Rachel Corpus walked into your store to apply for GECO-motorcycle to be hooked up to a sidecar - the monthly instalment is P4,000, 36months to pay.She is separated from her husband, civil engineer Richard Bico.Now residing in Cebu City.

Rachel was born in Pagadian City but studies (from high school to college) in Cebu City.After graduation, she resided there with her husband who provided her with good income; thus, she had no need for a job, even if she is qualified computer engineer.She moved back to Pagadian City 2 years ago and rented an apartment.Her current residence, her 3rd is also an apartment (much bigger).Her parents now deceased, left her an 8,000 sq.m. farm in Barangay Macasing which has 30 fruit-bearing mango trees that provide a net income of P3,000 per tree per year.The family farm in the house is still liveable, but Rachel feels more comfortable in the city proper.

She started working as a computer instructress at Aim Tech Colleges since last year.She is paid P800 per subject, gross.She has 10 subjects.She has no loan and she does not belong to a union.

She also has a sri-sari store, in front of her apartment, which sell, on gross basis, P1,000 daily.She pays her maid P1,500 monthly, plus free food.The maid doubles up as the sari-sari store caretaker.To stock up on her store, she goes to Maya's wholesaler to buy groceries.The average grocery item could be bought wholesale at P20.00, and sold for P25.00 retail.Her apartment's rent is P3,000 and she pays P700 monthly for her electric, water, telephone and cable bills.She uses P400 worth of prepaid cell phone cards per month.

She intends to lease out (boundary system) her tricycle at P120 per day.So it is a self-liquidating investment, she says.Monthly maintenance on the tricycle is estimated at P500.

She has 2 appliances on installment: 1 TV - 2 more months to go at P500/month and a refrigerator (2 doors) 18 months to go at P1,000 monthly.She has a CD player, a stereo, and an expensive sofa set, all paid for.She always paid on time.

Her boyfriend, she was proud to mention (without being asked) is now in California; he visits as a balikbayan every 6 months.A green card holder, he will be a US citizen in 4 years.

Rachel is a bar freak and every payday she and her friends would end up in the city's better bars and discos.

Question: Decide whether to approve or disapprove. Explain elaboratively.

Answer rating: 100% (QA)

Loan Application Analysis Rachel Corpus Creditworthiness Positive factors Regular income from stable ... View the full answer