Loan Products

Agricultural Agrarian Back to Back Commercial
Financing Housing Lot Purchase Motor Vehicle
Other Pension Salary Loan Terms
Int. Requirements


Agricultural Loans

Granted for rice production, coconut production and livestock or poultry.


  1. Pre – harvest loans are granted to farmers and cooperatives for purchasing inputs such as seed, fertilizer, feed, livestock, and fuel at the of growing season.
  2. Post – harvest loans is granted to provide farmers and farming cooperatives sufficient liquidity to cover operating costs while holding an inventory of finished products until prices are advantageous for sales/ Loans are made to farmers and cooperatives to support on-farm holding of products and to allow farmers to avoid having to sell products immediately after harvest to pay their production loans.
  3. High Value Crop
  4. Livestock loans are granted to farmers to purchase feeding and breeding livestock when the moment is most advantageous for them.
  5. Other agricultural activities

Eligible Borrowers

  1. The applicant should be engaged in the production of the crop, or the raising of animals, for which the loan is being offered.
  2. The applicant must not have an outstanding, past due loan with Rural Bank at the time of application.
  3. The applicant must have at least two (2) years experience in the farming or animal raising activity for which the loan is being applied for. If the venture is new, he should prove that the venture will be managed by persons with comparable level of experience in the particular field to be engaged in.
  4. The applicant must prove that the farming activity is profitable (or will be profitable by the next crop cycle or growing cycle after the infusion of capital to be obtained from the loan).
  5. The applicant should own land used for agricultural production/animal raising, or have verifiable proof of authority as usufruct. Moreover, there should be no obstacles to such land being encumbered or alienated (sold). For example, land covered by CLOA cannot be sold within the period required by law, starting from the date of award.
  6. The applicant should demonstrate his capacity to supply reasonable percentage of the total project cost as his own equity.


Agrarian Loans

Loan Purpose:

  1. Production or acquisition of work animals, (carabaos, cows, horses)
  2. Other farm equipments and machineries
  3. Purchase of farm implements – Acquisition of Land
  4. Seeds (binhi)
  5. Fertilizers
  6. Poultry
  7. livestock
  8. Feeds
  9. Construction and/or acquisition of facilities for production, processing, storage and marketing
  10. Purchase of farm utility motor vehicles
  11. Rice/Corn Copra Drier


Back to Back Loans

Loanable amount with deposits is 80% plus a spread rate of plus 3% over existing TD or savings rate


Commercial Loans

Commercial loans are granted to retail or wholesale merchants for the purpose of purchasing commodities for resale which are considered necessities or semi-necessities and are of general acceptability and quick turnover.

Loan purpose:

  1. Additional Capital for business
  2. Capital for business
  3. Whole sale/retail trade
  4. Business expansion


Financing Loans

 Re-financing of an existing Housing or Real Estate Loan,

  • Statement of account/certificate from the concerned institution of housing loan balance to be refinanced must be submitted, with written consent to refinance issued by the authorized representative of the financing institution. 

Loan Purpose: 

  • Refinancing of an existing house loan secured from another bank/financial institution
  • Refinancing of an existing house loan secured from another bank/financial institution with renovation or improvement of the housing unit; and
  • Re-financing of an existing real estate loan secured from another bank/financial institution with financing of the renovation or improvement or construction of the housing unit


Housing Loans (Construction or Renovation)

Loan Purpose:

A client may utilize this loan facility for any of the following purposes:

  • Acquisition of house and lot
  • Acquisition of condominium unit
  • Acquisition of lot/s and construction of a housing unit;
  • Construction of a house on titled lot in the name of the applicant and/or spouse

Construction, Renovation and Improvements requirements:

  1. Plan and specifications of the proposed building
  2. Bills of materials duly signed by the licensed Architect or Civil Engineer
  3. Building Permit

Loans Term

  • The term is minimum of five (5) years and maximum of 20 years


Lot Purchase

Loan Purpose:

Real Estate/Lot Acquisition

Initial documents to be submitted by the borrower: 

  1. Transfer Certificate of Title with mortgage duly annotated
  2. Tax Declaration of the house and lot
  3. Deed of conveyance/absolute deed of sale
  4. Promissory Note properly accomplished and signed
  5. Copy of mortgage contract duly executed
  6. Fire Insurance/Acts of God insurance policy (if applicable)
  7. Occupancy permit issued by the appropriate agency.


The bank shall pay the price/cost of the purchase lot/s or housing unit on cash basis, for the account of the borrower, direct to the seller/contractor as soon as all documents are submitted.


Motor Vehicle Loan

It is a loan granted to finance acquisition of motor vehicles such as motorcycles, tricycles, and automobiles. The vehicles so acquired should be used for personal purposes. If the vehicles are to be used for commercial purposes (e.g. vehicle for hire, delivery van, and etc.), the loan should be treated as a commercial loan. Motor vehicle loans may also be granted as the security of vehicles already owned by the borrower.

Loan Term:

Bank policy prescribes maturities of 1 year up to 5 years in motor vehicle loans. In exceptionally meritorious cases, maternity of more than 5 years may be allowed. 


Collateral primarily takes the form of the chattle mortgage on the motor vehicle financed. Other collateral may be required by the bank as warranted.


Bank policy requires that both the borrower and motor vehicle be secured by adequate insurance coverage. Due care should be taken that insurance coverage include coverage against what are popularly known as “acts of nature”.

Loanable amount:

Loanable amount is a maximum of eighty percent (80%) of current market price of new vehicle, seventy five (75%) of current market value for vehicles that are less than one year. Seventy percent (70%) for vehicles more than one (1) year but less than three years from the date purchased brand new. Vehicles older than 3 years should be appraised on a case to case basis but loanable amount should not exceed 65%.

Other requirements:

  1. The borrower must be gainfully employed and/or with a profitable business in Pagadian City for atleast 3 years.
  2. Permanent residents of Pagadian City. May also be permanent residents if adjacent municipalities. Transients that are otherwise qualified must be justified in writing for approval.
  3. Must have a co-maker who is gainfully employed of legal age.
  4. The loan must be supported by a hold-out on existing deposit with the bank. The motor vehicle shall be required to open an account with Rural Bank of Pagadian, Inc. with a minimum of P10,000.00 and to make periodic deposits, including payments.

It must be remembered that liquidation value of motor vehicle is not the primary objection of the bank. Thus, the need for additional protection such as co-makers and maintain balance with bank.


Other Loans

Other loans are granted for the acquisition of household equipment and appliances or for personal consumption.

Loan purpose:

  1. Purchase of Vehicle
  2. Purchase of Machineries
  3. Medication
  4. Bills and Supplies
  5. Other finances


Pension Loans

This program aims to provide financial assistance to GSIS/SSS/PVAO pensioners for their income generating projects and providential purposes 


  1. Permanent resident of Pagadian City or adjacent region. GSIS/SSS/PVAO pensioner; and,
  2. Not more than 70 years old upon maturity of the loan.

The last requirement may be varied if the borrower is able to obtain insurance coverage notwithstanding that he/she is 70 years or older at the time   of maturity of the loan.

Loan Term: 

It should be one (1) to three (3) years. In exceptionally meritorious cases, may be longer than three (3) years but not to exceed five (5) years.

Mode of Payment:

Payable monthly or as far as payment concedes with borrower’s pension, if pension is granted other than on a monthly basis. 

Loanable Amount:

Maximum amount is eighty percent (80%) of the pension received by the borrower, net of living expenses and loan amortization with other banks.

Additional Requirements 

  1. Three (3) months bank statement for the account where the pension is being credited.
  2. Duly signed deed of assignment;
  3. Pensioner’s ATM card with corresponding PIN number and written authority to withdraw to satisfy payments due.


Salary Loans

For school tuition or other school-related needs, home repair or makeover, purchase gadgets or home appliances, medical needs and other personal needs.

Product Features:

  1. Regular/Elected/Appointed Municipal Officials
  • Must be a regular/permanent employee or casual employee
  • Must have sufficient outstanding leave credits
  • Must not over 65 years old at the time of application
  • Must have two (2) co-makers who are co-employees of the applicant
  • Must have no pending administrative and/or criminal case
  • Must be willing to authorize the treasurer/cashier/disbursing officer of the employer to make deductions from his salary remittance to the bank and/or surrender their ATM Cards.
  • Must be willing to pay life insurance coverage
  • Must be willing to open/place savings deposit account with the bank.
  1. Elected/Appointed Municipal/City Employees and Barangay Officials
  • Must have at least one (1) year of service from the remaining term of the applicant at the time of application.
  • Must not be over the retireable age at the time of application
  • Must have two (2) co-makers who are employees of the applicant
  • Must have no pending administrative and/or criminal case
  • Must be willing to authorize the treasurer/cashier/disbursing officer of the employer to make deductions from his salary remittance to the bank and/or surrender their ATM Cards.
  • Must be willing to pay life insurance coverage
  • Must be willing to open/place savings deposit account with the bank.

Loanable Amount:

Maximum of Thirty Thousand Pesos (30,000.00) subject to the following conditions: 

  • That the computed monetization of remaining leave credits shall not fall below the applied loan amount;
  • That the net pay after deducting the new amortization shall not below 3,000.00 at the time of application;
  • That the applicant is not yet due for retirement within the term of the loan

Term of Loan

  • Maximum of three (3) years

Mode of Payment

  • LGU – Automatic salary deduction by the Treasurer/Cashier/Disbursing Officer who shall remit the quencina/monthly amortization not later than five(5) days after the last payroll date for Dep. Ed, PNP, BJMP, Fire through ATM.

Loan Availment

  • Renewable as long as the capacity of the borrower warrants.

Mechanics/Documentary Requirements:

Elected Officials

  1. Notarized Municipal Resolution signed by the Honorable mayor to avail of financial assistance from the bank;
  2. Notarized Memorandum of Agreement;
  3. Original duplicate copy of the recent received payroll summary or payslip duly signed by the Cashier;
  4. Oath of Office of each municipal official availing of the loan;
  5. Upon submission of the above documents by the Municipal/City Treasurer, the Municipal/City Officials shall be given the loan documents from the bank which shall be duly filled-up/signed such as:
  • Application form
  • Certification of Employment and undertaking for the employer to make automatic deduction from the salary of the borrower
  • Promissory Note
  • Co-maker’s Statement
  • Notice of deduction for the Treasurer/Cashier signed by the borrower 

Additional Requirements:

  1. 2x2 I.D Picture
  2. Residence Certificate
  3. Oath of Office
  4. Appointment by the Mayor
  5. 2 Valid IDs

Regular Appointed LGU Municipal Employees 

  1. Notarized Memorandum of Agreement to be executed by and between the City/Municipal, Mayor/Treasurer or Manager and duly authorized representative of the Bank.
  2. Upon submission and notarization of the above MOA, the bank shall be give the following forms for accomplishment/submission of the same.
  • Application form
  • Certificate of Employment and undertaking
  • Promissory Note
  • Co-maker’s Statement
  • Notice of deduction for the Treasurer/Cashier signed by the borrower
  1. Submission by the employee of the following additional requirements:
  • Certification by the employer of the net take home pay of the applicant
  • 2x2 I.D picture
  • Residence certificate for the current years
  • 2 valid IDs
  • Appointment


Loans Terms

Minimum Allowable

Regardless of the amount, the minimum allowable term for the loans shall only be for a period of thirty (30) days. However, loan accounts with continuing credit lines may be allowed to apply terms of less than thirty (30) days.

A continuing credit line shall only be good for one (1) year of 360 days and renewable thereafter. Renewable of a continuing credit line may be accepted even before the expiration of the previous credit line.

Maximum Allowable

Regardless of the amount, the maximum allowable term for loans shall only be for one (1) year or 360 days. Loan applications for loan terms of more than one (1) year or 360 days shall be treated on a case-to case basis and require the approval of the Board of Directors.

Modes of Repayment

Irrespective of amount, loans may be repaid on a daily, weekly, bi-monthly (quincena), monthly, every-2-months, quarterly, every 4 months, semi-annual basis, or annual basis. As much as possible, the bank should avoid single payment loans (loans payable only upon maturity).

Grace periods, whereby the borrower is allowed to defer payments of bank charges and/or principal amount within a certain loan term, shall be treated on a case-to-case basis.

Eligible Borrowers

Any Filipino citizen residing in place preferably within the territorial jurisdiction of the bank; must have permanent employment; he must be at least twenty one (21) years of age but not more than sixty five (65) years old; he must at least be a depositor of the rural bank;


Initial Requirements for Secured Loans

  • Photocopy of Title
  • Sketch Plan with vicinity map
  • Latest Tax Declaration on lot (building if applicable)

Requirements for Unsecured Loans

  • Memorandum of Agreement (MOA)
  • 2 valid identification cards
  • 1x1 or 2x2 picture of applicant
  • Personal Data
  • Payslip (6 months backward)/latest IRR
  • Latest Community Tax Certificate
  • Co-Maker Statement

Requirements for Co-maker

  • 1x1 or 2x2 picture
  • 2 valid identification cards
  • Payslip (6 months backward)/latest IRR
  • Co-Maker Statement