Arianne Keith Velasquez, CPA
In view of the pandemic the whole world is suffering with recently, it is impossible for Filipinos to ignore the fact that the human respiratory system is not only being compromised here but also the livelihood of family providers such as employees under the no work, no pay policy. The sudden declaration of the Enhanced Community Quarantine in the entire Luzon after 48 hours of General Community Quarantine, which made it difficult to cross along city borders, hurts the pockets of many.
On March 17, 2020, Proclamation No. 929, pursuant to Section 16 of Republic Act No. 10121, was issued by President Rodrigo Duterte to declare the Philippines under State of Calamity enjoining the government agencies to provide full assistance to the Filipino community with the great efforts to defy COVID-19.
To wit, PAG-IBIG Fund is one of the established national saving programs providing financial assistance to every member or contributor, which can be a self-employed individual, private or government employee, in terms of housing needs and other purposes.
Calamity loan or Multi-purpose loan are options which members can avail of during this crisis as aid in meeting the daily needs of family members.
Who is eligible to apply?
Below criteria must be met before a member can avail of the said loan:
How much can an applicant avail as Calamity Loan?
Members who are eligible can borrow up to a maximum of 80 percent (80% ) 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.
The following table presents the maximum amount a member can avail based on the number of monthly contributions:
Is the loan interest-free?
The Calamity loan is not interest free, however, PAG-IBIG offers the lowest interest rate in the country which is 5.95% per annum.
The said loan is amortized over 24 months with a grace period of 3 months from check issuance thus monthly payment shall start on the fourth month. Monthly amortizations shall be paid on or before the 15th day of each month.
Penalties will be imposed as follows in case of late payments:
How to Apply?
Below are the easy steps and requirements on how to proceed with the application:
3. Secure the Short Term Loan Acknowledgment Receipt.
4. When approved, get the cash loan on the scheduled date thru the Cash Card or Check.
With the application, it is important to note that Calamity Loan can be applied within 90 days after the declaration of State of Calamity otherwise members may opt to avail Multi-Purpose Loan (MPL) which bears 10.5% interest rate per annum. The MPL program follows the same process and requirements with the Calamity Loan except for the application form.
How to pay?
If employed, the amortization is paid thru salary deduction and will be remitted by Employer. On the other hand, payments will be made directly to the nearest PAG-IBIG Fund branch if self-employed.
In any circumstance that you are in need of financial help, it is not so bad to be knowledgeable and updated on the government programs of both national and local units to assist you.
Disclaimer: This is for purposes of academic discussions only as personally summarized by the author, not of Tax and Accounting Center, Inc. and is not a substitute for an expert opinion. Please consult your preferred tax and/or legal consultant for the specific details applicable to your circumstances. For comments, you may also please send mail at info(@)taxacctgcenter.ph, or you may post a question at Tax and Accounting Center Forum and participate therein.
8 Ways to Get New Quality Clients for Ph CPA Practitioners
How to Record Foreign Currency Denominated Transactions in the Philippines?
Why Should You Withhold Taxes on Payments to Digital Freelancers in the Philippines?
Business Registration and Compliance: The Philippine Digital Freelancer’s Milestone to a Long-term Business
Tax Incentives of existing PEZA, BOI, etc. entities under RA 11534 CREATE Philippines
Vetoed Provisions of RA 11534 CREATE
RMC No. 29-2021: Adoption of e-Signature on Certain BIR Forms
Webinar: Input VAT Refund
2022 Tax and Accounting Online Conference
Webinar: Withholding Taxes, Subjects & Applications
Webinar on Corporate Entity Registration & Business Compliance: The start of a long-term business
Webinar: Winning BIR Tax Assessment and Preparing Effective Tax Protest
Live Webinar on Ph Payroll Computation and Taxation
Live Webinar: Value Added Tax: In and Out
Live Webinar: PEZA Registered Entities: Taxation and Basic Reports
Live Webinar: Basic Accounting & Tax Compliance for Digital Freelancers & Other Professionals Under 8% Tax Scheme
Phone : (02) 5310-2239
Mobile : Smart: 0921-343-2024
Email : info(@)taxacctgcenter.ph
© Tax and Accounting Center 2022. All Rights Reserved