Pag-ibig offering “calamity loans”

After the Cebu City Council passed a resolution declaring Cebu City under a state of calamity following Typhoon Lando, the Pag- Ibig fund announced that they will be accepting calamity loans for those who are in need.

The calamity loan is provided for Pag-Ibig members in calamity- stricken areas.

Rio Teves, assistant manager for Operations in the Pag-Ibig Fund Cebu South Branch, said active Pag-Ibig members with at least 24 monthly contributions are qualified to avail of the loan program.

“The loanable amount is 80 percent of the Total Accumulated Value or the total savings of a member with the Fund as compared to the 60 percent loanable amount for Multi-Purpose Loan.  Interest rate for the said loan is 10.75 per cent similar to the MPL,” Teves said.

Teves said Pag-Ibig members with current MPL can avail of the calamity loan, however their outstanding loan balance will be deducted from the proceeds of the new loan.

“The loan is payable in 24 months through salary deduction for both government and private employees.”

Requirements for the loan are two copies of duly accomplished Calamity Loan Program application form, a barangay certification that the borrower is a resident of the calamity stricken-area, photocopies of two valid ID cards, a certificate of at least 12 months contributions, a certificate of latest 12 monthly payments for the previous MPL and or, latest payslip (for PNP employees) and latest payroll (for DepEd employees).

Due to the spate of calamities that hit the country last year, releases under the fund’s calamity loan program soared 258 percent to reach P4.55 billion which benefited a total of 297,888 members.  Pag-Ibig stands today as the biggest calamity loan provider in the country.

In the area of shelter finance, the fund approved an all-time high of P17.75 billion.  The amount helped finance the development of 40,241 shelter units during the past year.

For end-user and retail financing alone, the Pag-Ibig Fund lent out P16.09 billion, which made possible the construction or purchase of 32,939 housing units by 33,038 members.

The fund also released a total of P1.66 billion under its various Institutional Loan Programs, including the highly popular Medium and High Rise Building Program which generated 10,283 units for urban dwellers last year.

In the area of provident benefit claims, 127,538 members and other beneficiaries collectively withdrew about P4.06 billion in 2006.  The fund likewise released additional death benefits totaling P86.81 million to 15,911 legal heirs of deceased members.   — Jasmin R. Uy/BRP