In the Philippines, there’s a popular saying “ang buhay ay weather weather lang (life is like a weather)”. Life can experience drastic change anytime and anywhere without a warning. Nobody wants to get hit by a calamity, whether it’s a typhoon, earthquake or any other unfortunate event in our place and time. But Mother Earth is often unpredictable. And even with our preparations, a disaster can still cause damages in our properties and lives.
Once we got hit by a calamity, whether we are a business owner or a pure employee, we have to raise fund for relief and rehabilitation. If you’re Pag-IBIG member, you may be eligible to avail of their Calamity Loan Program. Although a Calamity Loan is a form of debt, you may consider it as a good option to raise money since it has a very low interest rate compare with other forms of borrowing.
The following are important information you should know about getting a calamity loan at Pag-IBIG Fund or HDMF (Home Development Mutual Fund) Office:
Who are eligible?
If you are a Pag-IBIG Fund member who satisfies the following requirements, you may apply for the Calamity Loan program.
1. Has made at least 24 monthly contributions.
2. Has made five (5) monthly contributions for the last six (6) months as of month prior to date of loan application and commits to continuously remit contributions at least for the term of the loan.
3. Resides in an area which is declared by the Office of the President or the Local Sanggunian concerned as under a state of calamity. If the member has an existing Housing Loan, Multi-Purpose Loan (MPL) and/or Calamity Loan, the account must not be in default as of date of loan application.
How much can you loan?
If you satisfies the requirements above, you can borrow up to a maximum of 80% of your Total Accumulated Value (TAV) subject to the terms and conditions of the program. The current interest rate for the Calamity Loan is 5.95% per annum.
Until when can you apply for the loan?
You can avail the loan within a period of ninety (90) days from the declaration of the calamity.
What is the payment period for the loan?
The Calamity Loan is amortized over a period of 24 months with a grace period of 3 months. The borrowing member shall start paying his or her loan on the 4th month following the date of his Disbursement Voucher or Check date.
Can you still avail of a Calamity Loan even if you have an outstanding MPL/Calamity Loan?
According to Pag-IBIG, you can still avail of a Calamity Loan subject to certain conditions. However, your aggregate short-term loan (Multi-Purpose Loan and Calamity Loan) should never exceed 80% of your Total Accumulated Value (TAV).
If, in addition to an outstanding MPL, the member also has an outstanding calamity loan in the amount of P2,000, in the example above, the member is still granted a new calamity loan of P3,000 but will only receive P1,000 because the P2,000 will pay off the existing calamity loan balance. This means that at any given time, a member can have both MPL and calamity loan, but only one calamity loan. http://www.pagibigfund.gov.ph/benprocalamity.aspx
What are the documentary requirements for the loan application?
- Calamity Loan Application Form (you can download the form here)
- Photocopy of at least 2 valid IDs
- Proof of Income
- For formally employed members, duly accomplished Declaration of Being Affected by Calamity
How to Apply for a Calamity Loan
The following are the steps for applying a Calamity Loan with the Pag-IBIG Fund:
1. Fill out and accomplish 1 copy of the Calamity Loan Application Form that you can get from the Pag-IBIG Fund Office/branch or download from their website.
2. Attach photocopy of payroll account/disbursement card/deposit slip (for newly-opened
3. Submit complete application, together with the required documents to any Pag-IBIG Fund
NCR/Regional branch. Take note that the processing of your loan will only commence upon submission of complete documents.
If you already have an experience getting a calamity loan from the Pag-IBIG Fund, we’ll be happy to hear your share of story to us!
I’m looking forward for our recovery and hoping to have a business, work and life that is not only as usual, but even a better one.