It’s a deplorable fact: A lot of Pag-IBIG Fund Members, especially the employees, are not aware of the benefits they can derive from becoming (forcibly, since it is mandatory) a member of the Pag-IBIG Fund. For some, getting a payroll deduction for Pag-IBIG contribution is an automatic acceptance of something that is unavoidable -– no questions asked, no complaint unless the net salary is already far too low to even pay for electric bill. After all, there must be some deductions to the salary just like Income Tax, SSS or GSIS, right?
Well, since you are already at it and since it is an inescapable fact that you (and your employer) will be deducted with Pag-IBIG contribution, wouldn’t it be good also if you know where your money is going and what you are getting in return? After all, that’s still your money.
Here, we’ll discuss the three benefits you can get by participating in Pag-IBIG Fund. This is applicable to any member of the Fund : employees, OFW’s under Pag-IBIG Overseas program, and voluntary members alike.
If no one has explained this to you in the past, please read it carefully and share it to any Pag-IBIG Member whom you care about.
Okay, without so much talk, here are the three basic benefits you can get from being a member of Pag-IBIG.
- Housing Loan
- Short Term Loan
- Provident Savings
That’s it. Only three benefits so far and you need to remember and understand those. Detailed explanation of each one follows next.
Housing Loan — This is perhaps the most popular program benefit of the Pag-IBIG Fund. Any member knows a little bit about this. In fact, the mere mention of the term “Pag-IBIG Fund” almost always translates to Housing Loan.
One of the mandates of Pag-IBIG Fund is to be of assistance to the public in providing cheap financing for their housing needs. Pag-IBIG accomplishes this by working in partnership with the local Real Estate Developers and arranging affordable loans to real estate buyers (Pag-IBIG members).
An affordable loan means lower interest rate compared to the prevailing rate in the market and payable in longer terms. At the time of this writing, Pag-IBIG Fund offers a home loan at a low interest rate of 6% (for PhP 400,000 loan) with a loan term of up to 30 years. A qualified member can get a maximum loan amount of up to 3 Million Pesos.
Short Term Loan — Just like SSS and GSIS, Pag-IBIG Fund also offers financial assistance to qualified member by granting short term loan.
There is a Calamity Loan for members affected by unforeseen calamity like flood, fire, volcanic eruption and other similar cases. There is also a Multi-purpose loan that you can use for whatever reasons: financing a micro-business or buying the latest toy you have been dying to get.
So, the next time you need money, before asking from your friend (who has every doubt if you can ever pay him back), try your luck at Pag-IBIG Fund.
Provident Savings — This is something that a lot of members are not aware of. If you are one of them, pay attention to this part.
Another way of looking at your contributions to Pag-IBIG is to consider it as your savings, which you can withdraw at maturity date. Pag-IBIG Fund makes it very clear that your contributions, plus that of your employer will earn dividend. Now, you can get all that money, called Total Accumulated Value (contributions plus dividend), when it reaches maturity.
Unlike the money in a bank regular savings where the interest rate is given, your earnings in Pag-IBIG is not readily foreseen ahead of time. In other words, you are essentially participating in an investment and your earnings will depend on the overall performance of that investment.
Speaking about Savings under Pag-IBIG Fund, you may also want to check the Pag-IBIG II Program, which is another investment option from Pag-IBIG and is available only to its members.
This article on the Benefits of Becoming Pag-IBIG Fund Members is written by Carlos Velasco.