QuestionsQuestions (HDMF CIRCULAR NO. 56-I)
The circular states it is issued pursuant to Rule IV, Section 3(a) of the IRR of RA No. 9679, in relation to Item 14 of Circular No. 56-H. It amends Circular No. 56-H accordingly.
The program aims to align non-IISP branches (where the new STL system under the Integrated Information Systems Project is not yet operational) with the specific provisions of Circular No. 323 as a prelude to actual implementation.
The MPL may be used for: house repair; minor home improvement; home enhancement (purchase of appliance and furniture); tuition/educational expenses; health and wellness; livelihood; or other purposes.
A borrower must: (1) have made at least twenty-four (24) monthly mandatory savings; (2) for members who withdrew MS due to membership maturity, the reckoning of the updated 24 MS is the first MS following the month they qualified to withdraw due to membership maturity; and (3) have five (5) MS for the last six (6) months as of the month prior to the loan application.
If the borrower has an existing Housing Loan, the account must not be in default as of the application date. If with existing MPL and/or Calamity Loan, those account(s) must not be in default as of the application date.
The loan amount is based on the lowest of: desired loan amount, loan entitlement, and capacity-to-pay.
Up to 60% of Total Accumulated Value (TAV) for 24–59 months; up to 70% of TAV for 60–119 months; and up to 80% of TAV for at least 120 months.
It limits the loan to an amount such that statutory deductions, monthly repayment of principal and interest, and other obligations will not cause the borrower’s net take-home pay to fall below the minimum requirement under the General Appropriations Act (GAA) or company policy. Net take-home pay is computed as monthly compensation minus statutory deductions, other authorized deductions, outstanding loan obligations, and the computed monthly repayment for the loan applied for.
It is the difference between 80% of the borrower’s TAV and the outstanding balance of the Calamity Loan, provided it does not exceed the borrower’s MPL loan entitlement under the guidelines.
The interest rate is 10.75% per annum for the duration of the loan. The loan is repaid over a maximum period of 24 months, with a two (2)-month grace period.
Loan proceeds may be released through: crediting to the borrower’s cash card/disbursement card; crediting to the borrower’s bank account via LANDBANK’s PACSVAL; check payable to the borrower (with unclaimed checks mailed after three days from DV/check date); or other similar modes.
Amortizations are remitted on or before the 15th day of each month, starting on the third (3rd) month following the date on the DV/check. A penalty of one-half percent (0.5%) of any unpaid amount is charged for every month of delay.
Default occurs if: (1) the borrower makes any willful misrepresentation in documents executed for the loan; (2) the borrower fails to pay any three (3) consecutive monthly amortizations; (3) the borrower fails to pay any three (3) consecutive mandatory savings; or (4) the borrower violates any Pag-IBIG Fund policies/rules/regulations/guidelines.
In default, the outstanding loan becomes due and demandable. It is deducted from the borrower’s TAV and creates a lien on the borrower’s Pag-IBIG I and/or Pag-IBIG II and/or MP2 accounts, if applicable.
Payments are applied in this order: (1) penalties (if any); (2) interest; then (3) principal. Any amount paid in excess of the required monthly amortization is applied to future amortizations.
Yes. Circular No. 56-I provides that if full payment is made prior to loan maturity, the borrower may apply for a new loan any time.
An eligible member who is active under more than one employer may have only one outstanding MPL at any given time. At application, the member chooses which employer will deduct and remit the monthly MPL amortizations.
A borrower may renew after paying at least six (6) monthly amortizations and meeting eligibility criteria. The proceeds of the new loan are applied to the borrower’s outstanding MPL obligation, and the net proceeds are released to the borrower.