[Blueboard] AMPC Announcement

AMPC ampc at admu.edu.ph
Thu Aug 31 13:16:18 PHT 2006



----------------------------------------------------------------------------


          A N N O U N C E M E N T 


----------------------------------------------------------------------------


    The Board of Directors of Ateneo de Manila Multi-Purpose Cooperative has approved the following recommendations of Credit & Finance Committees:

    1.      Service Charge Rollback: Since Ateneo de Manila University has recently suspended its fees for payroll deduction, the two percent (2 %) service charge on all AMPC loan applications will be rolled back to one and a half percent (1 ½ %) effective September 1, 2006. AMPC had been imposing a 1 ½ % service charge on its loans for several years until the University raised its fees last year. The service charge is commonly imposed by banks as well as most lenders for loan transactions. It represents the cost of servicing/administering the loans including payroll costs for the personnel involved, computer software, maintenance and supplies as well as other incidental credit supervision and collection expenses. Interest charges on the other hand cover the cost of money used for funding the loans.    

    2.      Interest Rebate for Prepayment of Loans: Effective September 1, 2006, the unearned interest for pre-terminated loans (i.e. loans terminated ahead of maturity date) will be refunded to borrowers minus a pre-termination penalty. This penalty, equivalent to not more than two (2) months unearned interest on the remaining balance of the loan, may however be waived in case of employment separation (e.g. retirement or resignation) provided the loan balance is paid in full. A pre-termination penalty is usually imposed by banks and financial institutions because there is a cost to the lending institutions when previously programmed cash flow schedules are disrupted and adjustments have to be made. 


     

-------------- next part --------------
An HTML attachment was scrubbed...
URL: https://lists.ateneo.edu/pipermail/blueboard/attachments/20060831/74028e38/attachment.html 


More information about the Blueboard mailing list