Circular No. 322 - Amended Guidelines Implementing the Pag-IBIG Calamity Loan Program

8/13/2019 Circular No. 322 - Amended Guidelines Implementing the Pag-IBIG Calamity Loan Program

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Pag-IBIG FUNDCorporate HeadquartersPetron MegaPlaza Bldg.358 Sen. Gil Puyat AvenueMakati City

CIRCULAR NO.3

TO ALL CONCERNEDSUBJECT: AMENDED GUIDELINES IMPLEMENTING THE PAG-IBIGCALAMITY LOAN PROGRAM

Pursuant to the approval of the Pag-IBIG Fund Board of Trustees in its 288th BoardMeeting held last 9 October 2012, the following Amended Guidel ines Implementingthe Pag-IBIG Calamity Loan Program are hereby issued:

1. LOAN PURPOSETo provide financial assistance to Pag-IBIG member-victims in calamity-strickenareas, as declared by the Office of the President or the Sangguniang Bayan.

2. BORROWER ELIGIBILITYThe program shall be open to a Pag-IBIG me mber who satisfies t he followingrequirements:2.1 Has made at least twenty-four (24) monthly contributions;2.2 Has five (5) monthly savings for the last six (6) months as of month prior todate of loan application;2.3 If with existing Pag-IBIG Housing Loan, the account must not be in

defaul t as of date of loan applicat ion;2.4 If with existing MPL and/or Calamity Loan, the account must not be in

default as of date of loan application;2.5 Is a resident of the area which is declared calamity-stricken.

AVAILMENT PERIODThe Pag-IBIG member-victim must avail himself of the Pag-IBIG Calamity loanwithin a period of ninety (90) days from the declarat ion of state of calamity.

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4. LOAN AMOUNTA qualified Pag-IBIG member shall be allowed to borrow an amount based on thelowest of the following: desired loan amount, loan entitlement, capacity-to-pay.4.1 Loan Entitlement

An eligible member shall be entitled to a loan amount which is equivalent to80 of his Total Accumulated Value (TAV).4.2 Capacity to Pay

An eligible borrower's loan shall be limited to an amount for which statutorydeductions, monthly repayment of principal and interest, and other obligationswill not render the borrower's net take home pay to fall below the minimumrequirement as prescribed by the General Appropriations Act (GAA) orcompany pol icy, whichever is appl icable.The member's net take home pay shall refer to the member'S monthlycompensation net of statutory deductions, other authorized deductions,outstanding loan obligations, and computed monthly repayment for loan beingapplied for. Statutory deductions shall refer to income tax withheld as well ascontributions/premiums for GSIS/SSS, Pag-IBIG and PhilHealth.

However, if the borrower has an existing MPL, the loanable amount shall bethe difference between 80 of the borrower s TAV and the outstandingbalance of his MPL.

5 INTERESTThe loan shall be charged interest based on the Fund's Risk-Based PricingFramework for the entire duration of the loan including the grace period.

6. LOAN PERIODThe loan shall be amortized over a period of twenty four (24) months with a graceperiod of three (3) months.

7. LOAN RELEASEThe loan proceeds shall be released through any of the following modes:7.1. Crediting to the borrower's cash card / disbursement card;7.2. Crediting to the borrower's bank account through LANDBANK's Payroll

Credit Systems Validation (PACSVAL);7.3. Check payable to the borrower;7.4. Other similar modes of payment.


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8. LOAN PAYMENTS8.1. The loan shall be paid in equal monthly payments in such amounts as may

fully cover the obligation over the loan period. Said payments shall bemade, whenever feasible, through salary deduction.

8.2. Payments shall be remitted to Pag-IBIG Fund on or before the fifteenth(15t h day of each month starting, on the fourth 4 t h month following the dateon the DV/Check.

8.3. The borrower may fully pay the outstanding balance of the loan prior to loanmaturity.

8.4. The borrower shall pay directly to the Fund in case the borrower is unable topay through salary deduction for any of the following circumstances, suchas but not limited to:a. Suspension from Work;b. Leave of absence without pay;c. Insufficiency of take home pay at any time during the term of the loan.

9. PENALTY9.1 A penalty of one-twentieth of one percent 1 20 of 1 ) of any unpaid amount

shall be charged to the borrower for every day of delay.9.2 For borrowers paying through salary deduction, penalties shall only be

reversed upon presentation of proof that non-payment was due to the fault ofthe employer. In such case, penalties due from the borrower shall becharged to the employer.Non-remittance of the total loan amortization shall likewise subject theemployer with a penalty of one-tenth of one percent 1 10 of 1 ) perday of delay of the amounts payable from the date the loanamort izations or payments fall due until paid.

10. APPLICATION OF PAYMENTS10.1 Payments shall be applied according to the following order of priorities:

a. Penalties;b. Interest;c. Principal

10.2 Accelerated Payments - Any amount in excess of the required monthlyamortization shall be applied to future amortizations when due.

11. DEFAULTThe borrower shall be in default in any of the following cases:


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11.1 Any willful misrepresentation made by the borrower In any of thedocuments executed in relation hereto.10.1 Failure of the borrower to pay any three (3) consecutive monthlyamortizations.10.2 Failure of the borrower to pay any three (3) consecutive Pag-IBIG monthlycontributions.10.3 Violation by the borrower of any of the policies, rules, regulations andguidelines of Pag-IBIG Fund.

12. EFFECTS OF DEFAULTIn the event of default, the outstanding loan obligation shall become due anddemandable. As a consequence thereof, the outstanding loan obligationconsisting of the principal, interest and penalties shall be subjected tooffsetting against the borrower s TAV.

12. OTHER LOAN PROVISIONS12.1 The Calamity Loan and MPL programs shall be treated as separate anddistinct from each other. Hence, the member shall be allowed to avail of aCalamity Loan while he still has an outstanding MPL, and vice versa.Application for loans on these two programs shall be governed by their

corresponding guidelines.In no case, however, shall the aggregate short-term loan exceed eightypercent (80 ) of the borrower's TAV.

12.2 For borrowers with existing MPL at the time of availment of aCalamity loan, the outstanding loan balance of the MPL shall not bededucted from the proceeds of the Calamity loan.

12.3 Loan RenewalShould another calamity occur in the same area, a borrower may renew hiscalamity loan anytime. The outstanding balance of his existing loan,together with any accrued interests, penalties and charges, shall bededucted from the proceeds of the new loan.

12.3 Immediate Offsetting against Borrower s TAVOffsetting of the borrower's outstanding Calamity Loan obligation against hisTAV shall be effected immediately upon approval of the borrower's request;provided, such request is based on any of the following justifiable reasons andhas been verified by the Fund:12.3.1 Borrower's unemployment;12.3.2 Illness of the member-borrower or any of his immediate familymembers as certified by a licensed physician that, by reasonthereof, resulted in his failure to pay the required amortizations

when due;


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12.3.3 Death of any of his immediate family members that, by reasonthereof, resulted in his failure to pay the required amortizationswhen due.12.4 Availment of Calamity Loan after TAV Of fset ting

If TAV offsetting has been effected on the borrower s defaultingCalamity Loan, he may apply for a new Calamity Loan subject to thefo llowing conditions:12.4.1 If the borrower has paid at least 6 monthly amortizations priorto default and its consequent offsetting against the

borrower s TAV, the borrower may immediately apply for anew loan subject to the eligibility criteria provided in theseguidelines;

12.4.2 If the borrower has paid less than 6 monthly amortizationsprior to default and its consequent offsetting against theborrower s TAV, the borrower may apply for a new loan onlyafter two years from date of TAV offsetting and subject to theeligibilit y c riteria provided in these guidelines .12.5 Membership Termination

12.4.1 In the event of membership termination prior to loan maturity, anyamount outstanding, including the unpaid interest, penalties andcharges, shall be deducted from the borrower's Total AccumulatedValue and/or any amount due him or his beneficiaries in thepossession of the Fund.

12.4.2 In case of borrower's death, the outstanding obligation shall becomputed up to the date of death. Any payments received afterdate of death shall be refunded to the borrower's beneficiaries

13. ESCALATION OF ISSUESAny issue in the interpretation and implementation of these guidelines shallbe resolved by the Department Manager III concerned or shall be escalated tothe next h igher approving author it ies.

14. AMENDMENTSThe Senior Management Committee may amend, modify or revise certainprovisions of these guidelines provided, the amendments, modifications, andrevisions thereof, are in furtherance of the objectives of this program and consistentwith the mandate of the Fund under its charter and existing laws.

15. REPEALING CLAUSEAll memoranda, rules, regulations, and other issuances inconsistent herewith arehereby repealed, amended or modified accordingly.

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16. EFFECTIVITYThese guidelines take effect immediately.

Makati CityDecember 5 2 12

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Circular No. 322 - Amended Guidelines Implementing the Pag-IBIG Calamity Loan Program

Documents

Transcript of Circular No. 322 - Amended Guidelines Implementing the Pag-IBIG Calamity Loan Program