Rediscounting Facility

 

Overview

Rediscounting Facility is a credit facility intended to supplement the operating capital of Accredited Financial Institutions (AFIs) in delivering timely and adequate credit.

 

Product Features
   
Loan Amount
Shall be determined based on the following, whichever is the lowest, viz:
a.) Borrower's actual need / requirement;
b.) Paying capacity;
c.) Loan value against offered collateral; or,
d.) Single borrower's Limit (SBL) of OFBank (formerly Postbank)
Loan Term
Eighteen (18) months from date of approval
 
Mode of release

Direct credit to the borrower's account maintained at OFBank (formerly Postbank), or thru issuance of Manager's Check in favor of the borrower

Availability
Lump sum / one-time promissory note per batch maturity or in tranches as per client request duly supported by Notarized Board Resolution or Secretary’s Certificate
Interest Rate Based on the prevailing posted lending rate of the Bank at the time of loan availment or as may be contracted or agreed upon by the Bank and the borrower, provided that such rate does not drastically deviate from the prevailing posted rate and is well above the break-even threshold of the Bank
Interest Repricing  Monthly, Quarterly, Semi-annually, Annually and Fixed for the term
Mode of Repayment 
a.) Issuance of Post-Dated Checks (PDCs) covering all installments/ amortizations every repricing period; or,
b.) Direct debit from the borrower’s deposit account with OFBank (formerly Postbank); or,
 
Lump sum / one-time promissory note per batch maturity:
Principal and Interest: monthly amortization thru PDC per batch maturity
 
In tranches:
Principal: based on Sub-PNs, either monthly, quarterly, semi-annually or annually provided that sub-PNs which may be paid daily, weekly, semi-monthly or monthly shall be paid/remitted to the Bank monthly
      Interest: in arrears 
Collateral
Assignment of the Accredited Financial Institution’s (AFI), in favor of OFBank (formerly Postbank), of all its rights, title to and interest in the sub-loans or PNs of its sub-borrowers, inclusive of any and all of the collaterals (real estate/ chattel mortgages, pledges, guarantees, suretyships, assignments, holdouts), and the supporting documents thereof as required by the AFI from its sub-borrowers. 


 

Fees and Charges
 
 UPON APPLICATION:
Application Fee ₱1,000.00 / Not applicable for credit line renewals

 

 

 AFTER APPROVAL:
Bank Fees:  
Processing  / Service Fee 1,000.00 or 1/10 of 1% of the approved amount whichever is higher but not more than ₱5,000.00
Handling Fee ½ of 1% of the approved loan amount / Not applicable to credit line renewals
Third Party Fees:  
Documentary Stamp Tax ₱1.50 for every ₱200.00 of approved loan amount
Insurance
None, but for sub-loans that are insured, the insurance policy must be properly endorsed in favor of the AFI
     Notarial Fee Dependent on the nature of the document and based on the prescribed IBP rates



 

 CONDITIONAL FEES (UPON OCCURENCE):
Commitment Fee ½ of 1% of the undrawn balance, to be collected if no drawdown was made within the required period. Not applicable to Revolving Credit Line (RCL)
Pre-Termination Fee 3% of outstanding balance terminated within the term of the loan
Penalty 2% per month on amortization in arrears
Certification Fee
200 to cover cost of administrative expenses
Bank Guarantee - Fee ½ of 1% of the total amount in the guarantee letter
Bank Statement - Fee
30 per page upon request of the client except the monthly statement issued by the bank

 

Minimum Qualifications / Eligibility
 

To avail of this facility, the Financial Institution must be duly accredited by the OFBank.

 

 

Financial institutions shall refer to:
  • Rural Banks (RBs)
  • Cooperative Banks (CRBs / CBs)
  • Cooperatives
 
Documentary Requirements
  • Customer Information Sheet (CIS) of elected officials and signatories and Signature Cards
  • Presentation of at least one primary ID or two valid secondary IDs, one of which with photo and signature of authorized signatories and representatives
  • Application for the loan in the form of Board Resolution
  • Corporate documents
  • Financial Statements
  • Others as may be required

 

Contact Information

For more information, please feel free to call or visit your nearest or preferred OF Bank Branch.