Group Loan Agreement Form Template for Philippines

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Key Requirements PROMPT example:

Group Loan Agreement Form

"I need a Group Loan Agreement Form for a women's agricultural cooperative in Mindanao, with 15 members borrowing a total of 500,000 PHP, including specific provisions for seasonal repayment schedules aligned with harvest periods."

Document background
The Group Loan Agreement Form is essential for microfinance and community lending operations in the Philippines, where group-based lending is a common practice to provide financial access to underserved communities. This document is used when multiple borrowers form a group to collectively obtain and guarantee a loan, typically for small business, agricultural, or community development purposes. It complies with Philippine banking regulations, including the General Banking Law of 2000 and the Microfinance NGOs Act, while incorporating necessary consumer protection provisions. The agreement details group structure, joint liability, individual responsibilities, and collective decision-making processes, making it particularly suitable for microfinance institutions, rural banks, and community development organizations operating in the Philippines.
Suggested Sections

1. Parties: Identification of the Lender and all Group Members, including their complete details as required by Philippine regulations

2. Background: Context of the group loan arrangement and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Loan Amount and Purpose: Specification of the total loan amount, individual allocations, and approved purpose of the loan

5. Group Structure and Leadership: Definition of group organization, roles of group leaders, and collective responsibilities

6. Joint and Several Liability: Terms establishing the collective responsibility of the group for the loan repayment

7. Repayment Terms: Payment schedule, interest rates, and method of payment

8. Group Member Obligations: Specific responsibilities of each group member, including meeting attendance and savings requirements

9. Default and Remedies: Consequences of default and procedures for handling non-payment

10. Representations and Warranties: Statements of fact and promises made by the group members

11. Term and Termination: Duration of the agreement and conditions for early termination

12. Governing Law: Specification of Philippine law as governing law and jurisdiction

13. Execution: Signature blocks for all parties and witnesses

Optional Sections

1. Collateral Requirements: Required when the loan includes specific collateral arrangements for additional security

2. Insurance Provisions: Included when loan insurance or life insurance is required for group members

3. Training and Capacity Building: Added when the loan program includes mandatory training or financial literacy components

4. Savings Component: Included when the loan program requires mandatory savings from group members

5. Electronic Payment Terms: Added when electronic payment methods are available and used

6. Group Constitution: Required for formal group structures with specific operational rules

7. Dispute Resolution: Detailed alternative dispute resolution procedures when required by the lender

Suggested Schedules

1. Schedule A - Group Member Details: Complete information about each group member including contact details and contribution amounts

2. Schedule B - Loan Repayment Schedule: Detailed payment schedule showing dates, amounts, and allocation among group members

3. Schedule C - Group Rules and Regulations: Internal rules governing group operations and meetings

4. Schedule D - Collection Procedures: Detailed procedures for loan collection and handling of payments

5. Appendix 1 - Required Documents: List of supporting documents required from each group member

6. Appendix 2 - Meeting Attendance Form: Template for recording attendance at group meetings

7. Appendix 3 - Payment Record Form: Template for tracking individual and group payments

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Banking & Financial Services

Microfinance

Rural Development

Agriculture

Small Business Development

Community Development

Social Enterprise

Cooperative Banking

Non-Profit Organizations

Development Finance

Relevant Teams

Legal

Compliance

Credit Risk

Microfinance Operations

Rural Banking

Community Development

Document Administration

Financial Inclusion

Credit Administration

Banking Operations

Relevant Roles

Microfinance Officer

Loan Officer

Credit Risk Manager

Community Development Officer

Legal Counsel

Compliance Officer

Banking Operations Manager

Rural Banking Officer

Credit Administrator

Financial Inclusion Specialist

Development Program Manager

Group Formation Officer

Contract Administrator

Legal Documentation Specialist

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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