Terms and Condition for Personal Loan

IMPORTANT: Please carefully read these Terms and Conditions Governing EastWest Personal Loan that constitute the Agreement between East West Banking Corporation ("Bank") and the Borrower. By signing the Promissory Note, the Borrower acknowledges receipt of a copy of the instrument including the Disclosure Statement on loan transaction and loan amortization schedule prior to the consummation of the credit transaction. The Borrower further confirms that he/she has read, fully understands and fully agrees with the Terms and Conditions of the Promissory Note and acknowledges that he did not sign the instrument with any blank space thereon.

1. The Obligation. The Obligation refers to the obligations arising from the loan extended by the Bank to the Borrower under this Promissory Note (“PN”), including increases, renewals, extensions, restructurings, amendments, or novations thereof. The Obligation shall include the principal, interest, penalties, fees, and other charges that appear in the accounts, books, and records of the Bank, whether direct or indirect, principal or accessory, contingent or otherwise, which are presently or hereafter owing to the Bank, and all expenses which the Bank may advance or incur in enforcing any of its rights, powers, and remedies under this PN.

2. Applicability of the Terms and Conditions of the Promissory Note. Whenever this PN refers to the Borrower, the same shall also refer to the Co-Borrower. Therefore, all obligations of the Borrower under this PN shall also be deemed the obligations of the Co-Borrower.

3. Representations and Warranties of the Borrower. The Borrower represents and warrants that:

This PN has been authorized by all necessary acts and deeds, and when executed and delivered as contemplated herein, will be valid and binding in accordance with its terms and conditions; and
There is no pending, impending, or threatened action or proceeding before any court or government agency which may materially and adversely affect the financial condition or capacity of the Borrower to promptly and fully pay the Obligation and such capacity shall remain unimpaired.

4. Borrower Covenants and Undertakings. The Borrower covenants and undertakes that:

Use of Loan Proceeds. The proceeds of his/her Personal Loan will not be used for any purpose or in any endeavor which is against Philippine laws, rules or regulations. Furthermore, the proceeds of his/her Personal Loan will be used for the purpose stated on his/her application.
Other Deeds. The Borrower shall execute and deliver such further instruments and perform such other acts as the Bank may deem necessary or proper to more effectively carry out the intention of this PN; and
Fees. The Borrower shall pay any and all taxes, fees, and expenses in connection with the execution of this PN, including any extension, renewal, amendment, or cancellation of this PN. Fees and charges which are deducted from the loan proceeds shall be non-refundable in any case.
Performance of Agreement. The Borrower shall pay the Obligation and perform all covenants and agreements set forth in this PN.

5. Due Date. If the due date of this PN or of any installment payable hereunder falls on a holiday or a non-working day, the Due Date shall be understood to be the immediately following business day.

6. Adjustment. If there is any extraordinary increase or decrease in the effective purchasing power of the Philippine currency, the Bank shall have the right to make corresponding adjustments in the interest rate under this PN which, except for manifest error in the computation thereof, shall be conclusive upon the Borrower. A change of at least fifteen percent (15%) in the Consumer Price Index for Manila from the date of this PN as set forth in the figures released by the Bangko Sentral ng Pilipinas (“BSP”), or other agencies of the Philippine Government should the figures of the BSP be unavailable, shall be regarded as an extraordinary increase or decrease in the effective purchasing power of the Philippine currency. If the Borrower disagrees with the adjustment, the Borrower shall, subject to Section 8 hereof, have the right to prepay this PN within thirty (30) days from receipt of the notice of adjustment from the Bank. If the Borrower does not prepay this PN within the said 30-day period, the Borrower shall be deemed to have agreed to the adjustment.

7. Additional Taxes and Statutory Fees. Any additional taxes, fees, and charges that may be imposed on the Obligation under this PN, pursuant to law, executive issuances, or other rules and regulations enacted and issued by the Philippine Government, its agencies and other instrumentalities during the effectivity of this PN, shall be automatically included herein and the Borrower shall be liable for these additional charges without necessity of executing any notice, new agreement or other document. The Bank shall have the right but has no obligation to apply any installment payment for the payment of these additional taxes, fees, or charges.

8. Continuing Liability. The Borrower shall continue to be liable with respect to his/her obligations to the Bank during any extension or renewal, in whole or in part, of this PN and/or following a partial payment of this PN, and/or following any change in the interest rate or other terms and conditions of this PN as a result of such extension, renewal and/or partial payment, without the necessity of executing a new promissory note.

9. Loan Processing Fee. The Borrower shall pay a one-time fee imposed to answer for the cost of processing the loan application. The loan processing fee shall be One Thousand Nine Hundred Pesos (Php1,900.00) and shall be deducted from the loan proceeds.

10. Payment. In case of prepayment of this PN, the outstanding net obligation shall be computed based on the principle of diminishing balance. If the Loan is prepaid before maturity, the Borrower is entitled to an interest rebate (where the computation is also based on the principle of diminishing balance). The Borrower, however, will be charged a processing fee equivalent to Five Hundred Pesos (PhP500.00) or eight percent (8%) of the principal balance of the Obligation, whichever is higher. Furthermore, whenever applicable, the Borrower shall be charged the cost of any item given to him as incentive for the availment of a Personal Loan in accordance with the terms and conditions governing the grant of such incentive. Prepayment of this PN shall be processed and posted only after Borrower shall have paid the prepayment processing fee, the outstanding net obligation and the cost of any item given to the Borrower as incentive for the availment of a Personal Loan, if applicable, through any of the Bank’s branches. Proof of payment of said items must be submitted to the Bank at least ten (10) banking days before the due date of his/her next amortization. Failure of the Borrower to submit the proof of payment of said items within the prescribed time shall entitle the Bank to deposit the post-dated check issued by the Borrower for the next amortization and the Borrower shall hold the Bank free and harmless for any fees, charges, and losses that the Borrower may incur in case such post-dated check is deposited by the Bank. The Borrower hereby authorizes the Bank to destroy any and all post-dated checks issued by the Borrower to the Bank in connection with the Obligation and/or this PN thirty (30) days after receipt by the Bank of the proof of payment of the prepayment processing fee, the outstanding net obligation and the cost of any item given to the Borrower as incentive for the availment of a Personal Loan. The Borrower hereby agrees to hold the Bank free and harmless from any liability in connection with such destruction of the subject post-dated checks.

11. Check Retrieval and Replacement. Retrieval and replacement of post-dated checks initially issued by the Borrower to the Bank upon claiming by the Borrower of his/her loan proceeds shall be charged a fee of Two Hundred Pesos (PhP200.00). Check retrieval and replacement shall be processed only after the Borrower shall have paid the check retrieval and replacement fee through any of the Bank’s branches and submitted the complete replacement checks and proof of payment of the check replacement fee to the Bank at least ten (10) banking days before the due date of the Borrower’s next amortization. Should the Borrower fail to submit the complete replacement checks and proof of payment for the check retrieval and replacement fee within the prescribed time, the Borrower must settle his/her next amortization by funding the checking account from which he issued his/her original post-dated checks or through an over-the-counter payment at any of the Bank’s branches. The Borrower shall not hold the Bank liable for any fees, charges, and losses that the Borrower may incur in case any post-dated check intended to be replaced by the Borrower is deposited by the Bank due to the Borrower’s failure to submit the said requirements for check replacement within the prescribed time.

12. Check Disposition. Checks issued by the Borrower which the Bank will no longer negotiate due to replacement, payment over-the-counter or for any other reason shall be destroyed within a period of thirty (30) days from the date of check replacement or Borrower’s notification of pre-payment, full payment, or payment over-the-counter duly supported by the proof of payment without notice to the Borrower. The Borrower holds the Bank free and harmless from any liability in connection with the destruction of the checks.

13. Payments.

The payment may be made through checks, Auto Debit Arrangement (ADA) or any other payment facility of the Bank subject to existing terms and conditions.
Check payments received after clearing cut-off time shall be value dated the next banking day. Payments made by check or other negotiable instruments shall produce the effect of payment only when the same shall have been cleared.
Acceptance by the Bank of payments made after the Borrower has delayed or defaulted in the performance of his/her obligations shall not prejudice the Bank’s rights to claim full payment and exercise its rights and remedies under this PN or prejudice pending legal actions filed by the Bank.
Acceptance of late or partial payments shall not be construed as a waiver or estoppel on the part of the Bank.
Payment/s made by third person/s shall not constitute a novation of the original loan agreement.

14. Default. Each of the following events, irrespective of the reasons for its occurrence or whether it is voluntary or involuntary, constitutes an event of default:

Failure to pay on a due date any installment, interest, penalty, or amount payable under this PN, whether at maturity, by acceleration or otherwise;
Failure to perform any of the terms and conditions of this PN or of any agreement evidencing indebtedness;
Death of the Borrower;
Severance or termination of employment of the Borrower;
The insolvency of the Borrower, the making by the Borrower of a general assignment for the benefit of other creditors, the commencement by or against the Borrower or any proceeding for insolvency, suspension of payments, appointment of receiver, foreclosure, or the issuance of a writ or order of attachment, garnishment, execution or similar act against the property, assets or income of the Borrower;
Any information, representation, or warranty made by the Borrower in connection with the Obligation shall become or shall prove to have been false when so made, given or furnished, including the use of the loan or a purpose other than that stated in this PN; or
The Bank's good faith belief at any time that the prospect of payment of the Obligation or the performance of this PN is impaired as shown by a default with respect to other obligations of the Borrower to the Bank under any other credit accommodation, the sale or disposition of any substantial portion of the assets or property of the Borrower, a default in any obligations of the Borrower to a third party, or such other circumstances and conditions which materially and adversely affect the financial standing of the Borrower or the ability of the Borrower to perform his/her obligations under this PN.

15. Remedies. Upon the occurrence of any event of default, the Bank shall have all the rights and remedies available under the law, including but not limited to:

Acceleration. The Bank may, without notice or demand to the Borrower, accelerate the payment or performance of any or all of the obligations of the Borrower hereunder.
Right to Set-off. All deposits, placements, or other properties belonging to the Borrower that are in the possession, custody, or control of the Bank may be applied by the Bank to the payment of the Obligation with subsequent notice to the Borrower. The Bank is hereby irrevocably constituted and appointed the attorney-in-fact of the Borrower, with full power and authority and with subsequent notice, to debit from and set-off or apply to the payment of the Obligations any funds which the Borrower may have deposited with the Bank, or which the Bank may have in its possession or control, including all or any interests or other income which may accrue thereon, including but not limited to time deposit accounts and/or long-term investments, which the Bank is hereby authorized to pre-terminate accordingly, to convert the funds into Philippine peso if denominated in foreign currency at the prevailing exchange rate at the time of set-off or pre-termination, it being understood that all taxes, expenses, and charges arising from the pre-termination or the account or investment shall be shouldered by the Borrower.
Cumulative Rights. The Bank’s rights hereunder are cumulative and not alternative.

16. Late Payment Fee (LPF). In the event any installment to or advance made by the Bank is not paid when due or when this PN is deemed in default, the Borrower is liable to pay the Bank an LPF equivalent to Five Hundred Pesos (PhP500.00) per month or eight percent (8%) per month of the past due amount, whichever is higher, with a fraction of a month to be considered as one (1) whole month, until such time the unpaid installment, the advances made by the Bank, or the whole sum remaining unpaid, as applicable, is paid in full.

17. Collection and Litigation Fees and Expenses. If the Bank is compelled to engage the services of a collection agent or attorney to enforce any of its rights under this PN, the Borrower shall pay the Bank the reasonable costs and expenses of engaging such collection agent and/or lawyer and such other expenses reasonably incurred by the Bank in recovering such payment and enforcing its rights under this PN.

18. Application of Payment. The Borrower waives his/her right to make application of payment under Article 1252 of the Civil Code and the Bank shall have the right to apply payments made by the Borrower to any of his/her obligations to the Bank, regardless of the source and nature of the said obligation. Payments for the Obligation shall be applied in the following order: (1) first to the expenses or payments advanced or incurred by the Bank, (2) to the fees and charges imposed on the Obligation; (3) to penalties incurred; (4) to the interest then accrued and unpaid, and; (5) the remainder, to the principal balance.

19. Change of Borrower’s Information. The Borrower shall immediately notify the Bank in writing of any change in his/her Personal Data (including civil status, residence, office and/or residence address and/or telephone number/s, and all related information) and change of his/her financial status which may prejudice or adversely affect his/her being a Borrower.

20. No Implied Waiver. The exercise of the rights, privileges, and remedies in this PN shall be at the discretion and option of the Bank. Acceptance by the Bank of payment of any installment or any part thereof after any due date shall not be considered as extending the time for the payment of any of the installments or as a modification of the conditions hereof. No failure, omission, or delay on the part of the Bank in exercising any of the said rights, privileges, and remedies shall operate as a waiver thereof. No modification or waiver of any provision or consent by the Bank shall be effective unless the same shall be in writing.

21. Assignment. The Bank may assign, cede, sell, or otherwise transfer part or all its rights and/or obligations under this PN. The Borrower will be notified in the manner provided under Section 23 hereof in event of any completed assignment, sale or transfer of part or all of the rights and/or obligations under this PN.

22. Venue of Actions. All actions for the enforcement of the rights and obligations under this PN shall be filed in the proper courts of Metro Manila; all other venues are hereby waived.

23. Notices. All notices and correspondence relative to this PN, including but not limited to demand letters, summonses, and subpoenas, shall be sent to the Borrower’s address above stated or to such other address as the Borrower may hereinafter give in writing to the Bank. The mere act of sending any communication by mail or personal delivery to said address shall be valid and effective notice to the Borrower for all legal purposes. The fact that such notice or communication is not actually received by the Borrower, or has been returned unclaimed to the Bank, or that no person is found at said address or that said address is fictitious, shall not excuse the Borrower from the effects of such notice or communication.

24. Severability. The unenforceability or invalidity of any provision of this PN by a court of competent jurisdiction shall not affect the validity, legality, and enforceability of the remaining provisions.

25. Effect of Agreement. The rights and privileges of the Bank hereunder shall inure to the benefit of its successors and assigns, and the duties and obligations of the Borrower shall bind his heirs, representatives, successors, and assigns.

26. Cooling Off. The Borrower is granted a “cooling off” period of seven (7) banking days immediately following the signing of the loan documents to cancel the loan without penalty, subject to an administrative processing fee of One Thousand Nine Hundred Pesos (Php1,900.00) and provided that the Manager’s Check issued to the Borrower will be returned to the Bank and that no drawdown has been made on the loan. The cancellation shall be communicated to the Bank through a written notice.

27. Amendments. The Borrower agrees that the Bank may change any of the provisions in this PN, including but not limited to the data privacy policy, and/or the Fee Schedule, from time to time and the Borrower agrees to be notified of such changes through notice sent through any of the following means, at the option of the Bank unless the Borrower requests otherwise: (i) mailed and/or emailed notices (sent to the Borrower’s mailing or email addresses indicated in the Bank’s records), (ii) notices posted at the Bank’s branches, or (iii) notices in the Bank’s website, and the Borrower agrees to be bound by such changes unless the Borrower expressly notifies the Bank otherwise through the contact information provided by the Borrower. The Bank’s non-receipt of advice from the Borrower within thirty (30) days from receipt of notice from the Bank in relation to said changes shall be deemed the Borrower’s agreement to all such changes or modifications. Where such Amendments are to the Fee Schedule or affect the fees and charges and the Borrower’s liabilities or obligations under this PN, the Borrower will be given not less than thirty (30) days’ notice before the Amendments take effect unless such changes are not within the Bank’s control.

28. Complaints. The Borrower must immediately communicate to the Bank upon his/her knowledge of a possible cause of complaint, unauthorized application, or any dispute regarding his/her loan account through EastWest Bank's 24-Hour Customer Service at (+632) 8888-1700 or e-mail csloans@eastwestbanker.com. The Bank shall acknowledge the complaint/dispute no later than two (2) banking days upon receipt of report by responding to the said complaint/dispute or requiring from the Borrower additional information or such other instructions as may be necessary to properly resolve it.

29. Agreement. The Borrower acknowledges that he/she has fully read and understood the Terms and Conditions Governing EastWest Personal Loan, and the Data Privacy Policy as published in the Bank’s website:https://www.eastwestbanker.com/info/ew_privacy.asp. The Borrower agrees to abide by and be bound by the said Terms and Conditions and Data Privacy Policy, any and all amendments thereto as well as all laws, rules, regulations, and official issuances applicable to the Bank which may hereinafter be issued, including other terms and conditions governing the use of other facilities, benefits, products or services which shall be made available to him/her. The Borrower hereby certifies that all information and documents given are complete, true and correct, and the signatures therein are genuine. The Borrower understands that non-disclosure and/or falsification of information and documents herein required shall be grounds for the filing of legal action/s against him/her, as may be appropriate under the circumstances.

30. Disclosure and Sharing of Information. The Borrower consents and authorizes the Bank to disclose information relating to the Borrower, the Obligation and/or the performance of the Borrower’s obligations under this PN to the Bank’s subsidiaries, affiliates, agents, and third parties that are authorized by the Bank to receive such information, for confidential use in connection with the Bank’s exercise of its functions to provide banking and related services. The Borrower also consents and authorizes the Bank or the parties to whom the Bank makes the disclosure to collect, process, store, record, organize, update, modify, block, erase and destroy information obtained from third parties in connection to Borrower’s Obligation. The Borrower further consents and authorizes the Bank to disclose, receive, process information for any business purposes (including but not limited to sales and marketing, credit investigation and collection, information technology systems and processes, data processing, imaging and storage, back-up and recovery, and statistical and risk analysis purposes). The Borrower hereby gives permission for the Bank to request information and to make necessary inquiries about the Borrower from third parties in connection with any of the Borrower’s Obligation, including its updates, renewals, re-issuance, or extensions.

Processing of Application. The Borrower hereby consents and authorizes the Bank, any of its offices, branches, subsidiaries, affiliates, agents, representatives and third parties, to conduct verification with the BIR, any other appropriate government agency or third party including banks and financial institutions, to establish the authenticity of the information he/she declared and the documents he/she submitted in relation to his/her application as it may be necessary for the processing and evaluation of his/her application and he/she hereby waives any rights on the confidentiality of his/her income information as required by BSP Circular 622, as amended by BSP Circular 855. The Borrower further consents and authorizes the disclosure of personal and sensitive personal information by the Bank, provided that such disclosure is in accordance with the provisions of Republic Act (R.A.) No. 10173 or the Data Privacy Act of 2012, its Implementing Rules and Regulations, and other rules and regulations relating to data privacy, including the Bank’s Data Privacy Policy published in its website. Additionally, the Borrower acknowledges, accepts and consents that his/her personal data may be collected, used, processed, stored, accessed, updated, shared, transferred or disclosed to the credit insights service provider/s using the Subscriber data obtained from Mobile Network Operators for the purpose of “telco score” using telecommunications usage data . The Borrower understands that the credit scoring (telco score) and analytics between the Bank and credit insights service providers are conducted for the purpose of credit evaluation related to his/her personal loan application and maintenance thereof.
Account Maintenance and Servicing. The Borrower hereby authorizes the transfer, disclosure and communication of the Bank of any information, including personal and sensitive personal information, relating to his/her account/s with the Bank together with all of the documents submitted for his/her application to any of its offices, branches, subsidiaries, affiliates, agents, representatives of the Bank and third parties for application processing, data processing/storage, customer satisfaction surveys, and for any other purpose as the Bank may deem appropriate, and/or as described in the Bank’s Data Privacy Policy, and as may be required by law or regulation. The Borrower hereby also authorizes the regular submission and disclosure to any and all credit information service providers listed in the Bank’s Data Privacy Policy published in its website, of any information, whether positive or negative, relating to his/her basic credit data (as defined under Republic Act No. 9510) with the Bank, as well as any updates or corrections thereof. The foregoing constitutes his/her written consent for any such submission and disclosure of information relating to his/her account/s for the purpose indicated above and under applicable laws, rules and regulations. The Borrower agrees to hold the Bank free and harmless from any liabilities that may arise from any transfer, disclosure or storage of information relating to his/her account/s.
Marketing and Sales Offers. The Borrower hereby authorizes the transfer, disclosure, and communication of the Bank of any information, including personal and sensitive personal information, relating to his/her accounts with the Bank together with all of the documents submitted for his/her application to any of its offices, branches, subsidiaries, affiliates, agents, representatives, and third parties for product and service offers to be made to him/her through mail/e-mail/fax/SMS/telephone or through other forms of media, and for any other purpose as the Bank may deem appropriate, unless the Borrower expressly notifies the Bank otherwise through the following contact information:
Customer Service Hotline (+632) 8888-1700
Email csloans@eastwestbanker.com

The Borrower agrees that such disclosure or exchange of information shall not be the basis of any claim against the Bank or the parties to whom the Bank makes the disclosure.
The Borrower agrees and authorizes the Bank to enroll his/her personal loan account in the Bank’s online banking facility.

For purposes of this authority to verify and disclose information, the Borrower waives confidentiality of any such information relating to him/her and/or his/her business under applicable laws such as but not limited to Republic Act Nos. 1405, 6426 and other laws relating to the secrecy of bank deposits.