Back-to-Back Loan or Loan against Deposit Hold-Out is a facility extended to OFBank (formerly Postbank) depositors for their personal/ business financing needs. This type of loan facility is considered non-risk since the loan is covered and secured by deposit duly assigned by the borrower in favor of OFBank (formerly Postbank). For this purpose, OFBank (formerly Postbank) shall be empowered by the depositor, in event of default in the payment of all or any part of the loan, to withdraw from the deposit and apply an amount equal to the sum of such defaulted and unpaid 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)
Savings Deposit as Security
Maximum term should be for a period of two (2) years
Term Deposit as Security
In case of term deposits (e.g. Time Deposit, Premium Savings Plan), the term of the deposit placement shall be for a period of one (1) year, co-terminus with the approval of the loan.
Loan validity for term loans is for a period of thirty (30) days from date of approval.
The loan shall be considered cancelled if no availment was made within the validity period.
Revolving Credit Line
One (1) year from date of approval. Available via thirty (30) to one hundred eighty (180) days promissory notes
Availment from the line may be made any time within the 1-year validity period, provided that PN maturity does not exceed the expiry date of the line by sixty (60) days.
|Mode of release||
Either thru direct credit to the borrower’s account maintained at OFBank (formerly Postbank), or thru issuance of Manager’s Check in favor of the borrower
Term Loan: Lump sum
Revolving Credit Line: Lump sum or partial availment as per client request.
|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,
Term Loan: Equal monthly, quarterly, semi-annual or annual amortization (principal and interest), computed using the effective interest rate (EIR) calculation (diminishing balance) method.
Grace period may be granted up to a maximum of six (6) months subject to the approval of the approving authorities per approved CASA.
Revolving Credit Line:
Principal - lump sum payment upon maturity of PN, unless renewed; Option of ten percent (10%) partial payment of principal every PN renewal or partial principal pay down prior to line renewal.
Interest - collected in advance at drawdown date or collected in arrears
The loan shall be fully secured by the deposit maintained at Postbank, either by the borrower or co-borrower. Said deposit shall remain with Postbank for the full term of the loan. The types of deposits that can be assigned to this loan are savings account, premium savings plan (PSP) and time deposit (TD); provided that for a savings account, a separate account shall be opened solely for the hold-out deposit and no subsequent withdrawal shall be made that would render the deposit balance insufficient to cover the loan following the hold-out agreement.
Assignment of a current or checking account to secure a Back-to-Back loan is not allowed.
In Trust for (ITF) deposit account and under the name of a minor shall not also be accepted as collateral
Fees and Charges
|Application Fee||₱1,000.00 / Not applicable for credit line renewals|
|Processing / Service Fee||₱1,000.00 or 1/10 of 1% of the approved amount whichever is higher but not more than ₱10,000.00|
|Third Party Fees:|
|Documentary Stamp Tax||₱1.50 for every ₱200.00 of approved loan amount|
MRI: Based on the loan value
|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|
₱200 to cover cost of administrative expenses
|Bank Statement - Fee||
₱30 per page upon request of the client except the monthly statement issued by the bank
Minimum Qualifications / Eligibility
- Filipino citizens with the financial capacity to pay
- Main Borrower or Co-borrower must be an existing depositor of OFBank (formerly Postbank)
Duly filled-out Customer Information Sheet (CIS) One CIS shall be filled-out in the following cases:
If main borrower is the owner of the deposit
If main borrower and co-maker are both single / unmarried Two (2) separate CIS must be filled-out, in cases other than the above-cited
Duly filled-out Application Form (for main borrower only; co-maker to sign if there is any)
Any two (2) of the following identification (ID) documents (with at least one (1) photo-bearing) to determine the identity of the person / authorized officers or representatives (for partnership/ corporation) and his/her legal capacity to enter into contract (for both main borrower and co-borrower):
Proof of billing address for both main borrower and co-borrower (e.g. Electricity/ Water/ Telephone, etc.)
Marriage Contract for both main borrower and co-borrower (if applicable)
For Sole Proprietorship, Partnership, Cooperative, Corporation
If the main borrower is the owner of the deposit
- Special Power of Attorney, if the person authorized to sign in behalf of the single proprietorship is not the owner; or
- Partnership Resolution to borrow and Authentication of signatures duly notarized (for partnership); or
- Secretary’s Certificate of Board Resolution authorizing the loan transaction, the use of the deposit as a collateral for the loan and designating authorized signatory/ies for the documents related to the loan transaction (for cooperative and corporation)
If the main borrower is not the owner of the deposit
Certificate of Registration (DTI, SEC, CDA)
Articles and By-Laws
Certificate of Filing of Articles of Partnership (for partnership)
Articles of Cooperation and By-Laws (for cooperative)
Articles of Incorporation and By-laws (for corporation)
duly certified true copy by an authorized representative (with amendments if applicable)
Resolution/ Secretary’s Certificate/ Special Power of Attorney
Special Power of Attorney, if the person authorized to sign in behalf of the single proprietorship is not the owner; or
Partnership Resolution to borrow and Authentication of signatures duly notarized (for partnership); or
Secretary’s Certificate of Board Resolution authorizing the loan transaction, the use of the deposit as a collateral for the loan and designating authorized signatory/ies for the documents related to the loan transaction (for cooperative and corporation)
For more information, please feel free to call or visit your nearest or preferred OF Bank Branch.