Question & AnswerQ&A (HDMF CIRCULAR NO. 332)
The objective is to provide additional benefits to members by extending financial assistance for educational and health-related expenses of the member and/or their beneficiaries, and to extend goodwill to members.
All Pag-IBIG I members are covered under these guidelines.
An Active Member is a member who has at least five (5) monthly mandatory savings within the last six (6) months prior to the date of application.
Actual Need refers to educational or medical expenses, or cost of a healthcare plan to be incurred by the borrower or beneficiary net of any financial aid, grant, or discount.
A Beneficiary is a person who shall benefit from the loan proceeds that will be used to pay for products and services offered by educational or medical institutions, or HMOs under the program.
The borrower must be a Pag-IBIG member with at least 24 monthly mandatory savings, must be active at time of application, must have updated Pag-IBIG Housing Loan account if applicable, and updated MPL and/or Calamity Loan accounts if applicable.
The loan amount is the lowest of the following: 90% of Total Accumulated Value (TAV) less any outstanding MPL/Calamity loan, capacity to pay without reducing net take home pay below minimum requirement, actual need, or desired loan amount.
The loan shall be repaid over six (6) or twelve (12) months at the borrower's option, with a two (2) months grace period.
A penalty of one-twentieth of one percent (1/20 of 1%) of any unpaid amount is charged per day of delay. For salary deduction borrowers, penalties due to employer's fault are charged to the employer, who is also liable for an additional penalty of one-tenth of one percent (1/10 of 1%) per day for non-remittance.
Defaults include willful misrepresentation in documents, failure to pay three (3) consecutive EMIs or monthly savings, default in outstanding MPL or Calamity Loan, and violation of Pag-IBIG policies, rules, and guidelines.
The loan becomes due and demandable, and outstanding obligations from MPL/Calamity loans also become due. These may be deducted from the borrower's Total Accumulated Value after collection efforts fail.
Yes, up to three (3) qualified Pag-IBIG members may apply for separate loans to benefit a single beneficiary.
For educational expenses, an original assessment form from the institution is required. For medical expenses, a statement of account or hospital bill net of PhilHealth and discounts is needed. For maintenance medication, a prescription and quotation are required. For healthcare plans, an assessment form from an accredited HMO is required.
Loans with six-month terms may be renewed after at least four (4) EMIs paid; twelve-month term loans after eight (8) EMIs paid. The new loan proceeds first apply to outstanding obligations, with net proceeds released to the partner-merchant.
Payments are first applied to penalties, then interest, and finally to principal. Excess payments are applied to future amortizations.