Pag-IBIG Fund
Corporate Headquarters
BDO Life MegaPlaza Bldg.,
358 Sen. Gil Puyat Avenue,
Makati City
470
Circular No.
TO: ALL CONCERNED
SUBJECT: ENHANCED GUIDELINES ON THE Pag-IBIG FUND CALAMITY
LOAN PROGRAM
Pursuant to the approval of the Pag-IBIG Fund Board of Trustees on 12 March 2025, the
following Enhanced Guidelines on the Pag-IBIG Fund Calamity Loan Program is
hereby issued:
1. COVERAGE
The Pag-IBIG Fund’s Calamity Loan Program shall be limited only to man-made
hazards and any of the following naturally-occurring disasters and hazards:
1.1. Typhoon
1.2. Storm Surge
1.3. Tornado
1.4. Landslide
1.5. Earthquake
1.6. Tsunami
1.7. Volcanic Eruption
1.8. El Nino and La Nina Phenomena
In case the calamity is not caused by the natural disasters or by geological processes,
the Fund shall conduct an internal assessment upon the approval of the Board, on
whether the Fund will open the program to cover the calamity.
2. LOAN PURPOSE
To provide financial assistance to Pag-IBIG member-victim in calamity-stricken areas,
as declared by the Office of the President or the Sangguniang Bayan.
3. DEFINITION OF TERMS
For purpose of implementing this program, the following terms shall be defined as
follows:
3.1 Active Local Member shall refer to a member with at least one (1) monthly
Membership Savings (MS) within the last six (6) months prior to loan application.
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3.2 Active Overseas Filipino Worker (OFW) Member shall refer to an OFW
member with at least one (1) monthly Membership Savings (MS) within the
last twelve (12) months prior to loan application.
3.3 Aggregate Short-Term Loan (STL) Amount shall refer to the total STL (MPL,
HELPs and Calamity Loan) amount a borrower can avail of from the Pag-IBIG
Fund.
3.4 Authorized Deductions shall refer to deductions from the salaries,
emoluments, or other benefits accruing to any government employee, as
expressly allowed under the General Appropriations Act (GAA), and other
applicable laws, rules, and regulations.
3.5 Desired Loan Amount shall refer to the amount indicated in the loan application
form.
3.6 Grace Period shall refer to the period in addition to the loan term, reckoned
from the Disbursement Voucher (DV) date of the Calamity Loan, during
which no penalty shall be imposed. This period is granted to provide the
member with reasonable time to prepare for and begin loan payments, in
consideration of fund release and payroll processing timelines.
3.7 Monthly Amortization shall refer to the installment amount to be paid by the
borrower which shall cover the principal and interest.
3.8 Net Take Home Pay (NTHP) shall refer to the member's monthly compensation
net of statutory deductions, computed monthly repayment of monthly
amortizations for loan applied for, and authorized deductions.
3.9 Outstanding Loan Obligation shall consist of the outstanding principal, interest,
and penalties, if any.
3.10 Short-Term Loan (STL) shall refer to loan programs offered by Pag-IBIG Fund
such as but not limited to: Pag-IBIG Multi-Purpose Loan (MPL), Pag-IBIG Health
and Education Loan Programs (HELPs), and Pag-IBIG Calamity Loan.
3.11 State of Calamity shall refer to a condition involving mass casualty and/or major
damages to property, disruption of means of livelihoods, roads and normal way
of life of people in the affected areas as a result of the occurrence of natural or
human-induced hazard.
3.12 Statutory Deductions shall refer to income tax withheld as well as
contributions/premiums for GSIS/SSS, Pag-IBIG Fund and PhilHealth.
3.13 Sufficient Proof of Income shall refer to any document that establishes the
existence of income from employment, self-employment, or other lawful
sources, as required by the Fund for loan evaluation and approval.
3.14 Total Accumulated Value (TAV) shall refer to the aggregate amount of a
Pag-IBIG Fund member’s mandatory Membership Savings (MS),
comprising the member’s monthly MS, any upgraded MS, the employer’s
counterpart contributions, if applicable, and the dividends credited
thereon.
3.15 Total Savings refers to the sum of the monthly MS, including the upgraded MS,
if such is the case, and the employer’s counterpart, if any.
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3.16 TAV Offsetting shall refer to the process of deducting from the member's TAV
the outstanding calamity loan obligation.
4. BORROWER’S ELIGIBILITY
The program shall be open to a Pag-IBIG member who satisfies the following
requirements:
4.1 Has made at least twelve (12) monthly membership savings;
4.1.1 A member who has withdrawn his MS due to membership maturity, or
through optional withdrawal, may apply for a calamity loan, provided
that the member has subsequently accumulated twelve (12) monthly
MS or at least its equivalent, reckoned from the cut-off date of
membership maturity or optional withdrawal.
4.1.2 A member who does not meet the required twelve (12) monthly MS may
nevertheless be allowed to avail of a calamity loan, provided that the
total accumulated savings is at least equivalent to twelve (12) monthly
MS, based the rate applicable to the member.
4.2 Is an active Pag-IBIG Fund member at time of loan application;
4.3 If with existing MPL/Calamity loan/HELPs, the account/s must not be in default
as of date of application;
4.4 Is a resident of the area which is declared calamity-stricken;
4.5 His/her place of work is declared under state of calamity, subject to the approval
of the Management; and
4.6 Submission of sufficient proof of income.
5. AVAILMENT PERIOD
The Pag-IBIG member-victim must avail himself of the Pag-IBIG Calamity Loan within
a period of ninety (90) days from the declaration of calamity.
6. LOAN AMOUNT
A qualified Pag-IBIG Fund member shall be allowed to borrow an amount based on
the lowest of the following: desired loan amount, loan entitlement, capacity-to-pay.
6.1. Desired Loan Amount
6.2. Loan Entitlement
6.2.1. Equivalent to ninety percent (90%) of the member’s TAV.
6.2.2. However, if the borrower has an existing MPL/Calamity Loan/HELPs, the
loanable amount shall be the difference between ninety percent (90%)
of the borrower’s TAV and the outstanding balance of his MPL/Calamity
Loan/HELPs.
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6.3. Capacity-to-Pay
The loanable amount shall be limited to an amount which will not render the
borrower’s Net Take Home Pay (NTHP) to fall below the minimum requirement
as prescribed by the General Appropriations Act (GAA) or company policy,
whichever is applicable.
7. INTEREST RATE
The loan shall be charged with an interest rate of 5.95% p.a., with interest during the
grace period and shall be amortized over the term of the loan. Any amendment to the
interest rate shall be set by the Interest Rate Setting Committee pursuant to the Fund's
Full Risk-Based Pricing Framework.
8. LOAN TERM
The loan shall be repaid over a period of one (1) year, two (2) years or three (3) years,
at the option of the member upon loan application, with a grace period of three (3)
months.
However, in the event that the borrower does not indicate the chosen loan term upon
loan application, the default term shall be two (2) years.
9. LOAN RELEASE
The loan proceeds shall be released through any of the following modes:
9.1. Crediting to the borrower’s disbursement card or Pag-IBIG Loyalty Card Plus;
9.2. Crediting to the borrower’s bank account through LANDBANK'S Payroll Credit
Systems Validation (PACSVAL);
9.3. Check payable to the borrower. However, when the check remains unclaimed
for a period of thirty (30) calendar days from the DV/Check date despite notice
to the borrower (either by email, registered mail or personal delivery to his postal
address, or Short Message Service (SMS)) informing him that the same is
available for release, the check shall be cancelled and the loan will be reversed.
9.4. Other acceptable modes of disbursement.
10. LOAN PAYMENTS
10.1. The loan shall be repaid in equal monthly payments in such amounts as may
fully cover the principal and interest over the loan period. Said amortization shall
be made, whenever feasible, through salary deduction.
10.2. For self-employed individuals, OFWs, or other types of individual payors,
monthly payments shall be paid over-the-counter or any other modes of
payment approved by the Fund.
10.3. Payments shall be remitted to the Pag-IBIG Fund on or before the fifteenth
(15th) day of each month, commencing on the fourth (4th) month from the
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date indicated on the Disbursement Voucher/Check or manual disbursement
voucher.
10.4. If the due date falls on a non-working day, the monthly amortization shall be
paid on the first working day after the due date.
10.5. The borrower may fully pay the outstanding balance of the loan prior to loan
maturity.
10.6.The borrower shall pay directly to the Pag-IBIG Fund in case the borrower is
unable to pay through salary deduction for any of the following circumstances,
such as but not limited to:
10.6.1. Suspension from work;
10.6.2. Leave of absence without pay;
10.6.3. Insufficiency of take home pay at any time during the term of the loan;
or
10.6.4. Other circumstances analogous to the foregoing.
11. PENALTIES
11.1 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.
11.2 For borrowers paying through salary deduction, penalties shall only be reversed
upon presentation of proof that non-payment was due to the fault of the employer.
In such case, penalties due from the borrower shall be charged to the employer.
Non-remittance of the total loan amortization shall likewise subject the employer
with a penalty of one-tenth of one percent (1/10 of 1%) per day of delay of the
amounts payable from the date the loan amortizations or payments fall due until
paid.
12. APPLICATION OF PAYMENTS
12.1 Payments shall be applied according to the following order of priorities:
12.1.1 Penalties; if any
12.1.2 Interest; and
12.1.3 Principal.
12.2 Any amount in excess of the required monthly amortization shall be applied to
succeeding amortizations which will be posted on the next due date.
13. DEFAULT
The borrower shall be in default in any of the following cases, without need for
demand:
13.1 Any willful misrepresentation made by the borrower in any of the documents
executed in relation hereto;
13.2 Failure of the borrower to pay any three (3) consecutive monthly amortizations;
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13.3 Failure of the borrower to pay any three (3) consecutive Pag-IBIG monthly
savings;
13.4 Violation by the borrower of any of the membership/STL/housing loan policies,
rules, regulations and guidelines of Pag-IBIG Fund.
14. EFFECTS OF DEFAULT
In the event of default, the outstanding loan obligation shall become due and
demandable. Without the need for demand, the Fund shall offset the
outstanding loan obligation from the borrower’s TAV.
15. OTHER PROVISIONS
15.1 The Calamity Loan, MPL and HELPs shall be treated as separate and distinct
from one another. Accordingly, a member may avail of calamity loan even
with an existing MPL/HELPs, and vice versa. Loan applications under these
programs shall be governed by their respective guidelines.
15.2 In no case shall the aggregate STL exceed 90% of the borrower's TAV.
15.3 Loan Renewal
Should another calamity occur in the same area, a borrower may renew his
calamity loan anytime. The outstanding loan balance of his existing calamity
loan, together with any accrued interest, penalties, and charges, if any, shall be
deducted from the proceeds of the new calamity loan.
15.4 Multiple Employers
15.4.1 An eligible member who is an active member under more than one
employer shall have only one outstanding calamity loan at any given
time.
15.4.2 At point of application, the member shall choose which employer shall
deduct and remit his monthly amortizations.
15.5 Membership Termination
15.5.1 In the event of membership termination prior to loan maturity, the
outstanding balance shall be deducted from the borrower's TAV, and/or
any amount due the member or the member’s beneficiaries that is
in the possession of the Fund.
15.5.2 In case of the borrower's death, the outstanding balance shall be
computed up to the date of death. Any payment received after date of
death shall be refunded to the borrower's beneficiaries.
15.6 Immediate Offsetting against Borrower’s TAV
A borrower may request for the immediate offsetting of an outstanding Calamity
Loan balance against the borrower’s TAV. The offsetting shall be effected upon
approval of the request, provided, that it is based on any of the following
justifiable reasons:
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15.6.1 Total disability or insanity;
15.6.2 Separation from service by reason of health;
15.6.3 Death of member’s immediate family member;
15.6.4 Distressed borrower due to unemployment limited to layoff and/or
closure of company;
15.6.5 Critical illness of the borrower or any immediate family member, as
certified by a licensed physician under any of the following categories,
subject to the approval of the Fund:
• Cancer
• Organ Failure
• Heart-Related Illness
• Stroke
• Neuromuscular-Related Illness
15.6.6 Repatriation of OFW borrower from host country; and
15.6.7 Other meritorious grounds as may be approved for by the Board.
A member whose TAV was offset due to any of the above justifiable reasons
may apply for a calamity loan at anytime, subject to eligibility requirements.
15.7 Availment of Calamity Loan After TAV Offsetting
If TAV offsetting has been effected on the borrower’s defaulting calamity loan,
he may apply for a new calamity loan subject to the following conditions:
15.7.1 If the borrower paid at least six (6) monthly amortizations prior to default
and its consequent offsetting against the borrower’s TAV, the member
may immediately apply for another loan, subject to the eligibility criteria
provided in this Guidelines.
15.7.2 If the borrower has paid less than six (6) monthly amortizations prior to
default and its consequent offsetting against the borrower’s TAV, the
member may apply for a new loan only after one (1) year from date of
TAV offsetting, subject to the eligibility criteria provided in this Guidelines.
However, if the TAV offsetting was made due to any justifiable reason as
provided under this Guidelines, the member may immediately apply for a
new loan, subject to the eligibility requirements.
16.AMENDMENTS
Amendments to this Guidelines shall be approved by the Senior Management
Committee pursuant to the authority bestowed on it by the Fund’s Board of Trustees
to formulate and issue guidelines and procedures in furtherance of the objectives of
this program consistent with the mandate of the Fund under its Charter and existing
laws.
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17. MECHANISM ON RESOLUTION OF ISSUES
Any issue in the interpretation and implementation of this Guidelines shall, as much
as possible, be resolved by the concerned officer. Matters that are not thereby
satisfactorily resolved shall be escalated to the next higher approving authority.
18. REPEALING CLAUSE
Pag-IBIG Fund Circular No. 449 and all other memoranda, rules, regulations, and
other issuances contrary to or inconsistent with the provisions of this Guidelines are
hereby repealed, amended, or modified accordingly.
19. EFFECTIVITY
This Circular takes effect after fifteen (15) calendar days following the completion of
its publication in the Official Gazette or in a newspaper of general circulation.
MARLENE C. ACOSTA
✓Chief Executive Officer
Makati City,
30 April 2025
