QuestionsQuestions (EXECUTIVE ORDER NO. 209)
It is a Pag-IBIG Fund loan program (Pag-IBIG HELPs) intended to provide additional benefits to members by extending financial assistance for educational and health-related expenses of the member and/or beneficiaries, and to extend goodwill to members.
All Pag-IBIG I members.
The member must have at least 24 monthly mandatory savings (MS), be an active member at the time of application (with at least five MS within the last six months), and if applicable, have the housing loan account updated, and have existing MPL and/or Calamity Loan accounts updated as of the date of application.
An Active Member is one who has at least five (5) monthly mandatory savings within the last six (6) months prior to the date of application.
Educational expenses, medical expenses, and/or healthcare plan from HMOs accredited by the Fund.
Actual Need refers to educational or medical expenses, or the cost of a healthcare plan, to be incurred by the borrower/beneficiary net of financial aid/grants or discounts. It is one of the possible caps used to determine the maximum loan amount (the loan is limited to the lowest of the enumerated amounts, including Actual Need).
The qualified borrower is entitled to the lowest of: (1) Loan Entitlement = 90% of TAV less outstanding balance on MPL and/or Calamity Loan, if any; (2) Capacity to Pay limit; (3) Actual Need; or (4) Desired Loan Amount.
TAV is the sum of the mandatory member’s savings plus the employer’s counterpart (when appropriate) and the corresponding dividends credited thereto. Under Loan Entitlement, it is used as: 90% of TAV less outstanding MPL and/or Calamity Loan balance, if any.
Capacity to Pay means the loan amount is limited so that statutory deductions, monthly principal and interest repayment, and other obligations will not reduce the borrower’s net take-home pay below the minimum requirement prescribed by the General Appropriations Act (GAA) or company policy, whichever applies.
Interest is charged based on the full risk-based pricing framework, a model covering base rate, cost of servicing and administering, reasonable margin, expected loss, and use of capital.
The loan may be repaid over either six (6) months or twelve (12) months at the option of the borrower, with a two (2) months grace period.
Loan proceeds are released through a check payable to the Partner-Merchant for the account of the beneficiary. If the provider is not a Partner-Merchant, the check is payable to the borrower.
Payments are in equal monthly installments, whenever feasible through salary deduction. If not feasible, payments may be made via Over-the-Counter, through accredited collection partners, or other approved modes. Promissory Note/Agreement number must be indicated in the remittance form/PFR. Remittance to Pag-IBIG Fund must be on or before the 15th day of the third month following the DV/check date.
Default includes: (1) any willful misrepresentation in documents; (2) failure to pay any three consecutive EMIs; (3) failure to pay any three consecutive MS; (4) default in an outstanding Pag-IBIG MPL and/or Calamity Loan; or (5) violation of Pag-IBIG Fund policies/rules/guidelines.
Upon default, the outstanding Pag-IBIG HELPs obligation becomes due and demandable, and outstanding MPL/Calamity obligations also become due and demandable. These obligations may be deducted from the borrower’s TAV after collection efforts prove unsuccessful.
A penalty of 1/20 of 1% of any unpaid amount is charged per day of delay. If payments are through salary deduction, and non-payment is due to the employer’s fault (supported by proof), penalties due from the borrower may be charged to the employer. Non-remittance of total amortization subjects the employer to an additional penalty of 1/10 of 1% per day of delay until paid.
Payments are applied in order of priorities: penalties (if any), then interest, then principal. Any amount in excess of the required EMI is applied to future amortization when due.
Educational expenses require an assessment form/equivalent in original copy from the educational institution; medical expenses require statement of account/hospital bill net of PhilHealth and discounts; maintenance medication requires a quotation from the company/drug store and a prescription issued by the physician; healthcare plan from accredited HMO requires an assessment form from the accredited HMO.