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Personal Loan

The Pag-IBIG Calamity Loan 101

by Pag-IBIG Financing Admin

The recent typhoons that hit the Philippines have really done so much damage to a lot of families and establishments. As with all types of calamities, those were unexpected and they caught the residents unprepared. A report said, typhoons Pedring and Quiel have rendered five provinces, eight cities, and five municipalities under the State of Calamity. In times like these, being a member of the Pag-IBIG Fund could somehow ease the burden knowing that Pag-IBIG can extend a helping hand.

This article discusses some of the most important things you should know about the Pag-IBIG Calamity Loan. Obviously, being a victim of a calamity, Heaven forbid, is something you want to delete from your wish list.

Note: This is an old article, but this is popular again due to the recent calamity that hit the country. However, the basic idea of the Pag-IBIG Calamity Loan remain the same, so read further and don’t forget to share this to your friends.

Pag-IBIG Calamity Loan vs Pag-IBIG Multi-Purpose Loan

Remember the three prime benefits available to Pag-IBIG Members? They are the following:

  • Short Term Loan Multi-Purpose
    Loan, Calamity Loan, Personal Loan, etc
  • Housing Loan — House and Lot Purchase, Home Construction, Home Improvement, etc
  • Provident Savings — Money which you can claim when the right time comes.

This is very important: The Pag-IBIG Calamity Loan is really just a special type of Multi-Purpose Loan. That means, when you apply for a Calamity Loan, you are bound by the same rules and guidelines set by Pag-IBIG when availing of a Multi-Purpose Loan. Some of these are as follows:

  • Member Qualification — The member must have contributed at least 24 months and must be active at the loan application.
  • Loan Amount – A maximum of 80% of the member’s Total Accumulated Value or TAV (personal contributions, employer’s contribution, and dividend)
  • Interest Rate – This is currently set at 10.75% per annum
  • Loan Term – The loan is payable in 24 months.

Plus, specifically for the Calamity Loan, the following also applies:

  • Grace Period – 5 months.
  • Member Residence – The member must be a resident of the affected area.

( See also: This article and this for a detailed discussion of the Pag-IBIG Multi-Purpose Loan.)

Question: What if I still have an outstanding Multi-Purpose Loan, can I still avail of the Calamity Loan?

Answer: Yes, sure, but the outstanding balance of your current MPL Loan will be deducted from the proceeds of the Calamity Loan.

Calamity Loan Requirements and Application Process

Calamity Loan Applications are accepted in Pag-IBIG branches or centers where the calamity areas belong. To facilitate the process, Pag-IBIG staff are deployed in the affected areas as well.

Members are advised to prepare the following documents when applying:

  • Certificate of net pay
  • Two valid identification cards
  • For government employees, a photocopy of Land Bank ATM Card

Normally, applicants will also be required to have a copy of the Certification from their Barangay Captains. But in the case of Pedring and Quiel victims, there is no need to do so since the Office of the President has already issued a statement declaring those areas under the State of Calamity.

Some Facts On Calamity Loan Related to Typhoons Pedring and Quiel

  • The Pag-IBIG Fund has recently approved the release PhP 601 M calamity loan intended for use by about 37,000 members affected by typhoons Pedring and Quiel.
  • Affected Members-Borrowes may also avail of the three-month moratorium on housing loan payments.
  • Loan Application is only accepted up to 90 days from the day the State of Calamity was declared.

August 2012 Update

For those who are affected by the recent typhoon Gener and the heavy monsoon rains, please check this link at the pagibigfund.gov.ph website.

~~~

“The Pag-IBIG Calamity Loan 101” is written by Carlos Velasco.

Filed Under: Other Loan Types Tagged With: Loans, MPL, Multi-Purpose Loan, Personal Loan, TAV, Total Accumulated Value

More on Pag-IBIG Multi-Purpose Loan

by Pag-IBIG Financing Admin

This short article is intended to supplement the original article on Pag-IBIG Multi-Purpose Loan (MPL).

We will present the information in a Question-And-Answer Format so that it will be easier for you to find those topics that are relevant to your situation.

It is worth noting that a lot of the questions we received regarding the MPL Loan has already been addressed in the aforementioned article.

In many of our articles, there are instances when we don’t answer some questions. Our apologies. But that’s because the answer has already been very obvious in the article — if only the reader spent a few more minutes reading the entire article and understanding it thoroughly.

So maybe if you want to ask something that’s related to Pag-IBIG Multi-Purpose Loan, please consult that article first and make sure that you read it in its entirety.

(The New Philippine Peso Bills Design Series of 2010 is shown below. Source: The Bangko Sentral Ng Pilipinas.)

The New Philippine Peso Bills, Since December 2010

1. Who can avail of the Pag-IBIG Multi-Purpose Loan?

The Pag-IBIG Multi-Purpose Loan is open only to Pag-IBIG Fund Members who meet the following basic qualifications:

  • Active or currently contributing to the Fund at the time of loan application.
  • Has made at least of 24 months contributions.

2. What is the maximum loan amount I can get from MPL?

The maximum amount is 80% of the TAV.

Are you also interested in knowing the minimum amount?

That’s easy. The minimum is 60% of the TAV.

Note again that this is a recurring question which has been addressed in the previous article. In case you are wondering what on earth is TAV or you want to get a detailed answer to this question, please read the first article on Pag-IBIG Multi-Purpose Loan.

3. What is the interest rate and term of this loan type?

The MPL interest rate is only 10.75% per annum and the loan is payable in 24 months.

4. How do I get the loan proceeds?

Once the loan has been approved, you may get the loan proceeds from the office where you made the application or it will be mailed to you. The whole approved amount may be released through:

  • Check – Payable to the borrower’s name.
  • LandBank’s Payroll Credit System Validation
  • Philippine Domestic Dollar Transfer System

5. Can I avail of the MPL even if I still have an outstanding Housing Loan?

Considering that Pag-IBIG Housing loan is usually a long term one, that’s possible.

However, take note of the following:

  • The loan should not be more than 9 months in arrears.
  • The account is not yet cancelled.
  • The property is not yet foreclosed.

In case your housing loan is already over 9 months in arrears, you may still be allowed to avail of the Multi-Purpose Loan if the account has not yet been cancelled or foreclosed and the proceeds of the loan shall be used to cover the arrearages (missed payments).

(See also: Pag-IBIG Housing Loan Default and Foreclosure.)

6. Can I use the Multi-Purpose Loan for Home Improvement?

Yes. As a matter of fact, it is preferable to the usual Housing Loan for use in Home Improvement in the sense that there are less documents required from you. The regular Home Improvement Loan is quite complicated with lots of required technical documents like House Design, Floor Plan, Project Costing, etc.

The only other thing to consider when you want this option is that, you can’t expect to get a large amount for your loan. But for many Pag-IBIG members, that amount is already enough to cover the expenses on renovation and improvements of the house.

Actually, you can use the proceeds of the loan in various ways. It’s all up to you.

~~~

More On Pag-IBIG Multi-Purpose Loan is written by Carlos Velasco.

Filed Under: Other Loan Types Tagged With: Home Improvement Loan, Loans, MPL, Multi-Purpose Loan, Personal Loan, Requirements, Salary Loan, TAV, Total Accumulated Value

The Pag-IBIG Multi-Purpose Loan

by Pag-IBIG Financing Admin

So far on this website, we have mostly focused on topics related to Pag-IBIG Housing Loan. That is indeed the most popular service or benefit available only to qualified Pag-IBIG Members.

The other popular program is the Multi-Purpose Loan (MPL) or sometimes referred to as Personal Loan. The Pag-IBIG Multi-Purpose Loan is essentially a financial assistance to Pag-IBIG Member that they can use for any of the following purpose:

1. Minor Home Improvement – Take note that this is only for minor home improvements. For renovation works requiring larger amount of money, you may want to avail of the Housing Loan for Home Improvement.

2. Small Business / Livelihood Financing – Good news to those who run small businesses or those planning to have one. You may use the proceeds of this loan to finance your small business venture whether it is for expansion or for initial start-up capitalization.

Pag-IBIG Personal Loan

3. Medical Assistance – If you find yourself in need of money for that medical bill, Pag-IBIG Multi-Purpose be of help.

4. Educational Purpose – You can even use it to finance your education.

5. Purchase of Appliances and Furniture – This refers to those toys that you have been wanting to buy.

6. Others – The list could go on. Actually, there can be many other things you can use that loan for.

Loan Amount, Interest Rate, Loan Term

Your loan entitlement depends on the number of contributions made and the Total Accumulated Value (TAV). Remember that TAV is defined as the member’s personal contributions, the corresponding contributions of his employer and the total dividend earnings.

So, how much can you loan exactly? The list below serves as reference.

  • 24 to 59 months contributions = Up to 60% of TAV
  • 60 to 119 months contributions = Up to 70% of TAV
  • 120 months contributions or more = Up to 80% of TAV

As you can see, the longer you have been contributing to the Fund and the larger the amount contributed, the bigger loan amount is also available to you.

The one nice thing about the Pag-IBIG Multi-Purpose Loan is that the interest rate can be as little as 10.75% per annum. That’s one of the most competitive rates in the market you can find.

The loan is to be amortized over a period of 24 months.

Loan Payments and Penalty

Paying for the loan is easier for those who are employed: payments can be done through salary deduction.

However, if you are voluntarily contributing, the following methods of payments are also available.

  • Over the counter
  • Auto-debit arrangement with accredited banks

A penalty of 0.5% of any unpaid amount shall be collected from the borrower for every month of delay.

How To Apply For Pag-IBIG Muti-Purpose Loan

1. Secure an MPL Application Form and checklist of requirements from any Pag-IBIG Fund Office.

2. Accomplish and submit the Application Form together with the requirements at the servicing branch.

3. Wait for the Loan Approval based on the date reflected on the MPL Acknowledgement Receipt.

4. Claim your check with your valid ID and the MPL Acknowledgment Receipt.

Filed Under: Other Loan Types Tagged With: Home Improvement Loan, Loans, Multi-Purpose Loan, Personal Loan, Salary Loan, Total Accumulated Value

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