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Cordova Multipurpose Cooperative Blog

13Aug 2016

Productive Loans

Do you need ADDITIONAL CAPITAL for your business? Visit YOUR COOP today?
Cordova Multipurpose Cooperative

  • The member must have share capital of at least 20% of the aggregate loan amount applied for and NOT have any past due loan amortization on other loans with the Coop
  • Member operates or owns an established business enterprise
  • Member should submit the detailed working capital requirements of the business
  • The loan amount must be solely for the use of business working capital
  • Flexible term
  • Interest Rate (Diminishing Method)
    • * Fully Secured – 21% Annual Effective Rate
    • * Partially Secured – 22% Annual Effective Rate
    • * Unsecured – 23% Annual Effective Rate
  • Loan Charges
    • * 1% Retention Fee
    • * 2% Collection Fee
    • * 3% Service Fee
  • Loan Protection Insurance – loan amount divided by 1,000 and multiply by 0.53 cents and multiply again by the term (no. of months) or ((loan amount/1,000)*0.53*term in months)

Other Features

Working Capital Loan

1. Flexible term: Max. of 6 months

2. Mode of Payment: Daily, Weekly, Bi-Monthly & Monthly

Credit Line Loan

1. Availment may be made by way of 30-360 days Promissory Notes (PN) with a minimum amount based on the volume of the credit line

2. Flexible term: Max. of 12 months

3. Mode of Payment: Daily, Weekly, Bi-Monthly & Monthly

Fixed Asset Acquisition Loan

1. Member operates or owns an established business enterprise and needs a fixed asset for such business enterprise

2. For Lot/Building & Lot Purchase, there should be a contract to sell between the member & the owner-vendor

3. Flexible term: Max. of 36 months

4. Mode of Payment: Monthly

Fixed Asset Construction Loan

1. Member operates or owns an established business enterprise and needs a fixed asset for such business enterprise that is to be constructed

2. Flexible term: Max. of 36 months

3. Mode of Payment: Monthly

Micro Enterprise Loan

1. Member should submit the detailed working capital requirements of the micro-business

2. The loan amount must be solely for the use of micro- business working capital

3. Flexible term: Max. of 4 months

4. Mode of Payment: Daily, Weekly, Bi-Monthly & Monthly