I. Introduction

The Pag-IBIG Calamity Loan is a financial assistance program established by the Home Development Mutual Fund (HDMF), also known as the Pag-IBIG Fund, to help its members recover from the adverse effects of natural and man-made calamities. This loan program is designed to provide immediate relief to members living or working in areas declared under a state of calamity by the Office of the President or the local government unit (LGU). It reflects the government’s social welfare objective of promoting financial stability and resilience among Filipino workers.

II. Legal Basis

The Pag-IBIG Calamity Loan is grounded on the Pag-IBIG Fund Charter, Republic Act No. 9679 (Home Development Mutual Fund Law of 2009), and subsequent Pag-IBIG Fund Circulars governing the implementation of short-term loans. Under Section 7 of R.A. No. 9679, the Fund is empowered to establish and administer loan programs for its members, including emergency or calamity-related loans.

Furthermore, the declaration of a state of calamity serves as a legal prerequisite under Proclamation or Resolution issued by competent authorities, which triggers eligibility for the Calamity Loan program in affected areas.

III. Eligibility Requirements

To qualify for the Pag-IBIG Calamity Loan, an applicant must meet the following conditions:

Active Membership Status
- The member must have at least twenty-four (24) monthly savings, regardless of continuous or intermittent payments.
- At least one (1) monthly saving within the last six (6) months prior to the date of loan application.
Residency or Employment in a Calamity Area
- The applicant must live or work in an area declared under a state of calamity by the Office of the President or the concerned LGU.
Good Standing with Pag-IBIG Fund
- The member must not have any defaulted Pag-IBIG loans (e.g., previous Calamity, Multi-Purpose, or Housing Loans).
Updated Membership Information
- The member’s profile must be up to date with correct address and employment details.

IV. Documentary Requirements

Applicants must submit the following documents to any Pag-IBIG branch or via online filing (Virtual Pag-IBIG):

Pag-IBIG Calamity Loan Application Form
- Duly accomplished and signed by the member-borrower.
Valid Government-Issued ID
- Photocopy (front and back) of one (1) valid ID, such as a driver’s license, passport, or UMID.
Proof of Income
- For employed members: Certificate of Net Pay, Payslip, or Employer’s Certification.
- For self-employed or voluntary members: Income Tax Return, or other acceptable proof of income.
Proof of Residence or Employment in Calamity Area
- Utility bills, barangay certificate, or company certification.
Declaration of Calamity
- The Pag-IBIG Fund relies on the official calamity declaration from the Office of the President or the LGU. No separate document from the applicant is needed once confirmed.

V. Loan Amount and Terms

Loanable Amount
- Up to 80% of the member’s total accumulated savings (TAV), which include both personal contributions and employer counterpart, plus earned dividends.
Interest Rate
- Fixed at 5.95% per annum, one of the lowest interest rates for short-term loans.
Repayment Period
- Payable in 24 months (2 years), with a 3-month grace period for the first payment following loan release.
Payment Options
- Salary deduction (for employed members)
- Over-the-counter or online payments (for voluntary/self-employed members)
- Payment via Virtual Pag-IBIG, accredited partners, or payment centers.

VI. Application Process

Verification of Calamity Declaration
- Confirm if the applicant’s area is officially declared under a state of calamity.
Submission of Application
- File online through Virtual Pag-IBIG or submit the physical form to the nearest Pag-IBIG branch.
Loan Evaluation and Approval
- The Fund verifies membership status, contributions, and eligibility.
Loan Release
- Approved loan proceeds are credited via:
  - Loyalty Card Plus, or
  - Member’s registered bank account.

VII. Repayment and Penalties

Commencement of Payment
- Repayment begins after the 3-month grace period.
Mode of Payment
- Employers remit through payroll deduction, while voluntary members pay directly through partner institutions.
Penalties
- Late payments incur a penalty of 1/20 of 1% per day of delay on outstanding balances.

VIII. Loan Renewal and Re-Availment

Members may renew their Calamity Loan after paying at least six (6) monthly amortizations and maintaining active membership.
Renewal is subject to the same eligibility requirements and existing balance offsets from the prior loan.

IX. Coordination with Other Loans

A Pag-IBIG member may avail both the Calamity Loan and the Multi-Purpose Loan (MPL), but the combined total loanable amount cannot exceed 80% of the TAV.
When availing of a Calamity Loan while an MPL is outstanding, the member’s existing MPL will be restructured into a single account, subject to updated terms.

X. Important Notes and Legal Implications

False Information
- Submission of falsified documents or misrepresentation constitutes fraud under the Revised Penal Code and may lead to administrative sanctions.
Loan Default
- Failure to pay amortizations may result in offsetting from the member’s TAV or deductions from future benefits.
Tax Exemption
- Proceeds of the Pag-IBIG Calamity Loan are not subject to income tax, being a form of assistance, not income.

XI. Practical Tips for Applicants

Verify Eligibility Early: Check contribution history through the Pag-IBIG website or Virtual Pag-IBIG portal.
Use Digital Channels: Online filing ensures faster processing, especially during widespread calamities.
Maintain Updated Records: Regularly update address and employment details to avoid delays.
Monitor Loan Status: Track applications and payments online to prevent delinquency.

XII. Conclusion

The Pag-IBIG Calamity Loan is a crucial safety net for Filipino workers, balancing legal integrity, administrative efficiency, and humanitarian consideration. By providing accessible and low-interest financial relief during times of disaster, the program embodies the state’s constitutional commitment to promote social justice and protect the welfare of labor. Proper awareness of eligibility, compliance, and obligations ensures that members can maximize the benefits of this program and recover more swiftly from adversity.