PAG- IBIG

BY: JESSA ANNE R. BORREBSN-III

What is Pag-IBIG FUND?

Pag– tutulungan sa KinabukasanI – IkawB – BangkoI – IndustriyaG – Gobyerno

What is Republic Act 9679?• An Act further strengthening the Home Development

Mutual Fund, and for other purposes• Was approved into law by Pres. Gloria Macapagal-

Arroyo on 21 July 2009• Increased the scope of power and function of the

Fund through the Board of Trustees who are appointed by the President of the Philippines

• Provided for the tax exemption status of the Fund• Increased scope of mandatory membership coverage

of the Fund

CORPORATE PROGRAMS1. Membership Program

2. Provident Savings Program

4. Lending Programs 4.1. Multi-Purpose Loan 4.2. Calamity Loan 4.3. Home Lending

4.4.1. Retail 4.4.2. Institutional/Wholesale

3. Modified Pag-IBIG II Program

MEMBERSHIP PROGRAMMandatory Coverage and Membership of

Employees1. All employees compulsorily covered by the SSS2. All employees subject to mandatory coverage by the GSIS3. Uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police4. Filipinos employed by foreign-based employers

MEMBERSHIP PROGRAMMandatory Coverage of Employers

1. Employers of employees compulsorily covered by the SSS2. Employers of employees subject of mandatory coverage by the GSIS 3. The Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police

MEMBERSHIP PROGRAMVoluntary Coverage

1. Spouses who devote full time to managing household and family

affairs; 2. Filipino employees of foreign government or

international organization, or their wholly-owned instrumentality

based in the Philippines 3. Employees of an employer who is granted a waiver or

suspension of coverage by the Fund under RA 9679

MEMBERSHIP PROGRAMVoluntary Coverage

4. Leaders and members of religious groups5. A member separated from employment, local or abroad, or ceased to be employed, but would like to continue paying Pag-IBIG contributions 6. Public officials or employees who are not covered by the GSIS such as barangay officials7. Other earning groups as may be determined by the Board

SALIENT FEATURES OF THE SAVINGS PROGRAM Doubles/triples your money Annual dividend earning Portability of Savings Return of Contributions Government-guaranteed contributionsTax-Free Availment of loan programs (long and short-term)

EXISTING CONTRIBUTION RATES(since 1986)

Monthly Compensation Contribution Rates EE ER

P1,500 or less 1% 2% More than 1,500 2% 2%

Maximum monthly compensation = P5,000.00A member may be allowed to contribute more than what is required should he or she desire. The employer, however, shall only be mandated to contribute what is required unless he or she agrees to match the member’s increased contribution.

GROUNDS FOR WITHDRAWAL OF SAVINGSUpon the occurrence of any of the following contingencies, Pag-IBIG Fund guarantees the refund of a members’ accumulated savings, which consist of the member’s accumulated contributions, the employer counterpart contributions (if any) and the dividend earnings credited to the member’s account:

Retirement (ages 45, 60, and 65) Death Permanent and total disability or insanity Permanent departure from the country Separation from the service due to health reason

GROUNDS FOR WITHDRAWAL OF SAVINGS Membership Maturity (20 years or 240 months of

continuous contribution) Optional Withdrawal Other causes as may be approved by the Board

MULTI-PURPOSE LOAN (MPL) PROGRAMShort-term financial which can be availed by

Pag-IBIGmembers for any of the following: a) minor home improvement

b) livelihoodc) medicald) educationale) purchase of appliance and furniture f) other needs

LOAN AMOUNTAn eligible borrower's loan entitlement shall depend on the number of contributions made, based on the following schedule:

No. of Contributions Loan Amount

24-59 months Up to 60% of TAV

60-119 months Up to 70% of TAV

At Least 120 months Up to 80% of TAV

INTEREST RATE10.75% per annum for the duration of the loan.LOAN TERMMaximum period of twenty-four (24) months with grace period of 2 months for local accounts and 5 months for centralized accounts.

LOAN RELEASE Check LBP Account LBP Cash Card (in the pipeline) Citibank Cash Card (in the pipeline)

3. Auto-debit arrangements with banks 4. Collecting Agents (IRemit, Ventaja, Philippine

National Bank, Asian United Bank, and Metro Bank)

5. Pag-IBIG Posts (in selected Middle East countries)

1. Salary deduction for employed members2. Over-the-counter at Pag-IBIG Branches, for

voluntary members

LOAN PAYMENT

PIOG SATELLITE OFFICEAsia-Pacific Europe Middle East1. Singapore 6. Rome 11. Abu Dhabi

2. Hongkong 7. Milan 12. Dubai 3. Brunei 8. Athens 13. Kuwait 4. Taiwan 9. Madrid 14. Qatar5. Korea 10. London 15. Riyadh

16. Jeddah17. Alkhobar 18. Bahrain

PENALTY RATE ½% of any unpaid amount for every month of delay. For borrowers paying their loans through automatic salary deduction, penalties shall be cancelled/reversed only upon presentation of proof that non-payment was due to the fault of the employer. The said penalties shall then be charged against the employer.

LOAN RENEWALPayment of at least six (6) amortizations

Borrower’s Eligibility Member must have made at least 24 monthly

contributions With active Fund membership at the time of

application with the commitment from both the employee and employer to continuously remit contributions at least for the term of the loan.

CALAMITY LOAN PROGRAM 80% of member’s total contributions Resident of a declared calamity-stricken area 10.75% interest rate payable in 2 years

WHAT IS THE MODIFIED PAG-IBIG II PROGRAM?

A voluntary savings program for Pag-IBIG members Open to all Pag-IBIG I members and OFWs with a Monthly gross income exceeding Php5,000.00 Rate of contribution : Php500.00 Term : five (5) years Savings are entitled to a preferential dividend rate Higher than that of Pag-IBIG I.

* Dividend Rate is 6%

Highest Loan to Collateral Ratio

Lowest Interest Rate

Longest Loan Term

HOME LENDING PROGRAMS

LOAN PURPOSEThe Pag-IBIG housing loan may be used to finance any of the following:

Purchase of a fully developed lot

Purchase of a residential house and lot, townhouse or

condominium unit;

Construction or completion of a residential unit on a

lot owned by the member;

Home improvement;

Refinancing of an existing loan; and

Combination of loan purposes

BORROWER’S ELIGIBILITY Must be a Pag-IBIG member for at least 24 months Not more than 70 years old at loan maturity and must be insurable Has the legal capacity to acquire and encumber real property Has passed satisfactory background/credit and employment business checks of the developer and Pag-IBIG Fund Has no outstanding Pag-IBIG loan, either as principal borrower or co- borrower Had no Pag-IBIG housing loan that was foreclosed, cancelled, bought back or subjected to Dacion En Pago Has no outstanding Pag-IBIG Multi - Purpose Loan in arrears at the time of loan application.

1. capacity to pay (40% of NDI*)

2. Actual need

3. Loan-to-collateral Ratio

4. Contribution* Net Disposable Income

Maximum of P3M, which shall be based on the lowest of the following:

LOAN AMOUNT

1M

2M

3M

MONTHLY CONTRIBUTION

LOAN ENTITLEMENT (Effective April, 2009)

MONTHLY CONTRIBUTION

LOAN ENTITLEMENT (Effective April, 2009)

200 500T 850 1.7M - 1.8M250 500T - 600T 900 1.8M - 1.9M300 600T - 700T 950 1.9M - 2.0M350 700T - 800T 1,000 2.0M - 2.1M400 800T - 900T 1,050 2.1M - 2.2M450 900T - 1.0M 1,100 2.2M - 2.3M500 1.0M - 1.1M 1,150 2.3M - 2.4M550 1.1M - 1.2M 1,200 2.4M - 2.5M600 1.2M - 1.3M 1,250 2.5M - 2.6M650 1.3M - 1.4M 1,300 2.6M - 2.7M700 1.4M - 1.5M 1,350 2.7M - 2.8M750 1.5M - 1.6M 1,400 2.8M - 2.9M800 1.6M - 1.7M 1,450 2.9M - 3.0M

LOAN ENTITLEMENT BASED ON CONTRIBUTION

SAMPLE COMPUTATIONSAMPLE COMPUTATIONLOAN INTERES

T MONTHLY REQUIRED NDI

PACKAGE RATE AMORTIZATION (Amort / 40%)

P400K 6% P2,398.20 P5,995.51P750K 7% P4,989.77 P12,474.42P1.0M 8.5% P7,689.13 P19,222.84P1.5M 10.5% P13,721.09 P34,302.72P2.0M 10.5% P18,294.79 P45,736.96P2.5M 11.5% P24,757.29 P61,893.21P3.0M 11.5% P29,708.74 P74,271.86

LOAN TERM

  Loan Amount Term Up to P3M Up to 30 yrs

HOUSING LOAN APPLICATION PROCESS

1. SUBMIT COMPLETEAPPLICATION DOCUMENTS

2. CLAIM NOA/LOG(Notice of Approval/Letter of Guaranty)

3. SUBMIT DOCUMENTS FOR CHECK PROCESSING

4. LOAN RELEASE/TAKE-OUT 5. PAY THE MONTHLYAMORTIZATION

THANK YOU!Our Contact Details:

Servicing DepartmentJELP Business Solutions Center

409 Shaw BoulevardMandaluyong City

Tel Nos. 724-4244 (PAGIBIG) 654-7230/654-9179

* * * * * * * * * * * * * * * * * * * * * * * *6th Floor Justine Bldg. No 317

Sen. Gil Puyat Avenue Makati City

Tel Nos. 812-4731 loc. 110892-4382 / 894-2195Fax No: 893-8874

Website: www.pagibigfund.gov.ph