Pag-Ibig offers new loan for unemployed members

STATE-RUN Home Development Mutual Fund (Pag-IBIG Fund) said it approved a new loan program for its out-of-work members to mitigate the impact of the global financial crisis.

Vice President Noli de Castro, concurrent chairman of the Housing and Urban Development Coordinating Council, said Pag-IBIG members whose employment contracts were terminated or whose employer closed shop, will be given financial assistance under a special short term loan program.

“This measure is part of our effort to mitigate the effects of the global financial crisis on our unemployed members,” the Vice President said.

Members must have at least 24 monthly contributions to avail themselves of the amount equi-valent to 50 percent of their total savings.

The loan is payable in three years, including a one-year grace period.

Unemployed members with an existing multipurpose loan can borrow up to 50 percent of their remaining savings since Pag-IBIG has already deducted the balance of their earlier loan from their outstanding contributions.

The fund has also condoned any incurred penalties.

Jaime Fabiana, Pag-IBIG officer in charge, said that members must submit an accomplished multipurpose loan application form and a notice of separation from employment/termination of services or a certification of retrenchment or lay-off.

“We will secure a list of companies that closed and a list of repatriated overseas Filipino workers from the Department of Labor and Employment to speed up the processing of applications,” he said.

Members who have been inactive for more than six months must update their membership record before filing their loan applications, Pag-IBIG said.

The borrowers’ loan proceeds will be credited to their account at the Land Bank of the Philippines’ payroll credit systems validation or the Philippine domestic dollar transfer system, and other similar modes of payment.

Proceeds may also be released through a check payable to the borrower.

The fund said members can pay at any Pag-IBIG Fund office or to any of its authorized collecting agents or banks.

Pag-Ibig Fund allocated P5.6 billion for the program for the first two months of the year, or a 20-percent increase from last year’s P4.7 billion.– Lailany P. Gomez, Manila Times