QUEDANCOR OFFERS EASIER PAYMENT TERMS
TO DELINQUENT BORROWERS
To maintain partnership with defaulting clients as well as help them resuscitate their livelihood activities, the QUEDANCOR offers three settlement packages to its defaulting borrowers so that they could afford to pay their overdue loans under a package that would fit their present paying capacities.
The agriculture credit guarantee agency, QUEDANCOR, launched the Account Remediation Program, Loan Modification program and Small Claims program which provide better payment options to overdue accounts with condonation of penalties and surcharges, reduction of interest, and longer terms of payment.
The Account Remediation Program (ARP) is:
- Where borrowers are offered flexible terms and conditions of loan;
- These include provisions for reduction or condonation of incurred surcharges and penalties.
The Loan Modification Program (LMP) offers the following conditions:
- Clients are offered a repriced interest rate;
- Term extension after paying a required advancement payment of only 1% of the outstanding loan and;
- Termination of surcharges and other related fees.
The Small claims, is the third loan settlement option and offers the following:
- Clients will be sent a demand letter;
- A proper case will be filed in the Small Claims court.
To avail any of the three loan settlement packages, interested clients may follow these procedures:
- Go to a QUEDANCOR Field Office nearest to their area, where a staff of QUEDANCOR will assist them on how to settle their outstanding obligation by matching their case to any of the Settlement packages being offered by the Corporation;
- A borrower may bring an already written proposal of settlement or he may approach the staff of the QUEDANCOR Field Office as to the options of settlement which will fit his present financial situation;
- After determining his capacity to pay, the Quedancor staff will document their agreements on how to settle his loan by executing a Debt Rescheduling/Restructuring Agreement;
- This undertaking states the new terms and condition of the loan account and sends this agreement/proposal to the concerned official for evaluation and approval of the same.
In approving the applications for these loan packages, QUEDANCOR observes the following:
- For loans P500,000 and below, approval can be at the level of the Regional Assistant Vice President (RAVP);
- Above P500,000 to P8 million, approval comes from the Senior Vice President for Loans Management;
- Loans above P8 million needs the approval of the President & CEO of QUEDANCOR.
QUEDANCOR promises to render an action to all application for settlement in at least five working days up to 15 working days at the most depending on the gravity of the case or amount of loan being negotiated.