Binay urges Pinoys abroad to avail selves of Pag-IBIG overseas program

Vice President and Housing and Urban Development Coordinating Council Chairman Jejomar Binay urged overseas Filipino workers (OFWs), immigrants and naturalized citizens to avail themselves of the Pag-IBIG Overseas Program.

He also reminded OFWs that Pag-IBIG membership is mandatory for Filipinos employed by foreign-based employers, whether they are deployed locally or abroad, under Republic Act 9679.

The Vice President also said that under the said law, members may only withdraw their contributions upon maturity after 20 years and after making 240 contributions, or under any of the other valid grounds for withdrawal. These include retirement, separation from service due to health reasons, permanent departure from the country, permanent disability or insanity, and death.

For Filipino immigrants and naturalized citizens, Binay said they can avail of the Pag-IBIG Overseas Program which is a voluntary Savings Program aimed to give members the chance to set aside money for their future housing investments.

The Pag-IBIG Overseas Program, also called the Modified Pag-IBIG II program, is solely a savings scheme designed to provide overseas Pag-IBIG members with another savings option that would grant them with a higher yield higher than those given under the Pag-IBIG I membership program covered by RA 9679. The program took effect on Feb. 3, 2010.

Those who will avail of the program is required to make a minimum contribution of P500 per month with a renewable term of five years.

It offers flexible dividend rates and government guaranteed positive gains on the investment money.

Pag-IBIG is a P300-billion private fund, held in trust by government, offering the most attractive terms for savings, multi-purpose and housing loans. One could invest as low as P500 a month, without any ceiling, and earn 4.5 percent to 5 percent tax-free interest upon maturity of the investment after five years.

Members could borrow the equivalent of 80 percent of their total savings for emergency purposes, or take out a housing loan of up to P3 million each.

Pag-IBIG has 9 million members, including one million Overseas Filipino Workers. Yearly, the Fund extends P36 billion in multi-purpose loans to some 3 million members, while some 300 families take out housing loans every day of the year. After Typhoon “Ondoy,” Pag-IBIG granted P14 billion in calamity loans to 700,000 members. Last year, it granted P40 billion in housing loans.

Vice President Binay went to the United States to learn more about housing finance at the Wharton School, University of Pennsylvania.

Binay, along with top officials of the key shelter agencies, studied under the International Housing Finance Program (IHFP) on “Housing Finance in a Changing Global Environment” from June 6 to 16. –Daily Tribune