ANNEX G

ABC LOAN GUIDELINES FOR BANK STAFF: FILLING OUT LOAN APPLICATION FORMS

This guideline aims to ensure that the following loan application forms namely: loan
application form; credit investigation form; co-maker’s profile; repeat loan application form;
and repeat credit investigation form, are correctly filled-up to avoid delays in the processing
and approval of all loan applications. The account officer should make sure that all loan
forms are properly and completely filled-up before the concerned parties affix their
signatures. The supervisor is also expected to review the work of the account officer and
ensure that all the forms have been properly completed before endorsing the loan
application to the credit committee.

A. LOAN APPLICATION FORM

After the client orientation, interested applicants may either fill up the loan application form at
the bank or bring this home and submit at a later date. In any case, the account officer
should be able to explain each item in the application form to ensure that this is properly
filled up.

 Account Officer: If assisted by an account officer, name of account officer who

facilitated the applicant’s loan application.

 Client Identification Number: Number assigned to client on the first application.

PERSONAL DATA

 Name: Full legal name of the applicant.

 Nickname: Any other name by which the applicant is known.

 Photo: Paste the applicant’s photo on the right hand corner of the loan application form.
This must be the most recent photo of the applicant, 2 x2, close-up photo, not an old cut-
out photograph.

 Identification Number: Identification number of applicant, if any.

 Type of ID: This may be any of the following: passport, driver’s license, voter’s ID,
taxpayer’s ID, or business permit.

 Home Address: Current residential address of applicant.

 Home Telephone: If any, home telephone number or any other number where the
applicant can easily be reached.
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 Date of Birth: Day, month, and year of applicant’s birth.

 Age: Age of applicant at the time of application.

 Place of Birth: Town and province, or city where the applicant was born.

 Sex: Indicate whether applicant is male or female.

 Civil Status: Indicate whether the applicant is single, married, widowed or separated.

 Name of Spouse: Name of husband/wife/common-law spouse, if any, who can be

contacted in the event the applicant cannot be located during the life of the loan.

 Occupation of Spouse: If spouse is working outside the home, in what capacity is

spouse employed.

 Number of Dependents: The number of family and other household members who are
financially dependent on the applicant.

 Home Ownership: Indicate whether house is owned, rented, mortgaged, or shared with
another family.

 Number of Years in the Community: How long in terms of months or years the
applicant has lived in his/her present address.

BUSINESS ACTIVITY

 Type of Business: The nature of business the applicant is engaged in: e.g., sari-sari
store, market vendor, carinderia/eatery/bakery, transport, fishing, food processing,
“viajero” or buy and sell, crafts and light manufacturing, agriculture non-crop, or personal
services.

 Business Name and Address: Indicate if the business has a duly registered business
name, as well as his/her business address. If applicant operates from his/her residence,
write the address of the residence or indicate: “same as residence”.

 Business Telephone: If any, telephone number that is being used by the business.
Indicate if this number is the same as the residential telephone.

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 Number of Years in the Business: How long, in terms of years, the applicant has been
operating his/her business.

 Business Partner: If applicant has a business partner, full name of the business partner.

 Estimated Business Assets: Estimated amount of the business’ total value including
cash, collectibles, inventory, and fixed assets.

 Estimated Monthly Sales: Estimated amount of income from business sales every
month. If sales are generated on a daily basis, this amount should be multiplied by the
number of days the business is open within the month.

 Is your business registered? Is the business registered with the Barangay Office,
Municipal Treasurer’s Office, DTI, BIR, and/or Public Market Administration Office? Tick
“Yes” or “No” box.

 Who looks after your business when you’re sick or away? Explain what
arrangements are made for managing the business in the applicant’s absence.

 Are you involved in other business activities? If applicant has other secondary
business activity other than the main business. Tick appropriate box.

 If yes, what type of business? See type of business selection.

 Are you employed apart from owning a business? If applicant has another source of
income in the form of employment other than operating his/her own business. Tick
appropriate box.

 If yes, where? Name and location of company/office, or department/agency if a

government employee.

 Office Telephone: Self-explanatory.

 Status of Employment: Applicant should indicate “regular” if working full-time and

enjoying full employment benefits; “contractual” if working on a casual basis without
employment benefits; “others” if employed in a capacity other than the two status
mentioned. Please indicate.

 Name of Employer: Name of applicant’s employer or immediate superior.

 Address of Employer: Current address of applicant’s employer or immediate superior.

PURPOSE OF LOAN

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 How much do you want to borrow? The applicant should indicate the amount he/she
wants to borrow.

 For how long? Indicate if applicant would like to pay his/her loan within one, two, or
three months.

 Purpose of Loan? The business activity for which the loan is going to be used.

 How often can you afford to pay? How frequent the applicant can pay his/her payment
dues: daily, weekly, or monthly.

 How much can you afford to pay? How much the applicant can pay if he/she chose to
pay weekly, daily, or monthly.

 Do you have any outstanding loan? Indicate if applicant has current debt to any
person or lending institution. Tick appropriate box.

 If yes, how much is your outstanding loan? Amount of any/all outstanding loan(s) of
the applicant.

 Does your spouse have any outstanding loan? Indicate if applicant’s spouse has
current debt to any person or lending institution. Tick appropriate box.

 If yes, how much is his/her outstanding loan? Amount of any/all outstanding loan(s)
of the applicant’s spouse.

 Name(s) of creditor/supplier: The name of all persons, banks and/or other institutions
the applicant and/or his/her spouse has an outstanding loan.

 Name at least one creditor/supplier that you have borrowed from in the past:
If the applicant has no outstanding loan at the time of the application but had previous
loans in the recent past, the applicant should supply the name(s) of the creditor/supplier
for credit investigation purposes.

 Do you have a bank deposit? Does the applicant have a savings deposit at the time of
the application? Tick appropriate box.

 What bank? If the applicant has a bank deposit, indicate the name of the bank.

AUTHORIZATION

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The applicant must read this section thoroughly and the account officer must make sure that
the authorization is explained and well understood by the applicant and the spouse.

 Signature of Applicant/Spouse: After the application form is completed and the

authorization is read, the applicant and his/her spouse affix their signatures.

 Date/Place: Date when and place where the form is completed.

 Account Officer’s Guide: The account officer may draw or ask the applicant to
draw a map location of his/her house and/or business location on a separate sheet of paper.
This is a useful guide for rural banks in urban areas or in case another account officer takes
over the client’s account. Clip the map sheet with the loan application form and then with the
CI form when the credit investigation is conducted.

B. CREDIT INVESTIGATION FORM

This section will guide the account officer in filling up the credit investigation form. The CI
form is divided here according to major sections to better illustrate each item that the
account officer needs to master. It also guides the account officer on how to ask the
applicant and other credit and character references during the CI process.
RURAL BANK OF XYZ, INC.
CREDIT INVESTIGATION FORM

ABC LOAN
NAME OF APPLICANT/CO-MAKER:

Business Registration/Stall Lease Agreement (if any):

MAIN BUSINESS ACTIVITY: NO. OF PAID EMPLOYEES:

 Name of Applicant: Full legal name of applicant.

 Business Registration/Stall Lease Agreement Number (if any): If registered with

Barangay Office, Municipal Treasurer’s Office, DTI, BIR, and/or with the Public Market
Administration Office.

 Main Business Activity: See types of business.

 Number of Paid Employees: How many paid workers does the business employ?

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HOUSEHOLD COMPOSITION

HOUSEHOLD COMPOSITION
HOUSEHOLD MEMBERS CURRENT OCCUPATION/ REGULAR
AND DEPENDENTS (Starting ECONOMIC ACTIVITY MONTHLY
SCHOOL / BUSINESS/EMPLOYMENT ADDRESS
with Proprietor) NET INCOME

SIZE OF TOTAL MONTHLY

HOUSEHOLD HOUSEHOLD NET INCOME

 Household Members and Dependents: Name of all family members, as well as

relatives and other household members who are dependent on the applicant and his/her
spouse. Include the applicant in the list.

 Current Occupation/Economic Activity: Note whether each household member is a

student, currently working as an employee, laborer, entrepreneur, or unemployed. If the
applicant is employed apart from running his/her own business, supply address of the
workplace.

 Regular Monthly Net Income: This is a fixed amount of monthly net income of each
household member, such as salaries, pension, monthly overseas remittances, and/or any
other income that is fixed on a monthly basis.

 School/Business/Employment Address: If household member is working, indicate

employment address. If he/she has a business, indicate business address, and if a
student, write the school address, including year level and section (or course degree if
college). This information is especially important for banks in the urban areas.

 Size of Household: How many persons, family members and non-family members live
with the applicant in his/her residence.

 Total Monthly Household Net Income: Total of all the regular monthly net incomes of
each working household members.

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WORKPLACE CHARACTERISTICS

Does the applicant own, rent, or share the business and/or residential premises. Is the
business home-based or ambulant? This can be a multiple response, i.e., the premises may
be rented both for residence and business purpose, making the business both rented and
home-based.

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WORKPLACE CHARACTERISTICS

Owned Home-based Rented Ambulant Shared Others (specify)

BUSINESS

RESIDENCE

PAYMENT RECORDS

The following items are for illustrative purpose only. The applicant may have other payment
items that may need to be inspected other than the sample bills indicated.
PAYMENT RECORDS
Receipts of Bills (e.g.) Documents Supplied Ave. 3-months Receipts Comments (on-time/delinquent, etc.)
Water
Electricity
Installment Plan
Mortgage/Rental payments
5-6 payments

 Receipts of Bills: may include water, electricity, installment purchase, housing

amortization or house rent, 5-6 payments, etc. Note the name/business name and
address of each.

 Documents Supplied: Indicate what documents were supplied by the applicant to

examine payment records, e.g., 3 monthly receipts on utilities, payment receipts for house
rental, payment receipts from suppliers/creditors, 5-6 credit payment card, etc.

 Average 3-months Receipts: Total the bills/payments for each month and get the
average for utility bills. These figures will be later entered into the cashflow form.

 Comments: Does the applicant have a good payment record? Indicate whether payments
were made on time, erratic, or overdue, or if applicant has any outstanding payment
balance.

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BUSINESS SEASONS
BUSINESS SEASONS (High/Average/Low)
Business Activity Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Major Business
Secondary Business

Record the trends in sales for each business activity for every month of the year, indicating
the high, average and low seasons of the business in terms of sales. Enter H, A or L as
appropriate in the relevant columns. Leave blank if there is no secondary business activity.

BUSINESS INFORMATION

In this section, the account officer should ask the applicant some basic information about
his/her business. The first column lists the market factors namely clients, supplies, and
production/sales. On the second column, write down the description for each of these factors
and note down potential problems and risks on the third column. Descriptions and potential
problems/risks for each market factor are explained below.
BUSINESS INFORMATION
Factors Description Potential Problems/Risks
1. Clients Who are your main clients? Are there threats to your client base?

2. Supplies Where do you get your supplier of raw materias and/or finished Are there threats to obtaining your
goods? supplies?

Are the goods bought in cash, on installment, or consignment?

3. Production/Sales/ How do you sell your goods/services? Are there threats to your production/sales/
Services services?

4. Others Are there other market factors that may affect your business operation?

 Business Factors: Clients, supplies, production/sales/services, and other market

factors affecting the operation of the business.

 Description: The guide questions will help the applicant describe his/her clients,
supplies/supplier, production/sales/services, and other business factors that may affect
his/her business.

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GuideQuestions Possible Answers

Who are your main clients? Neighbors, farmers, students, wives, employees,
businesses, etc?
Where do you get your supplies of Within town, from the neighboring town or city,
raw materials and/or finished bigger grocery stores, panels, etc.
goods? (Ask the name of the supplier/s.)
Are the goods bought in cash, Any or a combination of these three. Sari-sari
installment, or consignment? stores, food processing, and carinderia usually
buy their supplies and raw material in cash.
Public market vendors may obtain their goods on
consignment or installment.
How do you sell your Clients come over to his/her place of business or
goods/services? the applicant visit his/her clients at home/place of
business.

 Potential Problems/Risks: Are there any threats to the client base, goods/supply,
production, and sales? Indicate in this section if there is any likelihood that these could be
affected in any way. Examples of possible threats are: new competition for the trade or
business, within or outside the community, with whom applicant will now have to compete;
the likelihood of not being able to obtain goods on a regular or timely basis; power-
outages, labor problems; staff changes, etc; that may affect production, sales and
services.

INVENTORY OF ASSETS

Inventory of assets is conducted as a means of counterchecking the applicant’s declaration of

income against the actual assets he/she has acquired. For example, if the applicant
exaggerates information regarding his/her sales and income but there is no evidence of
household or business properties, this may have an impact on the loan application. It is also
a means of looking at a client’s potential for bigger loans that will require some form of
security or collateral in the future.

Inventory of assets, therefore, ascertains the existence, legal ownership, condition, and value
of the property, and whether these assets are already fully paid or are still being paid for. The
account officer must always endeavor to inspect, check, and appraise the assets of
applicants especially when these assets are offered as collateral or security. Careful
inspection of these assets will provide an effective fallback measure for the bank in case of
failure to pay by the borrower.

The assets include both household and business assets such as appliances, inventory of
stocks, and other chattel items.
INVENTORY OF ASSETS
Qty Description Appraised Loan/ Acct. Age Condition Supplier
Value Balance

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TOTAL APPRAISED VALUE

 Quantity: This refers to the number of each asset owned by the applicant.

 Description: This refers to all business and household assets, including fixed and
movable assets such as business equipment, vehicle, appliances, etc.

 Appraised Value: This is the present market value of the assets mentioned.

 Loan/Account Balance: Amount, if any, still owing on any of the assets, i.e.,
installment payables.

 Age: Number of years since the asset has been bought.

 Condition: This is the present condition (e.g. very good/good/poor) of the assets
mentioned.

 Total Appraised Value: The total market value of all assets.

SAVINGS HISTORY

This section will determine how much cash the applicant has available for personal and/or
business use. Sources of savings may include other rural banks, commercial banks,
cooperatives, credit unions and informal savings groups such as bubo-ay/huloga.

SAVINGS HISTORY AND REFERENCES

Name/Address of Institution Amount
1.
2.
3.
TOTAL SAVINGS

 Name and Address of the Institution: The name and address of the institution where
the savings account is held.

 Amount: The balance in each savings account at the time of completing the ABC loan
application.

 Total Savings: The total savings balance of the applicant from all his/her savings
accounts in various savings institution.

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CREDIT HISTORY

This section will establish the applicant's ability and discipline in making regular and
consistent loan payments, including loans from suppliers and other non-bank creditors. The
account officer must verify credit references as soon as possible by contacting persons with
whom the applicant had any previous relationship which required the making of regular
payments.

CREDIT HISTORY
Name/Address of Creditor/Supplier Previous Loan Outstanding Due Date Amount of Payment/
Amount Loan Amount Frequency
1.
2.
3.
TOTAL LOANS OUTSTANDING

 Name and Address of Creditor/Supplier: The name and address of bank, supplier, and
other creditor from whom loan and/or credit purchase was last received. This includes
monetary loans from banks and other creditors or purchase loans from suppliers.

 Previous Loan Amount: The amount of previous loan already been paid at the time of
the interview.

 Outstanding Loan Amount: The amount of present loan still owing at the time of the
interview.

 Due Date: The maturity of the outstanding loan.

 Amount of Payment/Frequency: Indicate the amount of payment due each time and if
payment schedule is daily, weekly, or monthly.

 Total Loans Outstanding: The sum of all outstanding loan amounts at the time of the
credit investigation.

BUSINESSS ASSETS, LIABILITIES AND NETWORTH

This portion should only include the business assets, liabilities and networth.
BUSINESS ASSETS BUSINESS LIABILITIES AND NETWORTH
Cash and Bank P Loan Payables P
Accts. Receivable Other Payables
Raw Materials
Goods in Process TOTAL BUSINESS LIABILITIES
Finished Goods TOTAL BUSINESS NETWORTH
Other Assets
TOTAL BUSINESS ASSETS TOTAL BUSINESS LIABILITIES
AND NETWORTH

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A. Business Assets

 Cash and/or Bank: This refers to the amount of cash the applicant has available on
hand and/or in the bank for immediate use. If there is no separate account for the
business, list the balance from any account(s) of the applicant.
 Accounts Receivable: Amount owed to the business by customers but not yet collected.

 Raw Materials: Value of material not yet in production. These include such things as
wood for furniture-making; cloth and supplies for dressmaking; and cement, gravel, sand
for block making, etc. If involved in merchandise and sales, the value of all goods in stock.

 Goods in Process: Value of goods in production but not yet finished. These include
such things as unfinished furniture, dress, etc.

 Finished Goods: Value of goods ready for sale. This also includes stock in a vendor's
stall.

 Other Assets: Any item of value not included in the above categories.

 Total Business Assets: This is the sum of the applicant’s cash and bank, accounts
receivables, raw materials, goods in process, finished goods, and other business assets.

B. Business Liabilities and Networth

 Loan Payables: Amount owed by the applicant in relation to the business. These
include short-term loans, long-term loans and amounts due to suppliers/creditors.

 Other Payables: Any other amount owed by the applicant and other liabilities such as
taxes, insurance/health premiums, small lay-away items, etc.

 Total Business Liabilities: The total of all monies owed by the applicant due to the
business.

 Total Business Networth: Equity and accumulated profits made by the applicant.
This is the difference between Total Assets and Total Liabilities.

 Total Business Liabilities and Networth: Total Liabilities plus Networth – this should
always be equal with the total business assets.

ACCOUNT OFFICER’S OBSERVATIONS/CONCLUSION

The account officer should indicate in this section any important observation, whether positive

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or negative, which may have an impact on the credit approval. He/she should also include
the loan amount recommended based on the result of his/her credit investigation, cash flow
analysis, and debt repayment capacity analysis.

ACCOUNT OFFICER’S OBSERVATIONS/CONCLUSION

CERTIFICATION

The account officer must certify that he/she has correctly completed the credit investigation
form based on a thoroughly conducted credit investigation and cashflow analysis. After a
careful review, the supervisor notes his/her approval by signing at the left-bottom section of
the form. If there are mistakes and missing information that need verification, the supervisor
must not sign and endorse the application to the credit committee.
CERTIFICATION

I hereby certify that all the information stated in this credit investigation report is true and correct and that I shall be held responsible for any
misinterpretation.

Name/Signature of Account Officer: ____________________

Date: ____________________

Noted by:
__________________________
Supervisor

 Name/Signature of Account Officer: Name and signature of the account officer in

charge of the applicant’s loan application process.

 Date: Date of completion of the credit investigation process.

 Signature of Supervisor: Affixed after the supervisor is satisfied that the credit
investigation is properly completed.

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C. CASHFLOW FORMS

Cashflow Form Worksheet: Preparing for the cashflow analysis

The income and expense section of the CI form will require a separate CI worksheet to
determine the income of the business and its raw materials expense for 3 timeframes – daily,
weekly, and monthly. The account officer should use this worksheet to prepare for the
business income and expense portion of the CI form and determine, in the end, how much
the client could borrow. Remember, asking the right questions and probing will help a lot in
doing a good cash flow analysis. With enough practice, asking the series of questions below
and doing further probing will become very easy.

There are two separate cashflow worksheets for retail business (sari-sari store, buy and sell,
etc.) and manufacturing and personal services (carinderia, furniture-making, food processing,
beauty parlor, welding, etc.).

1. Worksheet for Retail Business

Worksheet 1: Sales and Purchases

To know the estimated daily, weekly, and monthly sales of the applicant, the account officer
may use the following questions as a starting point:

1) How many days in a week are you open for business? (This question will help the
account officer later in the cashflow analysis in determining the applicant’s daily and
weekly sales.)

2) What are your highest sales on a good business day? How many days in a week do
you earn this amount? Can you tell me what days are these (Enter response in
Worksheet 1).

3) What about on a slow business day, what are your lowest sales? How many days in a
week do you earn this amount? Can you tell me what days are these? (Follow same
instructions in Q2.)

4) And what about on an average business day, what are your average sales? How
many days in a week do you earn this amount? What days are these? (Follow same
instructions in Q2.)

Now that you have the respondent’s estimate of high, average, and low daily sales, you can
now make an assumption about his her daily sales for the week. To estimate these amounts,
be careful to take into consideration the days that the respondent mentioned as high,
average, or low days.

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5) Add the daily sales to get the weekly sales and multiply this by four weeks to get the
monthly sales. See example below.

Worksheet 1. Sales and Purchase

Note mean daily sales
DAY
here:
Daily Sales
Monday 800 Mean daily sales
Tuesday 600 800 * (1/6) = 133.34
Wednesday 600 600 * (5/6) = 500
Thursday 600 133.34 +600 =633.34
Friday 600
Saturday 600
Sunday 0
Weekly Sales (A) 3,800
To get monthly income: 15,200
Multiply (A) by 4 weeks
(Ax 4)

6) Mean daily sales: multiply each daily earnings by the number of days this amount is
earned divided by the number of days the business is operating. Add up all these
sums to get the mean daily sales. See example above on the third column.

7) Proceed to worksheet #2.

Worksheet #2: Cost of Good Sold and Sales Multiplier

In the case of buy and sell activities such as retailing or wholesaling, instead of using
expenses for purchases made during a week (or month), some of which end up as inventory,
your questions should focus on the cost of goods sold.

In order to estimate cost of goods/purchases of sari-sari and buy-and-sell shops, we can use
a simple sales multiplier with the daily, weekly, and monthly sales figure to arrive at the
estimated cost of goods/raw materials for each time frame. The following steps will
determine your sales multiplier:

1) Ask the respondent between 5-6 main products that represent the majority of his/her
sales. You may ask:

What are the most common items that you sell every day? (Write these down in the
Product column).

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2) For each of the products, list in the appropriate columns the following information:

QUESTIONS TO ASK:

GO THROUGH EACH QUESTION FOR

EACH OF THE 5 OR 6 ITEMS:
 Wholesale cost of the
1) Can you tell me how you buy
product;
______ for your shop?
2) By wholesale or retail?
3) How much did it cost you?
 Quantity per wholesale
4) In what quantity? By the dozen?
purchase (e.g. 50 kilos, 1
Sack? Pieces?
dozen, 25 pieces)
 Item cost or the unit cost of
the product (wholesale
cost/quantity: Calculation can be done at the bank.
e.g. P120/24 = PHP5

 Sale price per unit 5) What is your selling price for this item?

3) After repeating this process for each of the 5-6 main products sold, divide the total
sum of all the item costs by the total sum of their sale prices. This figure will give you
a sales multiplier that can be multiplied to the estimated daily, weekly, and/or monthly
sales figure, depending on the timing of the procurement of goods, to arrive at the
estimated cost of goods sold.

Worksheet 2. Cost of Goods Sold and Sales Multiplier

SALES
ITEM SALE
WHOLESAL QUANTIT MULTIPLIER
PRODUCT COST PRICE
E COST (A) Y (B) (TOTAL F/
(A/B=C) (E)
TOTAL G)
Sardines 20 1 item 20 22
Rice 800 50 kilo 16 17
sack
Shampoo 36 12 3 3.50
Beer 264 12 22 25
Soft drinks 120 24 5 7
66 74.5 0.89

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Using the sales multiplier to arrive at estimated cost of goods sold

Use the sales multiplier to determine the estimated cost of goods sold (purchases) by
multiplying the sales figure, depending on the timing of goods procurement, by the sales
multiplier. This will give you the estimated cost of goods sold (purchases) for daily, weekly,
and/or monthly timeframe. If goods are bought daily, multiply the sales multiplier (.89) by the
mean daily sales. If the goods are bought weekly and/or monthly, multiply .89 by the weekly
and/or monthly sales.

If goods are bought daily: If goods are bought weekly:

Daily mean sales 633 Income from sales 3,800

Sales Multiplier 0.89 Sales Multiplier 0.89
Cost of Goods sold 563 Cost of Goods sold 3,382

2. Worksheet for Manufacturing and Services

Worksheet #1. Sales and Purchase

If the respondent is engaged in food processing, manufacturing, or services start by asking

the same questions for sales in worksheet for retail:

1) How many days in a week are you open for business? (This question will help the
account officer later in the cashflow analysis in determining the applicant’s daily and
weekly sales.)

2) What are your highest sales on a good business day? How many days in a week do
you earn this amount? Can you tell me what days are these (Enter response in
Worksheet 1).

3) What about on a slow business day, what are your lowest sales? How many days in a
week do you earn this amount? Can you tell me what days are these? (Follow same
instructions in Q2.)

4) And what about on an average business day, what are your average sales? How
many days in a week do you earn this amount? What days are these? (Follow same
instructions in Q2.)

To get the average daily sales, add the daily figures and multiply this sum by the number of
days the business is open within the week. To get the weekly sales add the daily figures and
multiply by 4 to get the monthly sales.

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Raw Materials/Purchases

Normally, carinderia owners and food processors have a daily budget for raw materials and
purchases. Budget range would depend on the business cycle. A carinderia owner, for
example, would allocate more for raw material expenses on days when she expects her sales
to be high, and vice-versa. On the other hand, manufacturers and service providers such as
furniture-makers, tailors, bag-weavers, welders, beauty parlors, etc. may have a weekly or
monthly budget for raw materials.

The last column provides a space to note the daily/weekly/monthly purchases on a high,
average and low bases. You may continue to ask the respondent:

5) How much do you spend daily/weekly/monthly (depending on the business) on your

raw materials?

In the raw material expense column, note down the figures for each day depending on the
daily sales indicated. For example, if sales are high on a Monday, the daily raw material
expense should correspond to the highest daily sales and if sales are low, the raw material
expense should also be low.

To get the average raw material expense, add the daily figures and divide the sum by the
number of days the business is open within the week. To get the weekly raw material
expense, add the daily figures and multiply by 4 to get the monthly figure. See sample
worksheet below:

Worksheet 1. Sales and Purchase

Note estimated Note daily/
Daily Raw daily sales here: weekly raw
DAY
Daily Sales Material material expense
Expense here:

Monday 3,500 2,000 Highest: 3,500 Highest: 2,000

Tuesday 3,000 1,800 Lowest: 2,500 Lowest: 1,800
Wednesday 2,500 1,800 Average: 3,000 Average: 1,800
Thursday 2,500 1,800
Friday 3,000 1,800
Saturday
Sunday
Weekly Sales
(A) 14,500 9,200
To get monthly
figure: Multiply 58,000 36,800
(A) by 4 weeks
(Ax 4)

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Worksheet #2. Raw Materials

Worksheet #2 allows the account officer to get the breakdown of the respondent’s raw
material expense. In some cases, business owners are better able to compute their raw
material expenses by going through each item they buy regularly. This worksheet will also
allow the account officer to validate the respondent's earlier estimation. See sample
worksheet below:

Worksheet 2. Raw Material

Amount
Raw Materials Cost(P)
Purchased
Pork 100/kilo 500
Beef 110/kilo 330
Fish 75/kilo 150
Chicken 70/kilo 210
Vegetables Varied 350
Oil 40/kilo 80
Spices/Others varied 160
Rice 18.5/kilo 220

Total 2,000

After a while, having gone through many credit investigation of each type of business,
you will be able to develop good information on the range of mark-ups per type of
enterprise and will not need to continue a detailed analysis for each and every
business.

For instance, we know from numerous interviews with sari-sari store operators that their
mark-ups typically range between 10% and 20%; when a store is located where there are
competitors, mark-up is usually around 10%-15%; when there is hardly any competitor, mark-
up may go up to 20%.

Cashflow Analysis Form (Income and Expense)

Once you have finished working on the worksheet, you are now ready to write down
the sales income and raw materials/purchases/cost of good sold for each timeframe in
the CI form and fill up the rest of the income and expense section.

The cashflow section is designed to help the account officer prepare and analyze the daily,
weekly, and monthly income and expense of the applicant and determine the appropriate
amount of loan that can be reasonable paid out of the cash generated by the household and
the business. It also allows the account officer to define the specific terms of repayment that
are suited to the applicant’s repayment capacity.

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The income and expense table in the CI form is divided into sections showing the business
cash position, the household cash position, and the combined household and cash position.
Rows refer to the income and expenses of both business and household.

It is also divided into 3 timeframes – daily, weekly, and monthly to allow the account officer to
more accurately present the timing of the cash receipts and expenses. The columns refer to
the timeframes where either cash is received or spent.

The Monthly Column is the summary of incomes and expenses of the household over a
period of 30 days or one month and should be filled-up at all times regardless of the term of
repayment. Thus, the income and expense table will always have at least two columns filled
up, the monthly column being one of the two.

Note that the terms income and cash are interchangeably used and should be taken to mean
as cash and income.

BUSINESS INCOME AND EXPENSE

Business
Amount
Income from Sales Daily Weekly Monthly
Business 1
Business 2
Total Business Income
Expenses
Raw Materials/Purchases
Business 1
Business 2
Labor
Rent
Utilities
Transportation
Fuel
Loan Payments
Others
Total Business Expenses
Net Business Income

 Income from Sales: From the cashflow worksheet, carry over the income from sales
for each business activity of the applicant on a daily, weekly and monthly bases.

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Business Expenses:

 Raw materials: From the cashflow worksheet, carry over the expenses for raw material
or goods purchased for each business activity on a daily, weekly, and monthly bases.

 Labor: Refers to the amount paid in wages/salaries for business employees, helpers and
other workers involved in the business, including the owner, whether part-time or full-time.

 Rent: The amount paid in rent for the premises from which the business operates. If the
business operates from the owner's residence, leave blank.

 Utilities: Expenses on utility services such as light, water, and telephone of the business.
This is generally a monthly expense. In cases where the place of residence and the place
of business is the same and where the business and household share the utilities, unless
the business uses a remarkable share of the consumption, the account officer may simply
note this figure on the household expenses.

 Transportation: Refers to expenses incurred in the delivery of raw materials or goods

purchased to and from the source to the place of business or the ultimate consumer.

 Fuel: Refers to gasoline, LPG, firewood, charcoal, and/or other sources of fuel that is
used for the production of goods by the business. This expense is common to
restaurants, eateries, food processors, and public utility vehicle owners.

 Loan Payments: Refers to borrowings or loan payments that directly affect the business.
The account officer should be able to name the creditors and the amount of loan payment
and the frequency of payment for each of the creditors identified.

 Others: Refers to business expenses on other items not indicated above.

 Total (Business) Expenses: The total amount of expenses on raw materials, labor, rent,
utilities, transportation, fuel, loan payments and other business expenses.

 Net Business Income: This is the amount remaining when Business Expenses are
subtracted from Business Income.

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HOUSEHOLD INCOME AND EXPENSE

This section refers strictly to the cash sources and uses of the household. To be considered
a member of the borrower’s household, that individual must be living with the borrower and
must be contributing on a regular basis to the upkeep of the household.

Household
Regular Household Income
Salaries
Pension
Other Income
Total Household Income
Expenses
Food
Education
Utilities
Housing/Rent
Transportation
Medical
Insurance
Loan Payments
Others
Total Household Expenses
Net Household Income

TOTAL NET INCOME

 Regular Household Income: Should include all regular sources of cash by the
household such as salaries, pensions, monthly remittances, and other incomes that are
generated on a regular basis. Do not include any cash source that is only intermittently
received by the household.

 Salaries: Refers to collective amounts of income earned from permanent employment by

household members. It should not include fees for profession practiced or services
rendered. The amount to be put in should refer only to the net cash take-home-pay for
regular employment. Incomes derived from non-regular work or from intermittent and
part-time work should be placed under Other Income.

 Pension: Refers to income received by a family member(s) who is retired from work.

 Other Income: Refers to all other incomes derived outside of the regular employment
income. It includes income from other regular sources such as rent income, remittances
from overseas family members on a monthly basis.

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Household Expenses

 Food: Refers to the amount spent on purchasing food items. This row should list daily,
weekly, and monthly purchases. Multiply daily food purchases by 7 days and if there are
separate weekly purchases, this figure should be added to the weekly purchases.

 Education: Refers to the amount paid for schooling during the month, including school
fees, uniforms and other school clothing, books, other fees, and transportation. Note that
some school fees are paid monthly or four times per school year. In either case, use the
total amount paid per year for all school fees and school clothing and divide by 12 to
arrive at the average amount paid per month for these items. Multiply by 30 days the daily
costs of the students’ daily meal allowance and/or transportation and add this figure to the
monthly education expense.

 Utilities: Refers to the amount paid from the household income for utility services such as
light, water, and telephone. This is generally a monthly expense. (See Business Utilities)

 Housing/Rent: Refers to the amount paid month for rent or housing amortization where
the applicant resides. This is generally a monthly expense.

 Transportation: Refers to the amount paid for transportation for family members
(excluding children attending school) during the month (e.g. gas, taxi fare, bus fare). This
is generally a daily expense item.

 Medical: Refers to the amount allocated for visits to the doctor or dentist, surgery,
medicine purchases, health care premiums, among others.

 Insurance: Refers to the amount allocated for life and accidental insurances, such as
SSS, Pag-Ibig, GSIS, etc.

 Loan Payments: Refers to other loan payments that are made monthly by the household
such as salary loans, mortgage payments, supplier credit, payments to 5-6ers, etc.

 Other (Household) Expenses:Refers to additional household expenses paid but not

included in the above categories. They include home repairs, recreation (parties,
celebrations, excursions), clothing, household emergencies, etc.

 Total Household Expenses: Refers to the total amount of all household expenses on
food, education, utilities, housing/rent/transportation, health, insurance, loan payments
and other household expenses.

 Net Household Income: This is the amount remaining when Household Expenses
are subtracted from Household Income.

 Total Income: In the household section, total salaries, pension and other household

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income. In the business section, total all income from sales.

 TOTAL NET INCOME: The sum of Net Business Income and Net Household Income on
daily, weekly and monthly bases. For the purpose of assessing the repayment capacity of
the applicant for the 3 timeframes, the Net Household Income is added to the Net
Business Income to reflect the Total Net Income for each timeframe.

ADJUSTED DEBT CAPACITY

This section determines the capacity of the applicant to repay the loan based on his/her
net income. Debt Capacity is an end-assessment of how much debt a person or
business can manage and should be limited to the borrower's ability to pay his/her dues
on time without weakening the business or defaulting on his/her payment.

DAILY WEEKLY MONTHLY

Equivalent of Daily Net Income

Equivalent of Weekly Net Income

Equivalent of Monthly Net Income

Estimated Amount Available for Debt Servicing

Adjusted Repayment Capacity Rate: x __%

Maximum Loan Entitlement for __ months

Loan Payment – This Loan

 Equivalent of Daily Net Income: If the daily total net income is negative, this figure
is multiplied by the number of days the business operates within the week or month and
carried over to the weekly or monthly column. The equivalent of daily net income is
deducted from the weekly or monthly total net income.

 Equivalent of Weekly Net Income: If the weekly total net income is negative and the
total daily net income is positive, the daily equivalent of weekly net income is obtained by
dividing the number of days the business operates within the week by the negative weekly
total net income. This figure is carried back to the daily column to be deducted from the
daily total net income.

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Equivalent of Monthly Net Income: If the monthly total net income is negative, and the
weekly net income is positive, the weekly equivalent of the monthly total net income is
obtained by dividing the total monthly net income by 4 weeks. This figure is deducted from
the positive weekly net income.

If both the weekly net income and total monthly income are negative, and daily net
income is positive, these negative figures are divided by the number of days the
business is open within the week and within the month respectively. Their daily
equivalents are deducted from the daily net income.

 Estimated Amount Available for Debt Servicing: Difference between the total net
income and the daily, weekly, and/or monthly equivalent of the total net income.

 Adjusted Repayment Capacity Rate (ARCR): Percentage of total capacity to be used to

service loan. For first loan, monthly repayment is recommended to be no more than 25-
30% of the estimated amount available for debt servicing.

 Adjusted Repayment Capacity (ARC): Amount the client can afford to pay daily, weekly,
or monthly. This is the product of estimated amount available for debt servicing multiplied
by the adjusted debt capacity rate.

 Maximum Loan Entitlement:

P= ARC x n

(1+c)(1+rt)

where:

P = maximum loan entitlement (or loan principal)

ARC = adjusted debt capacity rate
n = number of collection days
c = compensating deposit, __% of amortization
r = interest rate per month
t = term in months

Account officer should not recommend a loan over the maximum loan entitlement and
should round off the amount to the nearest hundred within ABC loan sizes. If the
maximum loan entitlement is greater than the amount applied for, the account officer
should recommend the amount the applicant wants to borrow.

 Loan Payment: This is based on the loan amortization schedule of ABC loan.

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D. RESULT OF INTERVIEW WITH REFERENCES

In this section, the account officer will make a character/credit investigation about the
applicant and interview at least 4 people who know the applicant’s character and credit
history. They must include the two co-makers, and two other people who may either be
suppliers and/or creditors, neighbors, and/or a barangay official or purok leader. If the
applicant is a public market vendor, public market personnel or collector may be a good
source of information.

It is important for the account officer to be sensitive and observant when conducting the
interview. The purpose of interviewing character references is to know more about the
applicant’s character and credit conduct without prejudice to the relationship between the
references and the applicant. If answers may be vague or evasive, probe carefully without
appearing aggressive.

The account officer should introduce himself/herself properly before questioning the
respondent. If possible, show an identification card that will prove that he/she is from the
bank. State the purpose of the interview and remember to thank the respondent for his/her
participation.

 Name of Applicant: The subject of credit/character investigation.

1. Interview with Suppliers:

SUPPLIER/CREDITOR-1 SUPPLIER/CREDITOR-2
NAME
ADDRESS
DATE OF INTERVIEW:
How long have you known applicant?

How long has the applicant been buying/

borrowing/ receiving goods on consignment
from you?

Is he/she a good borrower? Explain

Have you experienced any difficulty in

collecting from him/her? Explain.

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 Name and Address of Suppliers/Creditors: Self-explanatory

 Date of Interview: Self-explanatory

 How long have you known the client? Number of years or months the respondent has
known the applicant.

 How long have the applicant been purchasing/borrowing/receiving goods on

consignment from you? Number of years/months the applicant have been buying
goods on installment/borrowing money from the supplier/creditor.

 Is he/she a good borrower? Explain. The account officer should probe the
supplier/creditor’s answer. Ask why is the applicant is a good/bad borrower. Does the
applicant pay on time? Does he/she ignore collection letters? Does he/she fulfill his/her
promises of paying on the agreed date?

 Have you experienced any difficulty collecting from the applicant? Explain. If the
respondent answered “yes”, why did he/she have any problem collecting payments from
the applicant. State the reason(s) or let the supplier/creditor cite examples.

2. Interview with Barangay Official

Urban barangays may be bigger and more populated than rural barangays. In this case,
barangay officials may no longer know their constituents in the way that rural barangay
officials do. If the bank is located in a bigger or urban community, the purok (zone) leader
may be a more appropriate reference.

NAME AND ADDRESS OF

BARANGAY/PUROK OFFICIAL:

DATE OF INTERVIEW:
1. Do you know the applicant personally? For how long?

2. How long has the applicant lived in the community?

3. Has the applicant been involved in any legal case or dispute in your barangay? If yes, explain.

4. Do you have any other information about the applicant that may affect his/her loan application? Explain.

 Name and Address of Barangay/Purok Official: Self-explanatory

 Date of Interview: Self-explanatory

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Do you know the applicant personally? For how long? Number of years or months the
respondent has known the applicant.

 How long has the applicant lived in the community? Verify with the barangay/purok
official the applicant’s answer in the application form.

 Has the client been involved in a legal case or dispute? If yes, explain. The barangay
captain/purok leader may be the best person to answer this question as legal cases in the
community level are first settled in the barangay office. Nevertheless, co-makers and
neighbors may also have some knowledge about a possible involvement by the applicant
in a legal case or dispute.

 Do you have any other information about the applicant that may affect his/her loan
application? Open-ended question. The account officer should record verbatim whatever
the respondent has to say.

Is he/she known to borrow loans? The bank needs to know if the applicant has multiple
borrowings and/or the frequency of borrowing, as this may jeopardize the applicant’s
ability to pay his/her new loan.

If the respondent says “yes”, ask whom/where does she usually borrow from. If the
applicant has a regular source of loan where he/she depends on, the bank should know
about this to determine if this will contribute to payment defaults and past due loan of the
applicant.

3. Interview with Public market Personnel

NAME OF PUBLIC MARKET PERSONNEL:

DATE OF INTERVIEW:
1. Do you know the applicant personally?

2. How long has the applicant been selling in the public market?

3. Is the applicant up-to-date with his/her market obligations? Explain.

4. Do you have any other information about the applicant that may affect his/her loan application? Explain.

 Name and Address of Barangay/Purok Official: Self-explanatory

 Date of Interview: Self-explanatory

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 Do you know the applicant personally? If yes, for how long? Write the respondent’s
answer verbatim.

 How long has the applicant been selling in the public market? Number of years.
Write the respondent’s answer verbatim.

 Is the applicant up-to-date with his/her market obligations? Explain. These

questions should give the account officer a clear idea of the applicant’s character and
credit reputation in the business community. However, these questions are only starting
points for the account officers to get the most of their credit investigation.

 Do you have any other information about the applicant that may affect his/her loan
application? Open-ended question. The account officer should record verbatim whatever
the respondent has to say.

4. Interview with Business/Residential Neighbors

NAME, OCCUPATION, AND ADDRESS OF

NEIGHBOR:
 Business Neighbor
 Residential Neighbor
 Business/Residential Neighbor

DATE OF INTERVIEW:
1.How long have you known applicant?

2.Is the applicant well regarded by others? Explain.

3.Is the applicant a good borrower? Explain.

4.Would you guarantee his/her loan? Explain.

 Name, Occupation and Address of Neighbor: Self-explanatory.

 Tick the box(es) if business neighbor, residential neighbor or both.

 Date of Interview: Self-explanatory.

 How long have you known the applicant? Number of years or months the respondent
has known the applicant.

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 Is the applicant well regarded by others? Explain. What is the applicant’s reputation
in the community? Has the applicant been involved in any legal case or dispute within the
community? Probe the neighbor and allow him/her to elaborate. Record his/her answer
verbatim.

 Is the applicant a good borrower? Explain. The account officer should probe the
supplier/creditor’s answer. Ask why is the applicant is a good/bad borrower. Have they
experienced being contacted on a regular basis, by a loan collector to ask the
whereabouts of the applicants? Is the applicant known to borrow money indiscriminately?

 Would you guarantee his/her loan? Explain. Let the neighbor explain his her answer.
Write his/her answer verbatim.

E. CO-MAKER’S PROFILE

PERSONAL DATA

 Name: Full legal name of person acting as co-maker for the loan.

 Nickname: Any other name by which co-maker is known.

 ID Number: Identification number of co-maker, if any.

 Type of ID: Can be any of the following: passport, drivers license, voter’s ID, taxpayer’s
ID, or business permit.

 Date of Birth: Date of co-maker’s birth.

 Sex: Indicate whether co-maker is male or female.

 Home Address: Current home address of co-maker.

 Home Ownership: Indicate whether house is owned, rented, a housing plan, or

shared with another family.

 Telephone Number (if any): Home telephone number of co-maker or any number where
the co-maker can easily be reached.

 No. of Years in this Address: Number of years the co-maker has lived in this address.

 No. of years in the Community: Number of years the co-maker has lived in the
city/town.
 Number of Dependents: The number of family and other household members who
are financially dependent on the applicant.
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 Civil Status: Indicate whether the applicant is single, married, etc.

 Name of Spouse: Name of co-maker’s husband/wife/common-law husband/common-law

wife.

 Occupation of Spouse: If spouse is working outside the home, in what capacity is

spouse employed

 Regular Monthly Income: How much does the spouse earn monthly?

 Business/Employment Address of Spouse: If spouse is working outside the home,

address of business or workplace.

EMPLOYMENT AND ECONOMIC ACTIVITY

(Multiple response: the co-maker may be a regular employee, while operating his/her own
business.)

If employed:

 Name of Superior/Employer: Name of co-maker’s employer or immediate superior.

 Name of Company: Name of company/office where co-maker is currently employed. Or

name of department/agency if a government employee.

 Company Address: Current address of co-maker’s employment.

 Telephone Number: Telephone number of co-maker’s employment.

 Nature of Business: What is the main business activity of the company?

 Position in the Company: In what capacity is co-maker employed.

 No. of Years with the Company: How long has the co-maker been employed with the
said company/government office.

 Regular Monthly Salary: Amount of co-maker’s monthly salary.

 Other Sources of Income (if any): Other sources of income other than co-maker’s
regular employment.

If self-employed:

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 Business Name: Registered business name of the co-maker.

 Business Address: If different from co-maker’s residence, state business address.

 Nature of Business: What is the main business activity of the co-maker?

 Telephone Number: Telephone number, if any, of the co-maker’s business.

 Name of Business Partner (if any): If co-maker has a business partner, write down
his/her name.

 Share in the Business: If business is a partnership, how much is the co-maker’s capital
and profit share in the business?

 No. of Years in the Business: How many years has the business been in operation.

 Regular Monthly Sales: The monthly amount earned for goods and services sold.

 Signature of Co-maker: After completion of the co-maker’s profile, the co-maker

signs on this line to affirm the correctness of the above information.

 Date: Date the co-maker’s profile is completed.

INTERVIEW WITH CO-MAKER

1. How long have you known the applicant? Number of years or months the respondent
has known the applicant.

2. Are you a relative of the applicant? State the relationship of the respondent to the
applicant (e.g., brother/mother/aunt, friend, etc.).
3.

4. Has the applicant been involved in a legal case or dispute? If yes, what is it? Co-
makers and neighbors may also have some knowledge about a possible involvement by
the applicant in a legal case or dispute.

5. How would you assess the character of the applicant? Explain. Open-ended
question. The account officer should record verbatim whatever the respondent has to
say.
6. Do you know if he/she has vices? Explain. Does the applicant smoke, drink, or
gamble. What about his/her spouse? If the applicant has possesses any of these
vices, you may need to allocate a portion of his/her income to these expenses. The
account officer should also gauge from the co-maker the seriousness of the applicant’s
vices, if any.

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7. Is he/she known to borrow loans? Explain. The bank needs to know if the applicant
has multiple borrowings and/or the frequency of borrowing, as this may jeopardize the
applicant’s ability to pay his/her new loan.

If the respondent says “yes”, ask whom/where does she usually borrow from. If the
applicant has a regular source of loan where he/she depends on, the bank should know
about this to determine if this will contribute to payment defaults and past due loan of
the applicant.

8. Is he/she known to be a reliable/unreliable borrower? Explain. Write the

respondent’s answer verbatim.

9. Would you be willing to lend him/her money out of your own pocket? Explain. Write
the respondent’s answer verbatim. Why would the co-maker lend money to the
applicant out of his/her own pocket? Has the applicant borrow from him/her before
without any difficulty collecting payment?

10. Have you ever been a co-maker? If yes, for whom and which credit institution?
For the same applicant or for another borrower in the past? Get the name of the bank
or lending institution? Also find out if the co-maker has any outstanding loan or is
presently co-making another loan. If the co-maker has outstanding loan or loan history
with RB XYZ as borrower or co-maker, check bank records.

11. Would you be willing to guarantee the applicant’s loan? Explain. Why would the co-
maker be willing to guarantee for the applicant’s loan? Has the applicant borrowed from
him/her in the past? What was the co-maker’s experience? Record co-maker’s answer
verbatim.

12. Does your spouse know you are co-making for this loan? How does the spouse feel
about the co-maker’s decision to co-make for the applicant’s loan. Is the spouse
supportive or not?

13. Would you be willing to pay for her/his missed payments. Explain. Gauge from the
co-maker’s response whether he/she fully understands his/her role as a co-maker.
Record co-maker’s response verbatim.

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F. REPEAT LOAN CREDIT INVESTIGATION FORM

The repeat loan credit investigation process is shorter compared to the first credit
investigation. Only the most important information about the client’s cashflow is updated to
be able to determine the appropriate loan terms and condition on his/her next loan. The
sections that need updating are: business season; credit records, inventory of assets,
balance sheet, income and expense and debt repayment capacity.

 Name of Applicant: Full legal name of applicant.

 Type of Business: The nature of business the applicant is engaged in: e.g., sari-sari
store, market vendor, carinderia/eatery/bakery, transport, fishing, food processing,
“viajero” or buy and sell, crafts and light manufacturing, agriculture non-crop, or personal
services.

BUSINESS SEASONS

Record the trends in sales for each business activity for every month of the year, indicating
the high, average and low seasons of the business in terms of sales. Enter H, A or L as
appropriate in the relevant columns. Leave blank if there is no secondary business activity.

CREDIT RECORDS

Note if there is any need for updating the client’s credit history, including any existing loan, the
due date, and the frequency and amount of installment payments.

INVENTORY OF ASSETS

This section has to be regularly updated by the account officer to determine if the repeat
client has new acquisition or has disposed of any asset during the life of the loan.

 Quantity: This refers to the number of each asset owned by the applicant.

 Description: This refers to all business and household assets, including fixed and
movable assets such as business equipment, vehicle, appliances, etc.

 Appraised Value: This is the present market value of the assets mentioned.

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 Loan/Account Balance: Amount, if any, still owing on any of the assets, i.e.,
installment payables.

 Age: Number of years since the asset has been bought.

 Condition: This is the present condition (e.g. very good/good/poor) of the assets
mentioned.

 Total Appraised Value: The total market value of all assets.

BUSINESS ASSETS, LIABILITIES AND NETWORTH

In the repeat CI form, there is an additional column for this table, Previous Column, where
the account officer shall carry over the previous figures for each balance sheet item from the
last credit investigation. This exercise will make it easier for the account officer to determine
the financial and business growth, or loss, of his/her client, as well as to validate excess
estimation by the client during the succeeding credit investigations.

A. Business Assets

 Cash and/or Bank: This refers to the amount of cash the applicant has available on
hand and/or in the bank for immediate use. If there is no separate account for the
business, list the balance from any account(s) of the applicant.
 Accounts Receivable: Amount owed to the business by customers but not yet collected.

 Raw Materials: Value of material not yet in production. These include such things as
wood for furniture-making; cloth and supplies for dressmaking; and cement, gravel, sand
for block making, etc. If involved in merchandise and sales, the value of all goods in stock.

 Goods in Process: Value of goods in production but not yet finished. These include
such things as unfinished furniture, dress, etc.

 Finished Goods: Value of goods ready for sale. This also includes stock in a vendor's
stall.

 Other Assets: Any item of value not included in the above categories.

 Total Business Assets: This is the sum of the applicant’s cash and bank, accounts
receivables, raw materials, goods in process, finished goods, and other business assets.

B. Business Liabilities and Networth

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 Loan Payables: Amount owed by the applicant in relation to the business. These include
short-term loans, long-term loans and amounts due to suppliers/creditors.

 Other Payables: Any other amount owed by the applicant and other liabilities such as
taxes, insurance/health premiums, small lay-away items, etc.

 Total Business Liabilities: The total of all monies owed by the applicant due to the
business.

 Total Business Networth: Equity and accumulated profits made by the applicant.
This is the difference between Total Assets and Total Liabilities.

 Total Business Liabilities and Networth: Total Liabilities plus Networth – this should
always be equal with the total business assets.

CASHLOW ANALYSIS FOR (Income and Expense)

Refer to the same section on Credit Investigation Form.

 Amount Change: This column, in the income and expense, and balance sheet tables,
represent an increase or decrease in the amount of income and expenses of the business
(daily, weekly, and monthly) and household, as well as the his/her assets, liabilities and
networth. This figure may be positive or negative, indicating growth or loss on the
finances of the client. To arrive at this figure, get the difference between the previous
amount and the current amount of all the items in question. The previous amount can be
taken from the first credit investigation form of the repeat client. Thus:

Amount Change = Current Amount – Previous Amount

ACCOUNT OFFICER’S OBSERVATIONS/CONCLUSION

The account officer should indicate in this section any important observation, whether positive
or negative, which may have an impact on the credit approval. He/she should also include
the loan amount recommended based on the result of his/her credit investigation, cash flow
analysis, and debt repayment capacity analysis.

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CERTIFICATION

The account officer must certify that he/she has correctly completed the credit investigation
form based on a thoroughly conducted credit investigation and cashflow analysis. After a
careful review, the supervisor notes his/her approval by signing at the left-bottom section of
the form. If there are mistakes and missing information that need verification, the supervisor
must not sign and endorse the application to the credit committee.

 Name/Signature of Account Officer: Name and signature of the account officer in

charge of the applicant’s loan application process.

 Date: Date of completion of the credit investigation process.

 Signature of Supervisor: Affixed after the supervisor is satisfied that the credit
investigation is properly completed.

G. REPEAT LOAN APPLICATION FORM

The account officer should give this form to the client one week before the loan has matured.

 Account Officer: Name of account officer in-charge of the application.

 Client Identification Number: Number assigned to client on the first application.

 Loan Number: Maybe a combination of numbers tracing type of loan product, client ID
number, and the nth number of loan.

PERSONAL DATA

 Name: Full legal name of applicant.

 Home Address: Current residential address of applicant.

 Home Telephone: If any, home telephone number or any other number where the
applicant can easily be reached.

 Business Name and Address: Indicate if the business has a duly registered business
name, as well as his/her business address. If applicant operates from his/her residence,
write the address of the residence or indicate: “same as residence”.

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 Business Telephone: If any, telephone number that is being used by the business.
Indicate if this number is the same as the residential telephone.

 If Employed, Employment Address: Name and location of company/office, or

department/agency if a government employee.

 Office Telephone: Self-explanatory.

PURPOSE OF LOAN

 How much do you want to borrow? The applicant should indicate the amount he/she
wants to borrow.

 For how long? Indicate if applicant would like to pay his/her loan within one, two, or
three months.

 Purpose of Loan? The business activity for which the loan is going to be used.

 How often can you afford to pay? How frequent can the applicant pay his/her payment
dues: daily, weekly, or monthly?.

 How much can you afford to pay? How much can the applicant pay if he/she chose to
pay weekly, daily, or monthly.

CREDIT HISTORY

This section outlines the loan history of the repeat client with RB XYZ.

 Date: The date of loan release.

 Loan Amount: The amount of loan released.

 Frequency/Amount of Payment: The amount of loan repayments and the schedule of

payment (daily, weekly, or monthly).

 No. of On-time Payments: The number of on-time payments out of the total number of
scheduled payments of the repeat client.

 No. of Late Payments: The number of late payments of the repeat client between 1-7
days; 8-14 days; 15-30 Days: and over 30 days.

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AUTHORIZATION

The applicant must read this section thoroughly and the account officer must make sure that
the authorization is explained and well understood by the applicant and the spouse.

 Signature of Applicant/Spouse: After the application form is completed and the

authorization is read, the applicant and his/her spouse affix their signatures.

 Date/Place: Date when and place where the form is completed.

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