Officer)

Bank Name :________________________________Branch : _________________________________Name of Employee :_________________________Position Level :

___ Managerial Level ___ Supervisory Level

___ Staff/LevelBusiness Profile

1. Number of years in Operating in Urdaneta City?

______ 1 - 5 years_____ 6 - 10 year

______11 – 20 Years______ 21 and above

2. Write on the space the minimum and maximum requirement on interest rates of different type of loans.

Housing Loan

Auto Loan Business Loan

Personal Loan

Minimum Interest RateMaximum interest rateMinimum Loan AmountMaximum Loan Amount

3. Pls check (/) the common mode of payment of Loan.

Monthly Quarterly Semi-Annual

Annually

Housing LoanAuto LoanBusiness LoanPersonal Loan

4. Pls. check (/), What is the sharing requirement for the bank and borrowers equity?

70/30 75/25 80/20 Others Specify

Housing LoanAuto LoanBusiness LoanPersonal Loan

5. Pls. check (/), How many days after filling and submission of complete documents upon the approval of loan?

1-5 days 10 days 15 days 30 daysHousing LoanAuto LoanBusiness LoanPersonal Loan

II. Directions: Put a check () on the space that corresponds to your perception with regards to the degree of importance of Bank Loan and Criteria for Better Credit Policy of Banks of Urdaneta City.

Please be guided by the following scale:

4 - “Very Important” 3 - “Important” 2 - “Less Important”

1 - “Not Important ”

Character 4 3 2 11 The bank conducts credit investigation–thru

bank credit history and credit database information system from other financial institution.

2 The bank conduct interviews regarding personal life, lifestyle and vices for evaluation of borrowers character.

3 Submit the NBI Clearance, police clearance as measure of good character.

4 Special privilege to borrower when showing with good credit and moral standing in the community.

5 Borrower shows his tract record of being constant borrower and regular payor of the loan.

6 The borrower shows their integrity upon receiving awards, rewards, achievement and performances. (social, civic, professional and corporate)Collateral 4 3 2 1

1 Bank generally requires collateral inform of real estate, equipment or any other form of easily salable property.

2 The borrower requires submit documents such as OCT/TCT as the requirement of loan; CR/OR for Auto loan)

3 The bank requires additional guaranty if appraise value is lower the loan amount.

4 Proper inspection/appraisal of collateral has chances of being approve the loan application.

5 Tax clearance, tax declaration, and vicinity map are part of collateral loan.

6 Collateral if foreclosed, it serves or guarantees the payment of the loan.

7 Bank deposit,(saving/time deposit) insurance policy and money market can considers as collateral of loan.

Condition 4 3 2 1

1 The borrower provide an option to select loan terms and agreement (term or credit line)

2 The borrower has an option to choose the term of interest rate either fixed or variable rate.

3 Allows the borrower to extend or restructure the loan upon approval of bank management.

4 Agrees on penalties, surcharges and sanctions are imposed when default of payments principal and interest.

5 Provide 30 days of notice to pay or grace period in case delay payment of amortization.

6 Terms and conditions of contract/agreement have to mutually agree upon by both parties.

7 The borrower signs the promissory note or contract of loan and clearly understands the terms and conditions.

Capacity 4 3 2 11 Bank conducts in-deep analysis and

evaluation borrowers on their educational attainment; business experiences and other source of income such as their employment.

2 Bank assures that borrower should have at least at legal age; and test the ability to handle financial risk.

3 Conducts interviews on willingness to pay their interest and principal.

4 Borrower displays his ability or expertise to do good management; mentally, emotionally and physically.

5 Declaring of the assets such as bank deposit, saving/time deposit, paid insurance policy and money market.

6 Showing the willingness to sign the promissory note/agreements is manifestation to pay their obligation.

7 The borrower shows the competence to finance the borrower’s equity/share.

8 Presentation of business plan that has high profits potential indicates the capacity to pay his debts.Capital 4 3 2 1

1 Declare all personal possession and assets and or existence of sources of the capital such as real properties, jewelries, and cars.

2 The bank evaluates the borrower’s ability to produce additional capital resources.

3 The bank requires borrower to submit ITR documents for individual and if corporate financial statements.

4 The borrower provides proof of ownership of business or from real estate properties.

5 The requires other source of income/capital from savings, bank deposits, money markets

6 The borrower provides proof of evidence on investment securities such bonds and stocks.

7 Borrower shows ownership of investment from foreign companies, dollar deposits and money markets.

The Researchers