Question & AnswerQ&A (HDMF CIRCULAR NO. 56-I)
The program aims to align all non-IISP branches where the new STL system is not operational with Circular No. 323 provisions as a prelude to actual implementation.
A Pag-IBIG member who has made at least 24 monthly mandatory savings, has 5 contributions in the last 6 months, and whose existing Pag-IBIG Housing Loan, MPL, or Calamity Loan accounts are not in default.
The loan can be used for house repair, minor home improvements, home enhancement, tuition/educational expenses, health and wellness, livelihood, or other purposes.
The loan amount is based on the lowest of the desired loan amount, loan entitlement, and capacity to pay.
The loan bears an interest rate of 10.75% per annum for the duration of the loan.
The loan shall be repaid over a maximum period of 24 months with a 2-month grace period.
A penalty of 0.5% of any unpaid amount is charged for every month of delay. For employers that fail to remit salary deductions, a penalty of 0.1% per day of delay is imposed.
The outstanding loan obligation becomes due and demandable, and the amount is deducted from the borrower's Total Accumulated Value (TAV), creating a lien on the borrower's Pag-IBIG accounts.
No, a member who is active under multiple employers may have only one outstanding MPL at any given time and must choose which employer will deduct and remit.
A borrower may renew the MPL after paying at least 6 monthly amortizations and meeting eligibility criteria. The new loan proceeds are applied to the outstanding obligation, and net proceeds are released.
Willful misrepresentation, failure to pay three consecutive monthly amortizations, failure to pay three consecutive mandatory savings, or violation of Pag-IBIG policies and guidelines.
Payments are applied first to penalties, then interest, and then to principal. Any excess payment is applied to future amortizations.
Loan proceeds may be released via Pag-IBIG cash/disbursement card, credited to the borrower's bank account through LANDBANK's PACSVAL, check payable to the borrower, or other similar modes.
The outstanding loan obligation will be deducted from the borrower's TAV or any amount due him or his beneficiaries in possession of the Fund.