Q&A: How to Apply for a Pag-IBIG Calamity Loan?

Preparing for typhoons goes beyond reinforcing your home; it is also important to know how you can prepare financially in the aftermath of such calamity

As much as the Philippines is associated with warm weather, it is similarly associated with its susceptibility to typhoons. This is expected of a tropical country, and for the most part, Filipinos have found ways to adapt to the rainy season. Unfortunately, some typhoons are quite unforgiving, and basic rain-proofing only goes so far in preventing possible damage to property.

While the hope is that another Typhoon Yolanda (International name: Haiyan) does not occur anytime soon, the events surrounding this particularly powerful typhoon (in fact, the strongest storm recorded to make landfall) constantly remind homeowners of how destructive storms can be to property. Luckily, there are financing options available to homeowners in the event where a typhoon damages their home. One of these is the Home Development Mutual Fund’s (Pag-IBIG Fund) Calamity Loan program.

What is a Pag-IBIG Calamity Loan?

Section 16 of Republic Act 10121 gives the President of the Philippines or Local Government Units the power to declare an area to be in a State of Calamity. This is done based on the recommendation of the National Disaster Risk Reduction Management Council (NDRRMC), or for LGUs the Local Disaster Risk Reduction Management Council (LDRRMC).

Flooded Philippine street How to Apply for a Pag-IBIG Calamity Loan
The end of the typhoon is not the end of the calamity. Photo via Shutterstock

Once under a State of Calamity, citizens of that area are granted the opportunity to apply for a loan from the government, which includes Pag-IBIG Fund’s Calamity Loans. These are offered to Pag-IBIG Fund members whose property has been affected by unforeseen calamities like a flood, fire, volcanic eruption, tropical cyclones or typhoons, and other similar instances.

Eligible Pag-IBIG members can borrow up to a maximum of 80 percent of their Total Accumulated Value (TAV), which is the total of the monthly contributions made at the time of the Calamity Loan application, and is subject to the terms and conditions of the program.

Who is Eligible for a Pag-IBIG Calamity Loan?

The calamity loan program is open to any Pag-IBIG member who meets the following criteria:

  • Has completed at least 24 monthly Pag-IBIG payments
  • Is an active member that, within the last 6 months prior to the calamity loan application, has made at least 5 monthly Pag-IBIG payments
  • Resides in an area that has been declared to be in a State of Calamity

Pag-IBIG Fund How to Apply for a Pag-IBIG Calamity Loan
Image courtesy of Pag-IBIG Fund

What Are the Pag-IBIG Calamity Loan Requirements?

Eligible Pag-IBIG Fund members whose homes have been greatly affected by a typhoon should file for a calamity loan no later than 90 days after their area had been declared to be in a State of Calamity. To complete the application, borrowers must submit the following requirements:

  • Pag-IBIG Calamity Loan Form (this is readily available for download from the Pag-IBIG website, or can be secured at no cost from any Pag-IBIG branch)
  • Photocopy of at least two valid IDs
  • Proof of income
  • Duly accomplished Declaration of Being Affected by Calamity (for members who are formally employed)

In the event that members are past the mandatory 90-day period from the time their area was declared to be in a State of Calamity, they can opt to apply for Pag-IBIG Fund’s Multi-Purpose Loan (MPL). As its name implies, MPLs may be used for different purposes, including repairing the damage caused by a typhoon. However, this loan has a slightly higher interest rate than the Calamity Loan.

Loan application How to Apply for a Pag-IBIG Calamity Loan
Photo via Shutterstock

Other Things to Consider

Pag-IBIG Fund members should keep in mind that having an existing Pag-IBIG Housing Loan does not disqualify them from being eligible for the Calamity Loan. However, their existing loans must not be in default.

However, if one of the existing loans happens to be a Calamity Loan, proceeds from the new calamity loan will first be used to pay off the remainder of the previous one. For example, if a member already has an outstanding Calamity Loan of Php8,000, and is granted a new Calamity Loan of Php40,000, he or she will only receive Php32,000. In addition, the total amount of the short-term loans (MPL and Calamity Loan) must not exceed 80 percent of the member’s TAV.

As of June 2016, Pag-IBIG Calamity Loans are charged at an interest rate of 5.95 percent per annum, and this is amortized over a period of 24 months with a grace period of 3 months. Payment of the monthly amortization begins on the fourth month following the date of the Calamity Loan check is issued.

Main image via Shutterstock


For a comprehensive guide on the rules, regulations, and functions of the Home Development Mutual Fund, as well as additional articles related to the HDMF, visit the Lamudi Pag-IBIG Fund page.


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