Rediscounting Facility

This is a credit facility offered by the Bank to supplement the operating capital of Accredited Financial Institutions / Rural banks / Cooperatives.

Product Features

Loan Amount 85% of PN's face value but not to exceed Postbank's Loan ceiling.
Loan term Up to a maximum term of eighteen (18) months.
Repayment terms Client shall pay PPSB the amortizations on the Notes as they fall due in accordance with the amortization schedule(s) to be prepared for each release / availment.

Benefits

  • Lower interest cost on the loan during the rediscounting period.

Documentary requirements

  • Rediscounting Agreement.
  • Deed of Assignment.
  • Schedule of Borrower's Promissory Notes in batches according to maturities.
  • Individual Envelopes containing:
    • Borrowers Promissory Notes signed and verified by the Accredited Financial Institution.
    • Signed Borrowers Application Form (with pictures).
  • If Promissory Note is secured:
    • Real Estate Mortgage (REM) or Chattel Mortgage (CM) document duly signed, verified and registered with the Register of Deeds.
    • Original document of Transfer Certificate of Title (TCT), Tax Declaration (TD) or Certificate of Land Ownership Award (CLOA). If secured only by a Tax Declaration, a certification from the Register of Deeds or Bureau of Lands must be secured, stating therein that no title has been issued yet to the property.
    • Real Estate Tax Receipts (RETR) for the current year.
    • Location Plan.
    • Latest Appraisal Report certified by the Accredited Financial Institution.
  • If insured, must be properly endorsed in favor of the Rural Bank.
  • Latest Financial Ratios are within the guidelines.
    • Past Due Ratio not more than 30%.
    • Risk Asset Ratio not less than 10%.
  • Board Resolution to borrow and specimen signature of authorized signatories of the Accredited Financial Institution (AFI)