what is pag-ibig fund?
DESCRIPTION
What is Pag-IBIG FUND?. Pag – tutulungan sa Kinabukasan. I – Ikaw. B – Bangko. I – Industriya. G – Gobyerno. What is Republic Act 9679?. An Act further strengthening the Home Development Mutual Fund, and for other purposes - PowerPoint PPT PresentationTRANSCRIPT
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What is Pag-IBIG FUND?
Pag– tutulungan sa KinabukasanI – IkawB – BangkoI – IndustriyaG – Gobyerno
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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
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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
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MEMBERSHIP PROGRAMMandatory Coverage and Membership of
Employees
1. All employees compulsorily covered by the SSS
2. All employees subject to mandatory coverage by the GSIS
3. 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 Police
4. Filipinos employed by foreign-based employers
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MEMBERSHIP PROGRAMMandatory Coverage of Employers
1. Employers of employees compulsorily covered by the SSS
2. 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
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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
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MEMBERSHIP PROGRAMVoluntary Coverage
4. Leaders and members of religious groups
5. 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 officials
7. Other earning groups as may be determined by the Board
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SALIENT FEATURES OF THE SAVINGS PROGRAM Doubles/triples your money
Annual dividend earning
Portability of Savings
Return of Contributions
Government-guaranteed contributions
Tax-Free
Availment of loan programs (long and short-term)
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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.
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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
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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
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MULTI-PURPOSE LOAN (MPL) PROGRAMShort-term financial which can be availed by
Pag-IBIGmembers for any of the following:
a) minor home improvementb) livelihoodc) medicald) educationale) purchase of appliance and furniture f) other needs
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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
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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)
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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 members
2. Over-the-counter at Pag-IBIG Branches, for voluntary members
LOAN PAYMENT
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PIOG SATELLITE OFFICE
Asia-Pacific Europe Middle East
1. 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
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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 RENEWAL
Payment of at least six (6) amortizations
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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.
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CALAMITY LOAN PROGRAM
80% of member’s total contributions
Resident of a declared calamity-stricken area 10.75% interest rate
payable in 2 years
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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.
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* Dividend Rate is 6%
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Highest Loan to Collateral Ratio
Lowest Interest Rate
Longest Loan Term
HOME LENDING PROGRAMS
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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
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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.
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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
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MONTHLY CONTRIBUTION
LOAN ENTITLEMENT (Effective April, 2009)
MONTHLY CONTRIBUTION
LOAN ENTITLEMENT (Effective April, 2009)
200 500T 850 1.7M - 1.8M
250 500T - 600T 900 1.8M - 1.9M
300 600T - 700T 950 1.9M - 2.0M
350 700T - 800T 1,000 2.0M - 2.1M
400 800T - 900T 1,050 2.1M - 2.2M
450 900T - 1.0M 1,100 2.2M - 2.3M
500 1.0M - 1.1M 1,150 2.3M - 2.4M
550 1.1M - 1.2M 1,200 2.4M - 2.5M
600 1.2M - 1.3M 1,250 2.5M - 2.6M
650 1.3M - 1.4M 1,300 2.6M - 2.7M
700 1.4M - 1.5M 1,350 2.7M - 2.8M
750 1.5M - 1.6M 1,400 2.8M - 2.9M
800 1.6M - 1.7M 1,450 2.9M - 3.0M
LOAN ENTITLEMENT BASED ON CONTRIBUTION
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SAMPLE COMPUTATIONSAMPLE COMPUTATIONSAMPLE COMPUTATIONSAMPLE COMPUTATION
LOANINTERES
TMONTHLY
REQUIRED NDI
PACKAGE RATEAMORTIZATIO
N(Amort / 40%)
P400K 6% P2,398.20 P5,995.51
P750K 7% P4,989.77 P12,474.42
P1.0M 8.5% P7,689.13 P19,222.84
P1.5M 10.5% P13,721.09 P34,302.72
P2.0M 10.5% P18,294.79 P45,736.96
P2.5M 11.5% P24,757.29 P61,893.21
P3.0M 11.5% P29,708.74 P74,271.86
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LOAN TERM
Loan Amount Term
Up to P3M Up to 30 yrs
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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
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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 317Sen. Gil Puyat Avenue
Makati City
Tel Nos. 812-4731 loc. 110892-4382 / 894-2195Fax No: 893-8874
Website: www.pagibigfund.gov.ph