CREDIT INVESTIGATION FORM FOR REPEAT LOAN
NAME OF APPLICANT: No. of Past Loans:
I - ANALYSIS OF REPAYMENT BEHAVIOR for the last three loans
(This must be accomplished prior to client interview/investigation. Fill out the Client Classification column IF the Client Status Report is attached. )
No. / Loan Amount / # of Inst. / W / Bi-Mo. / Mo. / 60/40 / On Time Payment / Maximum No. of days delayed / Classification
# inst. / % / 1-3 / 4-6 / 7-13 / 14-29 / 30+
o / o / o / o
o / o / o / o
o / o / o / o
Maximum loan amount entitled for next loan P______(maximum increase of 30 %)
Amount requested by client P______
State causes for any delayed payments of four (4) days and over (last loan only)
Health problems
Death in the family
Marital problems
Problems with sales / Loan diversion
Problem with collection/receivables
Multiple borrowing
Other ______
II. RESULTS OF MONITORING
Business Condition
Increase in Business AssetsIncrease in Merchandise Inventory
Same business location
Change to a better business location
Increase in number of employees
Increase in number of days or hours of operation/
Expanded trade area or distribution network / Decrease in Business Assets
Decrease in Merchandise Inventory
Change to a lesser attractive business location
Decrease in number of employees
Decrease in number of days or hours of operation/
Reduced trade area or distribution network
Farm Condition (For Micro-Agri Loan)
Increase in production
Increase in prices of crop/livestock
Prices of inputs decreased or remain the same
Farm has good irrigation
Good farm to market road
Good weather condition
Other: ______/ Problems of low productivity
Problems of low prices of crop
Problem of high prices of inputs
Lack of irrigation/Problems with timing of irrigation
Problems with farm to market road
Bad weather condition (draught, flood)
Pest infestation of previous crop cycle
Other: ______
Household Condition
Other household income continue to be the same if not better
No health problems within the family
Household assets remain the same if not better
Same home address
Change to a better residential location
No conflicts in family relationships / Job loss of any household member
Health problems
Decrease in household assets
Death in the family
Change of home address
Marital problems
Court/Barangay cases of any household member
Other
III - SAVINGS BALANCES
(This must be accomplished prior to client interview/investigation)
Type of Account
/ Balances during the last three months / Remarks for decreasing balances onlyIV – BUSINESS DATA
[Update if repeat loan is done six (6) months after the last Cash Flow Analysis]
Sales Frequency / o Daily o Weekly o Semi-monthly o Monthly o Others :
Gross Sales / Low : Average : High :
How often is the business open? / o Mon o Tues o Wed o Thurs o Fri o Sat o Sun
Business Trends / Peak Months :
Slow Months :
Average Months:
Working Capital information:
How often do you buy stocks? / o Daily o Weekly o Semi-monthly o Monthly o Others :
How much do you spend each time?
Where do you usually buy your stocks?
How are stocks purchased? / o Cash o Consignment o Credit : What terms? ______
V - MARKET RISK ANALYSIS
Factors / Description / Potential Problems/Risks
1. Clients
2. Supplies
3. Production/Sales/Services
4. Others
VI - INVENTORY OF BUSINESS ASSETS
[Machinery, Furnitures, Fixtures used for the business)]
Qty. / Description / Approximate Value
VII – MERCHANDISE INVENTORY (List down the five[5] fastest selling/largest items)
Quantity / Description / Estimated Value
Total
VIII - INVENTORY OF PERSONAL ASSETS
[Real Estate and other household & personal assets)]
Qty. / Description / Approximate Value
IX – COMPARATIVE BALANCE SHEET
ASSETS
/ LIABILITIESPrevious Amount / Current Amount / Change / Previous Amount / Current Amount / Change
Cash on hand and in Bank / Loan Payable
Accounts Receivable / Other Payables
Raw Materials
Goods in Process
Finished Goods / Total Liabilities
Total Assets
Other Assets / Total Networth
Total Assets / Total Liabilities and Networth
(See attached Cash Flow Schedules for details on computations)
X – CASH FLOW COMPUTATION(This is to be done if repeat loan does not meet policies on exemptions. Attach new cash flow computation to this CIBI report )
XI- COMPARATIVE CASH FLOW
Previous Loan / Current Loan / Change
Total Business Income
Less : Total Business Expense
Net Business Income
Add : Total Household Income
Less : Total Household Expense
Net Household Income
Maximum Loan Entitlement
XII - CASH FLOW RISK ANALYSIS
Is the amount of the loan smaller than the size of the business? Yes No
Is the amount granted smaller than the amount requested by applicant? Yes No
Is the installment granted smaller than the installment requested by the applicant? Yes No
Is the amount granted less than 50% of the total assets? Yes No
Is the loan amount less than 50% of the expenses? Yes No
XIII - SUGGESTED COURSES OF ACTION
· If delays happened at the end of the loan term, AO must consider:- Decreasing the loan amount
- Repeating the same loan amount
- Suspending additional loans until situation gets under control
· If delays happened at the beginning, business has already recovered. AO can proceed with increase as allowed by the client classification and cash flow. The AO can also request a higher increase as an exception case.
· If repayment behavior deteriorates from one loan to the next, client must be reaching borrowing limit. AO must consider not to grant any increases.
· If repayment behavior rapidly deteriorates from AA to C, the last amount granted was already too high. AO must consider to reduce loan amount or discontinue servicing the client.
· If the delay was caused by health problems, the AO must evaluate if the situation is solved (one time occurrence) or recurring (e.g. dialysis). If problem is recurring, the AO must consider not granting additional loans.
· If payments are consistently late, the problem might not be the size of the loan but the client.
· If client has multiple borrowings (from other lending institutions) but no delayed payments beyond 3 days, the AO must check repayment behavior with other sources to confirm good standing (delay no higher than 1-3 days).
· If client has multiple borrowings and has delays of four days or more, the AO must consider suspending any additional loans until loan with other institution is repaid in full.
· If savings balances are declining, the business or household might be experiencing liquidity problems. The AO must investigate the causes of the decline. If there are no clear justifications, the AO must consider reducing or suspending the loan until the situation gets under control.
· If it’s a repeat loan, the AO will do the cash flow analysis every other loan ONLY if repeat loan amount is the same or within 10% increase, not more than P25,000, loan term is 6 months or less, and the client has not made payments with delay of not more than 3 days. If a borrower does not meet these qualifications, a cash flow analysis will be done for every loan.
XIV. Account Officer’s Findings & Recommendation
(This should be based on the results of the 4 character
indicators analysis as well as cash flow analysis) / Account Officer’s Signature
I hereby certify that all the information stated in the
Credit Investigation Report are true and correct and
that I shall be held responsible for any misrepresentation.
______
Signature over Printed Name
______
Date Report Completed and Submitted to Supervisor
XV. MF Supervisor’s Review Findings
(This should be based on how well the AO has analyzed the
Character and cash flow of the applicant) / MF Supervisor’s Signature
I hereby certify that I have reviewed the information and
analyses contained in this Credit Investigation Report
and that I concur with the findings and recommendations
of the account officer.
______
Signature over Printed Name
______
Date-Review Completed and Submitted to Branch Manager
5
Credit Analysis form for Repeat Loan