CASE 2: JUAN AND MARIA SANTOS
Presentation of the Case:
Facility Applied for: P1, 500, 000 Revolving Credit
Purpose of Loans: Additional Working Capital
Collateral: House and Lot in a subdivision beside Ayala Alabang
Appraised Value: Lot sq. meter P 1, 540, 000.00 House P 1, 200, 000.00 Fence/Landscape P 100, 000.00 Total P 2, 840, 000.00
Loan to Security Ratio (LSR) 53%
Debt to Burden- For interest only 17% versus 25% guideline
Facts of the Cases: * Age(s)
Juan- 37 y/o
Maria- 35 y/o
Son (dependent)- 7 years studying at La Salle * Clients are depositors of Paranaque Branch with STD of $20, 000.00 * Other Asset(s) 2 cars. A 2-year old car financed by BA finance (good credit checking) and 3-year old car

Source(s) of Income: * Fast food Business in Mandaluyong selling BBQ, siopao, mani, goto. One year in operation. Net income of 24, 000.00 a month * Uno Marketing retailing medical products with 2 branches (Mandaluyong and Paranaque) including drug store operations. Net income of P 120, 000.00 per month. Total income is P 144, 000.00 per month.

Deviation Request:
Waiver of submission of Statements- Income to be taken as claimed by the clients
Questions:
* Should the creditor approve the loan request? * What are the risks involved? I. Point of View In creditor’s point of view, the facility applied for a P 1, 500, 000.00, revolving credit for the purpose of an additional working capital. Revolving credit is the type of credit that does not have a fixed number of payments. The borrower may repay over time (subject to any minimum payment requirement), or in full at any time. Revolving credit facilities are typically used to provide liquidity for a company's day-to-day operations.
II. Statement of the Problem * Considering all his credit background, will the creditor approve the loan without having