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.