I. OBJECTIVES
The program aims to have all non-IISP branches where the new STL system under the Integrated Information Systems Project (IISP) is not yet operational become aligned with the specific provisions of Circular No. 323 as a prelude to actual implementation of the aforementioned guidelines.
II. LOAN PURPOSE
To provide financial assistance to Pag-IBIG member for:
III. BORROWER'S ELIGIBILITY
The program shall be open to a Pag-IBIG member who satisfies the following requirements:
IV. LOAN AMOUNT
A qualified Pag-IBIG member shall be allowed to borrow an amount based on the lowest of the following: desired loan amount, loan entitlement, capacity-to-pay.
1. Loan Entitlement
An eligible borrower’s loan entitlement shall depend on the number of contributions made, based on the following schedule:
No. of Mandatory Savings Loan Amount 24 – 59 Months Up to 60% of Total Accumulated Value (TAV) 60 – 119 Months Up to 70% of TAV At least 120 Months Up to 80% of TAV
2. Capacity to Pay
An eligible borrower’s loan shall be limited to an amount for which statutory deductions, monthly repayment of principal and interest, and other obligations will not render the borrower’s net take home pay to fall below the minimum requirement as prescribed by the General Appropriations Act (GAA) or company policy, whichever is applicable.
The member’s net take home pay shall refer to the member’s monthly compensation net of statutory deductions, other authorized deductions, outstanding loan obligations, and computed monthly repayment for loan being applied for. Statutory deductions shall refer to income tax withheld as well as contributions/premiums for GSIS/SSS, Pag-IBIG and PhilHealth.
However, if the borrower has an existing Calamity Loan, the loanable amount shall be the difference between 80% of the borrower's TAV and the outstanding balance of his Calamity Loan; provided, it does not exceed the borrower’s loan entitlement under these guidelines.
V. INTEREST RATE
The loan shall bear an interest at the rate of 10.75% per annum for the duration of the loan.
VI. LOAN TERM
The loan shall be repaid over a maximum period of twenty-four (24) months, with a grace period of two (2) months.
VII. LOAN RELEASE
The loan proceeds shall be released through any of the following modes:
3.1 | Checks which are unclaimed after three (3) days from the DV/check date shall be mailed to the member-borrower. |
VIII. LOAN PAYMENTS
4.1 | Suspension from work; |
4.2 | Leave of absence without pay; |
4.3 | Insufficiency of take home pay at any time during the term of the loan. |
IX. PENALTIES
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.
X. APPLICATION OF PAYMENTS
1.1 Penalties; if any,
XI. DEFAULT
The borrower shall be in default in any of the following cases:
XII. EFFECTS OF DEFAULT
In the event of default, the outstanding loan obligation shall become due and demandable. The outstanding obligation shall be deducted from the TAV credited to the borrower.
The same shall create a lien on the Pag-IBIG I and/or Pag-IBIG II and/or Modified Pag-IBIG II (MP2) account of the borrower, it any.
XIII. OTHER PROVISIONS
5.1 | An eligible member who is an active member under more than one employer shall have only one outstanding MPL at any given time. |
5.2 | At point of application, the member shall choose which employer shall deduct and remit his monthly MPL amortizations. |
6.1 | A borrower may renew his MPL after payment of at least six (6) monthly amortizations and he meets the eligibility criteria provided in these guidelines. |
6.2 | The proceeds of the new loan shall be applied to the borrower’s outstanding MPL obligation and the net proceeds shall then be released to him. |
6.3 | In case of full payment prior to loan maturity, a borrower shall be allowed to apply for a new loan any time. |
7.1 | Borrower’s unemployment; |
7.2 | Illness of the member-borrower or any of his immediate family members as certified by a licensed physician that, by reason thereof, resulted in his failure to pay the required amortizations when due; |
7.3 | Death of any of his immediate family members that, by reason thereof, resulted in his failure to pay the required amortizations when due. |
If TAV offsetting has been effected on the borrower's defaulting MPL, he may apply for a new MPL subject to the following conditions:
8.1 | If the borrower has paid at least 6 monthly amortizations prior to default and its consequent offsetting against the borrower's TAV, the borrower may immediately apply for a new loan, subject to the eligibility criteria provided in these guidelines; |
8.2 | If the borrower has paid less than 6 monthly amortizations prior to default and its consequent offsetting against the borrower’s TAV, the borrower may apply for a new loan only after two (2) years from date of TAV offsetting, subject to the eligibility criteria provided in these guidelines. |
XIV. ESCALATION OF ISSUES
Any issue in the interpretation and implementation of these guidelines shall be resolved by the Department Manager III concerned or shall be escalated to the next higher approving authorities.
XV. REPEALING CLAUSE
All previous Circulars or Memoranda in conflict or inconsistent with the provisions and/or purposes of this Circular are accordingly repealed, amended or modified.
XVI. AMENDMENTS
The Senior Management Committee may amend, modify or revise the provisions of these guidelines provided, the amendments, modifications and revisions thereof, are in furtherance of the objectives of this program and consistent with the mandate of the Fund under its charter and existing laws.
XVII. EFFECTIVITY
These guidelines shall take effect upon availability of the Short-Term Loan program for Non-IISP branches and until the new Short-Term Loan System under the Integrated Information Systems Project (IISP) is already operational in the branch.
(SGD.) ATTY. DARLENE MARIE B. BERBERABE
Chief Executive Officer