SESLA

Shell Employees Savings and Loan Association

serving you since 1955

 Frontlines - 8 359-4145 / 8 359-0213
      8 359-3818
      Accounting - 8 359-4150
      Office Manager - 8 983-1874

Loans

Competitive interest rates on loans.

Loans

  • Consumption Loan
  • Car Loan
  • Home Loan

Car Loan

Lending Guidelines for Car Loan

  1. Eligibility:
    • All qualified members of the association shall be eligible provided that:
      1. He is at least FIVE (5) years in service as regular employee of Shell Companies in the Philippines or Shell Employees Savings and Loan Association.
      2. For retired members, deposits, sources of income and other covenants shall be required to satisfy the loan subject to appropriate credit approval.
      3. He agrees to fulfill all loan requirements and execute all supporting papers and/or documents to the satisfaction of the chattel mortgage.
      4. For married couples, both can apply for a single loan on the condition that both loans are in respect of the same vehicle.
  2. Loan Limits
    1. The association may grant loans not exceeding the amount deposited and/or contributed by the member-borrower plus his twelve (12) months salary or up to seventy percent (70%) of the fair market value of the vehicle acceptable as collateral on first mortgage that he may put up by way of security.
    2. The loan shall not cover incidental expenses, such as documentation fees and others. All these expenses shall be for the borrower’s personal account.
    3. No loan shall be allowed in excess of any amount for which the corresponding monthly amortization (principal plus interest), when added to other deductions from the borrower’s pay, will produce deductions totaling more than 60% of the borrower’s pay (basic monthly salary). However, in cases where the recurring deductions exceed 60%, additional sources of income and other covenants shall be required to satisfy the loan subject to appropriate credit approval.
    4. For retired members, deposits, sources of income and other covenants shall be required to satisfy the loan subject to appropriate credit approval.
  3. Condition of Vehicle
    • Loans shall be allowed for the purchase of new cars only. In all such cases, the employee must also show and warrant that all taxes, fees, and duties on the vehicle have all been paid and that there are no obstacles to the transfer of the car ownership to his name.
  4. Repayment
    1. Loan is payable up to maximum of FIVE (5) years.
    2. Repayment of principal and interest on the loan will be made in equal monthly installments through payroll deduction for borrowers under payroll.
    3. For non-payroll members, repayment of principal and interest on the loan will be made will be made in equal monthly installments through post-dated checks.
    4. The borrower may liquidate without penalty, at any time, his outstanding loan balance.
  5. Subsequent Loan

    1. Second time loans shall be granted only after his original obligations are settled.
    2. The interest rate agreed upon at the time of application shall take effect in the entire duration of the loan. Such that the loan is not affected in the event SESLA reduces or increases the interest rate.
  6. Interest and Handling/Service Fees

    1. Interest rate currently under review
    2. No handling fees (already integrated in the interest rate).
  7. Mortgage

    1. As security for the loan, the borrower shall execute the following:
      1. For employed members, a Deed of Assignment of his Retirement Pay.
      2. For retired members, same as payroll members no more back to back loans.
      3. Loan agreement with Car Loan in favor of the Association.

        The mortgage registration shall be arranged by SESLA and all cost incurred shall be for the borrower’s account. All car documents required from the borrower must be submitted and duly accomplished before release of the loan.

        This mortgage shall constitute a lien on the vehicle and shall be cancelled only upon full payment of the loan. No other mortgage shall be executed over the vehicle in favor of the second party. In case of default, the mortgage shall be foreclosed by SESLA and the proceeds applied to the outstanding loan balance.

    2. Original copy of the Official Receipt and Certificate of Registration and all other documents duly accomplished must be submitted before release of the loan.
    3. In case of default, the Association has the right to sell the property and the proceeds shall be applied to the outstanding loan balance.
  8. Insurance
    • The borrower shall be obliged to insure the vehicle in favor of SESLA for the amount equivalent to the principal amount of loan against:
      1. Bodily injury
      2. Property Damage
      3. Damage to Vehicle
      4. Theft
    • The copy of the annual insurance policy duly endorsed in favor of SESLA shall be submitted by the borrower without fail, else the default provision of the mortgage document shall be effected.
  9. On Leaving the Company Service
    1. In case of separation from the service either by resignation, discharge, death, or for any other cause, the full balance of the loan shall become immediately due and payable.
    2. The borrower or his heirs should, therefore, pay the outstanding balance to the Association; otherwise, the unit shall be subject to sale.
  10. Default in Payment
    • In case of default, the following procedures shall be undertaken:
      • 1 month default – demand letter
      • 2 months default – 2nd demand letter
      • 3 months default – 3rd demand letter
      • 4 months default – repossession and sale of motor vehicle and execute the corresponding deed of sale and such other documents necessary to transfer ownership over the aforesaid motor vehicle in favor of any buyer.
  11. Fund

    • Application shall be on a first-come-first-served basis, limited by the amount available for any given time.
  12. Procedure in Processing of Loan under Car Loan

    1. Evaluation
      • Capacity to pay based on borrower’s pay slip, spouse’s income
      • Basic Documents
    2. Loan Processing / Preparation of Check
    3. Approval of Credit Committee.
    4. Documentation
      1. Preparation of the following:
        • For employed members, a Deed of Assignment of his Retirement Pay.
        • For retired members, a Deed of Assignment of his Capital Contribution and/or time deposit account.
        • Loan Agreement with Car Loan in favor of the Association.
      2. Registration of Loan Agreement and Annotation of CR to be accomplished by SESLA. All expenses relative to the registration and annotation shall be for the borrower’s account.
      3. Verification and submission of original documents and signatures on LTO OR and CR.
    5. Release of Check Payable to Vendor