Question & AnswerQ&A (QUEDANCOR MEMORANDUM CIRCULAR NO. 376)
The purpose is to make credit available to casual government employees for livelihood projects and similar activities to augment their family income and create employment for their dependents or relatives.
A casual employee is one who has passed the probationary period but cannot be given a regular appointment due to lack of appropriate eligibility or to further test capabilities before regular appointment.
The employee must have at least two years of government service, six months with the present employer if transferred, not be on leave without pay, have at least 15 days of unexpended leave credits, have no pending criminal or administrative case, have a net monthly take-home pay of at least P3,000 after deductions, have a regular co-maker with salary grade equal or higher, and must have no past due loans under QUEDANCOR programs.
A co-maker is a regular or permanent state employee who is qualified and willing to pay the borrower's obligation in case of default.
The program covers casual employees in the executive, legislative, and judiciary branches, including state universities and colleges, LGUs, government-owned and controlled corporations, and other government instrumentalities.
The maximum loanable amount is equivalent to three months of the employee's monthly basic salary but cannot exceed P50,000.
The loan term is a maximum of three years with an interest rate of 14% per annum, computed using the straight-line method. Interest for the first year is deducted in advance and non-refundable.
Borrowers from Participating Government Agencies (PGA) or Participating Government Employees' Associations (PGEA) pay through payroll deductions. Borrowers from non-participating agencies pay via post-dated checks covering monthly amortizations.
A pre-termination fee of 3% of the outstanding principal is charged, except for restructured or rescheduled accounts, loans bought or rediscounted by banks not charging such fees, or loans paid in full within 30 days prior to maturity.
An SRT is a group of 3 to 15 agri-fishery farmers or employees from the same government agency forming an informal business group. The SRT collectively applies for loans, elects a Team Leader who collects and remits loan payments, and members jointly and severally sign their loan obligations.
The Team Leader is entitled to a 1% rebate on the total principal loan of the SRT group for timely payment and full loan settlement on or before maturity. The rebate can be deducted from the last amortization payment.
Required documents include a duly filled-out application form, certified photocopies of valid office IDs of borrower and co-maker(s), two latest 2x2 photos of the borrower, and payslips for the latest two payroll periods of borrower and co-maker(s).
No, a regular employee may act as a co-maker only once regardless of whether they have an existing loan under the IAL program.
The MOA is executed between QUEDANCOR and participating government agencies or employees' associations to formalize the terms and conditions for availment of loans under the program.