Section 3: Types and Priority of Loans

3.0. GARIC may offer different credit products, depending upon the needs and on the credit
record of its members. Types of loans include:

Agricultural Loans.

This type of loan is given to help finance the agricultural and related activities of
the members.

Educational Loans.

This type of loan is use for the payment of educational expenses of dependents
of the members. The interest of this type of loan is lower than the rate of interest of
other loans. Documentary evidences must also be included in the application of loan.

Emergency loans.

Emergency loans include sudden hospitalization, funeral expenses, and

unforeseen calamities. In all cases emergency loan applications must have documentary
evidence. The following conditions apply:

I. Every member shall be entitled to only one emergency loan at a time.

II. The amount of loan shall not exceed P 15000 or 250 % of its share capital
whichever is lower.

3.1. Whenever there are more application for loans than the funds available, preference will be
given in all cases to emergency loans and to other smaller loans. However, where amounts
applied for are approximately the same, the preference will be given to loans for shorter period.
Within the foregoing preferences, priority shall be given in the following order:

I. Members who have never had loans before;

II. New members who have qualified for loans; and

III. Members who have cleared their previous loans and have applied for fresh
loans.

3.2.