CHAPTER II RELATED SYSTEMS PSBank Flexi Personal Loan the PSBank Flexi personal loan is a loan offered by PSBank

k to anyone who is qualified. The loan term is long, between 24 to 36 months, with a minimum loan amount of Php 20,000 and a maximum of Php 250,000. With the this long term loan, interest rate could be a burden to the borrower, since it doesnt offer short term, small amount loans, which is commonly needed by most people. Although the loan could be availed online, this loan system still requires manual intervention, such as sending copies of valid identification and credit information. It is a second generation online lending system, where application and pre approval is online, but final approval may be done in person. Application Process: 1. Register Online: Includes Personal Information and Contact Information, Loan details, Employment Information, and Credit Card Information.

2. After online application, verification regarding approval will be sent to borrower via SMS and e-mail. 3. If approved, supporting documents such as photocopy of valid identification card, original copy of latest credit card billing statement, and BIR forms, must be submitted to PS Bank branch. 4. After supporting documents have been verified and approved, final approval for the loan will be given. Qualifications: Citizenship Residence Age Source of Income Work Tenure : Filipino : Philippines : At least 22 years old to 54 years old upon line approval : Employed or self-employed

: At least 2 years permanent work status with 1 year tenure in current employer if employed or 3 years profitable in the same business if self-employed Monthly Income : At least PhP15,000 gross monthly income if employed : At least PhP30,000 net monthly income if self-employed Others : Preferably an active credit card holder : With residential landline or mobile number, business landline and email address

Product Features: Credit Facility Loan Amount Loan Term Minimum Monthly Repayment Revolving Credit Line and Fixed Term Loan Minimum of PhP20,000; Maximum of PhP250,000 24 or 36 months 5% of the Total Amount Due of Revolving Loan availments or Interest Due or PhP500, whichever is higher + monthly amortization of the Installment Loan Availments. 2.5% interest rate for the Revolving Loan; 1.75% addon rate for the Fixed Term Loan. -the-counter at any PSBank branch

Interest Rate Form of Payment

nationwide clients who have deposit accounts in these banks activated PSBank accounts -initiated deduction/debit from PSBank deposit account only Accessibility PSBank, Metrobank, Megalink, Expressnet, and BancNet networks nationwide and Maestro-Cirrus ATMs worldwide PSBank ATM -of-Sale (as debit card): Can be used in over 20,000 BancNet, Megalink, and ExpressNet-affiliated stores rsonal Loan Checks Release of ATM Card Turn Around Time Annual Fee ATM Service Fee 5 days PhP1,500 or 1% of the approved credit line whichever is higher. PSBank ATMs: PhP20.00 Metrobank ATMs: PhP22.50 BancNet, Megalink, ExpressNet ATMs: PhP30.00 per withdrawal; PhP1.00 per balance inquiry BDO & Cirrus ATMs: US$3.50 + PhP20.00 per withdrawal; US$1.00 per balance inquiry Credit Line Validity Renewable yearly Maximum Withdrawal per day PhP50,000 in all PSBank and Metrobank branches Checkbook For approved credit lines PhP50,000 and up, clients get one FREE checkbook upon request. For approved credit lines less than PhP50,000, clients can request for a checkbook at a standard cost of PhP165.00. You are advised of your account details via: Paper Statement of Account (delivered to your preferred mailing address) PSBank Remote Banking - Statement of Account in

Statement of Account

Synthesis: From the PSBank Flexi Personal Loan, several features could be adapted into our Online Lending System. Features as verification of borrowers employment status and information, and bank account verification would both be implemented into our Online Lending System. Payment method of over the counter will also be utilized. Compared to the PSBank Flexi Loan, we will allow low amount loans as short term loans, subject to the same requirements (currently employed and verified active ATM). Our lending system will be more flexible than the PSBank Flexi loan in such a way that it could provide loans to a broader class of people.

Standard Chartered EZ Loan The Standard Chartered EZ Loan personal loan offers convenience to its client through its online application, and optional pick-up of supporting documents. The hassle of personally sending documents to the bank is eliminated via its pick up service. A person may avail of a loan, on condition that all requirements have been bet, without even having to personally go to the bank for approval. However, it is only offered as a long term loan, up to 48 months, with a minimum amount of Php 30,000. On top of the 1.28% interest rate, a handling fee of 4% of the total loan is automatically added into borrowers payable. Thought it offers a large amount to be loaned, Filipinos could better make use of short term, low interest, and low amount loans. Application Process: 1. Register Online: Includes Personal Information and Contact Information, Loan details, Employment Information, and Credit Card Information.

2. After the borrower has completely filled out the registration form online, SMS confirmation or e-mail will be sent, and an accredited agent will contact the borrower for pre-approval. 3. Supporting documents such as valid ID, billing address and billing statement, and credit card information, must be forwarded by the borrower to Standard Chartered bank for review, or may be picked up by authorized agent. 4. Once pre-approved and the supporting documents have been verified, the borrower will be noticed for the final approval. Loan could then be received by the borrower.

Qualification: Filipino citizen, at least 21 years old but no more than 65 years old upon Personal Loan maturity With home or business address in the Bank's service regions Minimum gross annual income of P290,000 Office landline telephone and either a home landline phone or cellphone Employed in one of the Top 10,000 corporations in the Philippines

Product Features: Standard Chartered Banks EZ Loan is a non-collateral, multi-purpose loan. Low Interest Rates: At interest rates as low as 1.28% per month, pay back P33.63 for every P1,000.00 that you loan.

No collateral, no deposit requirements. Only readily available cash to be used any way one chooses. Personal Loans range from P30,000 up to a maximum of PHP 2 Million - designed to suit every need.

Easy repayment terms: One of the longest loan tenors of up to 48 months. Hassle free processing via our exclusive door to door document pick-up serviceyou can apply within the convenience of your office/home. Plus Personal Loan proceeds can be directly deposited to a designated personal bank account.

Latest payment due date. Provides better management of finances with our Payment Holiday Feature installment payments begin after 30 days.

Synthesis: From the Standard Chartered EZ Loan lending system, it could be realized that this system will not be viable to for people of minimal salary. The minimum amount to be lent is Php 30,000, and such amount might be more than what an ordinary low waged worker would need. Such lending system and amount to be lent is heavy for a low waged employee to repay. Also, it is a requirement that the borrower have a credit card account, a prerequisite that an ordinary employee might not be qualified for. Our Online Lending system will adapt the following features of the Standard Chartered EZ Loan lending system: Offer an online registration and application, subject for verification and approval. Require supporting documents for final approval of loan. No collateral requirements.

Instead of requiring the borrower to have his or her own credit account, our Online Lending System would require that the borrower be employed (to be verified from their employer), and have their ATM account verified to be active through their respective banks online banking system and forwarded to the Online Lending System. Doing so would ensure that the borrower will be able to repay the loan.

Citibank Personal Loan Citibank personal loan is similar to the PSBank Flexi Loan and Standard Chartered EZ Loan. It is also a long term loan, offering up to 48 months of repayment. The minimum amount to be loaned is Php 25,000. It requires manual intervention, the sending of documents, and approval by accredited agent. The registration is online, but the whole application process may require a visit to the bank. Application Process: 1. Register Online: Includes Personal Information and Contact Information, Loan details, Employment Information, and Credit Card Information.

2. After application form has been filled out, an accredited agent will contact the borrower for pre-approval. 3. Once pre-approved, required documents such as valid identification card, latest credit card statements, and Income tax returns must be faxed or sent to Citibank office for review. 4. After validating supporting documents, loan could be received via check or cash pick up, or deposited into borrowers account. Qualifications: Self-Employed / Professionals Credit Cardholder 1 primary ID and your credit card

Salaried Credit Cardholder 1 primary ID and your credit card Last 2 months credit card statements Photocopy of the front side of credit card

Salaried 2 valid IDs Latest 1 month payslip

Self-Employed / Professionals 2 valid IDs

Last 2 months credit Latest audited card statements financial statements

Latest ITR (1700 or Latest ITR (1700 or Latest ITR (1700 or 1701) w/ BIR or bank 1701) w/ BIR or bank 1701) w/ BIR or bank stamp stamp stamp Photocopy of the front side of credit card 2 months bank statements (within the last 4 months)

Product features: Citi Personal Loan loan amounts range from P25,000 to P1,000,000 depending on your monthly income and will be determined prior to the approval of your loan. 12, 18, 24, 30, 36 and 48 monthly payment terms.

The loan-processing fee ranges from 4% of Loan Amount or P2,500 whichever is applicable. Our Citi Personal Loan Officer will confirm this with you prior to the approval of your loan.

No annual fee. Upon submission of your complete loan document requirements, please expect results of your loan application in as fast as 24 hours.

You will receive your loan proceeds in the form of a cheque or cash pick-up. Or, if your loan is approved in a Citibank Savings branch, you can withdraw your loan proceeds over-the-counter.

You may pre-terminate your loan anytime. You will only need to pay the outstanding principal balance plus a minimum closure handling fee of P650.

Synthesis: From the Citibank personal loan lending system, we adapt the online registration feature. Its feature for an option to pick up in cash or check the amount to be borrowed, or to be received via another personal account would also be adapted. For amounts less than Php 5,000, online pre approval could be made just by verifying if the borrowers ATM account from the employer is active. If it is active, further documents would also be required. The citibanks lending system in approving loans withing 24 hours would also be adapted, provided that the borrower complies with all the requirements such as valid Identification, verification of

employment and verification that the ATM account is active. This could all be done without having to visit on site for approval.