Intel Multi Purpose Cooperative Policy on Vehicle Assistance Loan (VAL)
• ELIGIBILITY IMPC member who are already five (5) years of service with INTEL and have been an IMPC member for two (2) years. Eligible member has the option to convert Housing loan into vehicle loan, subject to 35% Minimum take home pay. He/she can avail one loan at a time. AMOUNT OF LOAN The maximum loan amount is P200,000 subject to the credit limit.
The credit limit set by the BOD for every IMPC members will be 4 times of FD plus 50% of retirement pay. In no cases the total accumulated loan of any IMPC member will exceed the Credit Limit set by the board of directors.
• INTEREST RATE, SERVICE FEE and TERM OF PAYMENT 12% interest based on diminishing balance added on to the principal amount; 2% service fee; payment up to maximum of three (3) years COVERAGE OF LOAN No specific brand or model, depends on the budget of the member. OTHER PROVISIONS Minimum take home pay of 35%; Both husband and wife can avail the whole amount provided their credit limit suffice the requirement of this loan; No record of delinquency for the past two (2) years with IMPC; Within the credit limit
Pre-requirements prior to processing of Vehicle Assistance Loan application General Requirements Duly signed Vehicle Assistance loan policy in all pages (together with spouse’s signature if married). Duly signed Vehicle Assistance loan application from (together with spouse’s signature if married) Car quotation from the dealer or vendor or jeepney assembler with complete address, telephone, fax numbers, TIN # of dealer or vendor (identify whether VAT or NON- VAT). 4. Proof of availability of funds to pay the difference of the cost of car and loan able amount based on car loan application as employee’s share or equity. Examples are: current bank statement of account with account name and account number, official receipt from car dealer if employee provided earnest money. 5. If Married: Original Certified True Copy of Certificate of Marriage; If Separated: Notarized Affidavit of Separation; If Widowed/Spinster: Original Certified true copy of Death Certificate 6. Photocopy of latest Community Tax Certificate 7. Duly signed Mortgage Redemption Insurance (MRI) 8. Stencil of chassis & motor numbers in original Land Transportation Office (LTO) form 9. Notarized and duly signed letter of undertaking from employee 10. Duly signed chattel mortgage agreement of employee & spouse (if married) 1. 2. 3. Additional Requirements for Second Hand Cars 1. Copy of appraisal report from IMPC accredited car appraiser. Appraisal fee should be in expense of member borrower.
Note: The loaned amount will be computed after the vehicle has been appraised. The said amount will be computed based on the vehicles appraised value and the employee's eligibility limit whichever is lower 2. Photocopy of official receipt & certificate of registration (OR/CR) If mortgaged with other financing institution, release or cancellation of mortgage must be submitted; If OR/CR is not yet transferred under the name of the vendor, deed of sale between the prior owner and vendor; If OR/CR is under the name of a company, secretary’s certificate must be submitted
Additional Requirements for Newly Assembled Passenger Type Jeepneys or Owner Type Jeeps 1. 2. Business registration certificate assembler with seal of Domestic of Trade and Industry (DTI) Copy of appraisal report from IMPC accredited car appraiser
Additional Requirements on the Assumption of Mortgage Loan 1. Original certificate of loan balance from the bank or financing institution. Note: If the loan able amount is greater than the loan balance with financing institution the proof of availability of funds to pay (the difference between the loan balance to be assumed and loan able amount with IMPC) as employee’s share or equity must be submitted. Such as current bank statement of account with account name and account number, acknowledgement receipt/official receipt from vendor Copy of appraisal report from IMPC accredited car appraiser. Photocopy of official receipt & certificate of registration (OR/CR) Copy of mortgage contract between the employee & financing institution Secretary’s Certificate (If OR/CR is under the name of the financing institution)
2. 3. 4. 5.
How can I avail of this benefit? Step 1 Action Apply and submit Vehicle Assistance loan application form with the pre-requirements prior the processing of loan application and pre-requirements prior the release of loan fund. Verify pre-requirements prior processing and route for approval (hardcopies and softcopies) Verification Process: Step 1 Action Check whether pre-requirements have been submitted and inform loan availed on the status of loan application Who Loan Processor Who Borrower
Routes for approval
Level First Level Approval Second Level Approval Third Level Approval
Who IMPC Manager
Any one (1) member of BOD
3 4 5
Issue confirmation letter for the approved loan application. Get the confirmation letter from IMPC staff Get signed undertaking from the vendor to confirm the transaction between the employee & the vendor. Note: Deadline for submission of signed undertaking is every Wednesday. Payment will be done every Thursday of the following week.
Loan Processor Borrower Borrower
Cheque preparation. Release loan cheque to vendor/borrower in exchange with the requirements prior to the release of the loan based on the checklist.
Accounts Payable Loan Processor
Post requirements prior to release of loan fund General Requirements 1. 2. 3. Duly signed chattel mortgage agreement of employee & spouse (if married) Original OR/CR under employee’s name. If not available, a Letter of Undertaking from vendor/employee with commit date of release of OR/CR Copy of Comprehensive Insurance policy with IMPC as the beneficiary.
Other Requirements for Brand New Sedan-Cars 1. 2. Original copy of sales invoice Official receipt of the payment to the vendor
Other Requirements for Second Hand Sedan- Cars 1. 2. Notarized Copy of Deed of Sale Official Receipt/Acknowledgement Receipt from vendor/used car dealer
Other Requirements for Newly Assembled Jeepneys- Owner Type Jeeps 1. 2. 3. Official Receipts for the check to be released (The subsequent releases shall be the equivalent amount of receipts evidencing purchases of materials, etc.) Receipts presented evidencing cost of car/jeep and materials have reached 80% of quoted price. Appraisal Report by IMPC accredited appraiser at 100% completion. Check shall be released only upon receipt of appraisal report. Appraisal shall be made upon completion of the vehicle, prior to the release of the remaining 20% of the loan able amount. 1. If appraised value is less than the declared value : The loan able amount shall be re-computed based on the appraised value. The release and payment of the remaining 20 percent of the loaned amount shall be adjusted accordingly based on recomputed amount. If the amount paid to the employee exceeds the recomputed loan able amount, employee returns the excess amount within 15 days from receipt of notice. 2. If appraised value is greater than declared value, employee receives immediately the remaining 20 percent of the loaned amount
Other Requirements for the Assumption of Mortgage
Original official receipt & certificate of registration under employee’s name and cleaned to any encumbrances; - controls (there are assumption of mortgages not yet named to them. Vehicle Assistance Loan Security Loan must be covered by Chattel Mortgage (CM). It is a legal requirement in registration of mortgages in the Registry of Deeds. Expenses incurred by in registering the vehicle with the Register of Deeds and Land Transportation Office (LTO) shall be charge to member-borrower. IMPC will mandatory cover the amount of loan with a Mortgage Redemption Insurance (MRI) through IMPC accredited insurance supplier. The purpose of MRI is to provide protection to member and member's beneficiary in any case of employee's death where the total outstanding loan balance will be fully paid at the time of death. The insurance premium shall be in the expense of the employee. The employee should be responsible in securing their own Third Party Liability (TPL) and Comprehensive Insurance coverage indicating IMPC as the beneficiary. IMPC will safe keep original official receipt & certificate of registration. In case employee borrows the Original documents, employee will follow IMPC borrowing procedures. Failure to return on the date specified employee will be subjected to the IMPC discipline discharge policy.
SIGNATURE OF BORROWER / DATE
SIGNATURE OF SPOUSE / DATE