AFPSLAI was first conceptualized to answer the ever-pressing need of soldiers for loans to augment their meager salary, particularly, when the AFP Mutual Benefit Association, Inc. (AFPMBAI) was stopped by the Insurance Commission in 1968 from engaging in direct lending.
The AFPMBAI Board of Trustees, wishing to continue giving such assistance to its members within the limits offered by law, decided to seek the mandate of its Chamber of Representatives. Subsequently, a referendum on the organization of a savings and loan association was conducted in November and December 1968. On January 4, 1969, the Board announced that more than 2/3 of the Chamber voted affirmatively.
The AFPMBAI directors, along with four others, constituted themselves as Incorporators of the proposed savings and loan association.
Difficult years of planning and organizing followed. On January 7, 1972, the Central Bank, in accordance with law, conducted a public hearing at the AFPMBAI Auditorium and received a general response affirming the decision to organize the AFP Savings & Loan Association, Inc. Towards the end of the year, the Central Bank approved the By-Laws and Articles of Incorporation. On November7, 1972, AFPSLAI was registered with the Securities and Exchange Commission (SEC) under Registration No. 49060.
With everything in place, the Central Bank of the Philippines, by virtue of Republic Act 3779 (otherwise known as the Savings and Loan Act), granted AFPSLAI the Certificate of Authority to operate as a non-stock savings and loan association.
With only a seed capital of Php 1,000,000.00 from AFPMBAI and a manpower of eleven (11), AFPSLAI started its operations in a small office space at the ground floor of the old AFPMBAI building.
Upon admission to the Association, a member shall make a monthly contribution of Php 5.00 through payroll deduction which was adopted in coordination with various Finance Centers. The first Php 100.00 was treated as capital contribution, and shall not be withdrawn within three (3) years, except upon separation from the Association. Members were also allowed to give the required minimum capital contribution of Php 100.00 in lump sum. The succeeding monthly contributions were considered as additional capital contribution, savings deposit or time deposit, which earned interest at 6% - 8% per annum.
Loan operations of AFPSLAI commenced on January 1, 1973. All loans were payable in twelve (12) equal monthly installments. No surety was required if the loan was equal to or less than the capital contribution of the borrower, and no member was allowed to become a surety for more than one borrower. The interest on loans was 12% per annum, deducted immediately from the amount of the loan.
The Association confined its deposit and lending operations only to members stationed in Manila, Quezon City, Caloocan City, Pasay City and in the Greater Manila Area comprising the towns of Makati, Mandaluyong, Parañaque, San Juan, Pasig, Pateros, and Taguig.
AFPSLAI’s capital base began to broaden as years went by. Within three (3) years, AFPSLAI was able to return, on staggered basis, the initial investment of AFPMBAI.
Towards the end of the 70s, it decided to open its doors to the policemen, thus, it became the Armed Forces and Police Savings & Loan Association, Inc. With the widening of its membership base, AFPSLAI likewise embarked into expanding its operational jurisdiction. Plans to put up extension offices in various parts of the country began to unfold. With its Total Assets placed at Php 40M in 1979, AFPSLAI has in fact not just achieved in building a name of its own but became the enviable leader in the industry.
Against a backdrop of discouraging economic and business scenario in the 80s, the Association steered through the years and proved its resiliency and strength by registering significant gains in both financial and operational aspects. The putting up of extension offices brought AFPSLAI services closer to its members. In 1983, Total Assets reached Php 158.17M.
Shortly after the EDSA revolution, the new Board, headed by Gen Fidel V Ramos AFP, initiated policy reforms in its operations. To attract borrowers, loan rate was reduced from 16% to 12 % per annum. Loan processing was decentralized to improve operational capabilities of its regional offices. Innovative programs couched in catchy acronyms were also implemented such as CARES (Credit Available for Reasonable Expenses), LIVES (Livelihood Inputs for Viable Enterprises), HOUSE (Housing On/Off Base Using Self-help Enterprises), ALMS (Assistance to Lift Member’s Survivors) and CHEERS (Christmas Holiday Encashment for Enjoyable Reunion and Sharing).
By July 4, 1988, AFPSLAI’s Total Resources reached the Php 1B mark. This figure is more than 38% of the combined resources of the 77 existing savings and loan associations at that time. Thus, no less than the Central Bank Governor Jose Fernandez cited this record achievement as a milestone in the country’s efforts towards economic recovery. Total resources doubled a year later and then reached the Php 3B mark in 1990.
As of 2018, AFPSLAI’s Total Assets has reached Php 96B.