Rediscounting Facility


Rediscounting Facility is a credit facility intended to supplement the operating capital of Accredited Financial Institutions (AFIs) in delivering timely and adequate credit.


Product Features
Loan Amount
Shall be determined based on the following, whichever is the lowest, viz:
a.) Borrower’s actual need / requirement;
b.) Paying capacity;
c.) Loan value against offered collateral; or,
d.) Single borrower’s Limit (SBL) of OFBank (formerly Postbank)
Loan Term
Eighteen (18) months from date of approval
Mode of release

Direct credit to the borrower’s account maintained at OFBank (formerly Postbank), or thru issuance of Manager’s Check in favor of the borrower

AvailabilityLump sum / one-time promissory note per batch maturity or in tranches as per client request duly supported by Notarized Board Resolution or Secretary’s Certificate
Interest RateBased on the prevailing posted lending rate of the Bank at the time of loan availment or as may be contracted or agreed upon by the Bank and the borrower, provided that such rate does not drastically deviate from the prevailing posted rate and is well above the break-even threshold of the Bank
Interest Repricing Monthly, Quarterly, Semi-annually, Annually and Fixed for the term
Mode of Repayment 
a.) Issuance of Post-Dated Checks (PDCs) covering all installments/ amortizations every repricing period; or,
b.) Direct debit from the borrower’s deposit account with OFBank (formerly Postbank); or,
Lump sum / one-time promissory note per batch maturity:
Principal and Interest: monthly amortization thru PDC per batch maturity
In tranches:
Principal: based on Sub-PNs, either monthly, quarterly, semi-annually or annually provided that sub-PNs which may be paid daily, weekly, semi-monthly or monthly shall be paid/remitted to the Bank monthly
      Interest: in arrears 
CollateralAssignment of the Accredited Financial Institution’s (AFI), in favor of OFBank (formerly Postbank), of all its rights, title to and interest in the sub-loans or PNs of its sub-borrowers, inclusive of any and all of the collaterals (real estate/ chattel mortgages, pledges, guarantees, suretyships, assignments, holdouts), and the supporting documents thereof as required by the AFI from its sub-borrowers. 


Fees and Charges
Application Fee₱1,000.00 / Not applicable for credit line renewals



Bank Fees: 
Processing  / Service Fee1,000.00 or 1/10 of 1% of the approved amount whichever is higher but not more than ₱5,000.00
Handling Fee½ of 1% of the approved loan amount / Not applicable to credit line renewals
Third Party Fees: 
Documentary Stamp Tax₱1.50 for every ₱200.00 of approved loan amount
InsuranceNone, but for sub-loans that are insured, the insurance policy must be properly endorsed in favor of the AFI
     Notarial FeeDependent on the nature of the document and based on the prescribed IBP rates


Commitment Fee½ of 1% of the undrawn balance, to be collected if no drawdown was made within the required period. Not applicable to Revolving Credit Line (RCL)
Pre-Termination Fee3% of outstanding balance terminated within the term of the loan
Penalty2% per month on amortization in arrears
Certification Fee
200 to cover cost of administrative expenses
Bank Guarantee – Fee½ of 1% of the total amount in the guarantee letter
Bank Statement – Fee
30 per page upon request of the client except the monthly statement issued by the bank


Minimum Qualifications / Eligibility

To avail of this facility, the Financial Institution must be duly accredited by the OFBank.



Financial institutions shall refer to:
  • Rural Banks (RBs)
  • Cooperative Banks (CRBs / CBs)
  • Cooperatives
Documentary Requirements
  • Customer Information Sheet (CIS) of elected officials and signatories and Signature Cards
  • Presentation of at least one primary ID or two valid secondary IDs, one of which with photo and signature of authorized signatories and representatives
  • Application for the loan in the form of Board Resolution
  • Corporate documents
  • Financial Statements
  • Others as may be required


Contact Information

For more information, please feel free to call or visit your nearest or preferred OF Bank Branch.