Membership Policies
A. Membership Coverage
Membership is open to all persons, natural or juridical with capacity to contract and residing and/or permanently and gainfully employed for at least one (1) year in the area of operation as defined and delimited in Article III of the Articles of Cooperation.
B. Becoming an SJMPC Member
1. Attend the Pre-Membership Education Seminar (PMES).
2. Submit the following: (Fully accomplished membership application form, 1 pc. 2×2 ID picture, photocopy of any valid ID)
3. Pay the following fees: (P100 membership fee, P100 minimum initial share capital, P50 membership ID, P250 GAAN Contribution, Other requirements)
C. Member's Obligation
1. Pay the installment of Capital Subscription as it falls due.
2. Minimum due for share capital is P100/month.
3. Participate in the Capital Build Up and Savings Mobilization Activities if SJMPC.
4. Support and patronize the programs and services of SJMPC.
5. Attend the meetings and general assembly.
6. Observe and obey all lawful rules and decisions of the Board of Directors and in the General Assembly.
7. Promote the purpose, goals and success of the business and the welfare of the members of SJMPC.
D. Member’s Rights and Privileges
1. Attend the General Assembly (Participate in the deliberation during meetings and entitled to vote during election if qualified.)
2. Avail the services, continuing education and other training programs.
3. Inspect and examine the book of accounts, minutes, share register and other records of the cooperative during reasonable office hours.
4. Secure copies of the cooperative’s record pertaining to his/her own account.
5. Such right and privileges as may be granted in the General Assembly.
E. METV (Members Entitled to Vote)
1. Paid the share capital not less than P1,200 in a year.
2. Paid the monthly amortization.
3. Attend the Annual General Assembly.
4. A member of SJMPC not less than a year before the day of the Annual General Assembly.
General Credit and Procedures
General Credit Policy Statement
The cooperative, in enhancing the values of equality, equity and mutual self-help seeks to promote the concept of human development and unity by working together to achieve a better quality of life for the members and their families.
Principles of Capacity-Based Lending
The cooperative shall deliver effective and sustainable financial services to its members with the end view of developing the socio-economic condition of the community in general. To ensure this, the cooperative shall subscribe to the following guiding principles:
- The security of the cooperative is more important than the applied or requested credit needs of any individual member.
- To answer the needs of a borrower-member, the cooperative needs to evaluate the risk involved in lending and set the limit that the cooperative is willing to assume or grant.
- Loans are granted to members based on good standing and capability of the member to repay.
4. Each loan necessitates a thorough credit investigation.
5. The protection of savings, deposit and share capital of all members and the credibility and security of the cooperative are more important that the increase in the volume of transactions and operations and/or growth of assets.
6. A loan to members is privilege, rather than a right inherent to membership.
7. No other loans shall be extended to member-borrowers with delinquent accounts without valid justification.
8. The cooperative has to prove its financial soundness, operational security and ensure balance between risks, diversification and profitability.
9. To limit the risk of lending and to diversify the loan portfolio, the cooperative has to limit loans to members who are within the geographical area stated in the by-laws.
10. The loan portfolio is limited by type of loan.
11. All loans except loans equal to total deposits have to be secured sufficiently by co-makers and/or collateral.
12. The cooperative may finance viable projects up to 70% only the total project cost. The remaining 30% shall constitute the borrower’s counterpart.
13. Loans granted shall be charge an interest of 2% per month based on diminishing balance and fines of 2% in case of default.
14. The cooperative shall adopt capacity-based lending wherein any loan shall be granted based on a thorough evaluation of the applicant according to the 5C’s:
1. Character
his/her compliance of being a member in good standing
2. Capacity to Pay
how much is his/her disposable income, after deducting all expenditures (personal and family budget, payment of other obligations) from total income from all sources.
3. Capital
the borrower’s assets including sources of income.
4. Collateral /Co-maker
the kind and form of loan security that the borrower offers.
5. Conditions
personal circumstances, business climate, climatic and environmental conditions that could affect the borrower’s ability to repay the loan.
