Loan Redemption Fund (LRF) Plus gives full loan protection to member-borrowers and protects CARD MBA’s accredited lending institutions by ensuring 100% collection of loans extended to the members in case of death. An ordinary LRF pays only the balance of the loan but this program pays the total amount of loan of the deceased member-borrower.
The amount of contribution is based on the principal amount and term of loan extended to the members.
- 1.5% of the principal amount for a one-year loan term
- 0.75% of the principal amount for a six-month loan term
- 0.38% of the principal amount for a three-month loan term
Upon receipt and approval of due proof of death, CARD MBA will pay:
- the lending institution – the balance of loan at the time of death; and
- the beneficiary – the paid portion of the loan at the time of death.
Automatic Loan Offsetting After Disability (Auto LOAD) Benefit
In case of total and permanent disability (TPD) of a member-borrower as certified by a competent physician, CARD MBA will pay the balance of loan to the lending institution at the time when the member-borrower becomes TPD. However, the paid portion of the loan will not be reimbursed to him/her because s/he is only totally and permanently disabled.
The benefit under Loan Redemption Fund (LRF) Plus is on top of the life insurance benefit that the beneficiary can get from the Basic Life Insurance Program of CARD MBA.