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OBJECTIVE

The program aims to provide financial assistance to organized groups of formally employed Fund members for the acquisition and development of rawland or partially developed land, which shall serve as the site of their housing units.

FINANCING MECHANISM

• Financial assistance for land acquisition and site development shall be in the form of a direct loan to the community association.
• The loan proceeds for land acquisition shall be released directly to the landowner/s while that for site development shall be paid to the developer/contractor engaged to undertake site development for the community association.
• Financial assistance for house construction shall be in accordance with Pag-IBIG guidelines on additional loan for house construction.

ELIGIBITY REQUIREMENTS

The beneficiaries or project proponents must be organized into community associations with a minimum of 30 members to a maximum of 250 members, duly registered with the proper agencies which will vest them with legal personality. (e.g., the SEC or the CDA and the HLURB).

The community association must have been existing for at least 6 months prior to loan application.

The officers of the association must satisfy the following requirements:

1. Must have a minimum term of office of at least 2 years without prejudice to removal from office due to disciplinary action.
2. Must have been regularly paying the dues under the group loan.
3. Must have an updated account and in good credit standing.

All beneficiaries of the housing project must be active and formally employed Pag-IBIG members, eligible for loans under the existing Consolidated Guidelines of the Pag-IBIG Housing Loan Program at the time of loan availment.

All members of the community association must also attend the Pag-IBIG Fund’s seminar/workshop on the GLAD Program and the Pag-IBIG Housing Loan Program.

LOAN TERMS

1. Loan Amount

The total loan to the community association shall be the aggregate of the amounts extended to the individual member-beneficiaries.

The member’s loan entitlement per individual beneficiary shall be proportionate to his Pag-IBIG contributions, inclusive of the employer counterpart contributions.

2. Interest Rate
   
• 9% p. a. for land acquisition and site development.
• Once the loan share of the community association’s member is converted into lot purchase loan, the interest rate shall be adjusted in accordance with the Consolidated Guidelines of the Pag-IBIG Housing Loan Program rates prevailing at the time of loan availment.
• For projects up to house construction, the interest rate shall be based on the individual beneficiaries’ total loan entitlements in accordance with the Consolidated Guidelines of the Pag-IBIG Housing Loan Program rates prevailing at the time of housing loan availment. This rate shall be charged once loan releases for house construction are effected.



3. Loan Payments

The community association shall be responsible for the collection of loan payments from member-beneficiaries and the remittance of the same to Pag-IBIG Fund while the loan is still considered as an obligation of the group. During this period, only the interest shall be paid, with the first payment due 30 days from the date of the initial loan release.

The loan principal shall be paid by the proceeds of the conversion of the community association’s GLAD loan into individual lot purchase loan. The member-beneficiary’s share in the loan obligation of the community association is deemed paid once the title of the lot assigned to him is transferred to his name and the mortgage covering his lot purchase loan is annotated on the said title.

Once individual Promissory Notes are executed, the member-beneficiaries themselves shall remit loan amortizations directly to the Pag-IBIG Fund.

Any member-beneficiary of the community association can fully pay anytime his share in the obligation of the community association (GLAD loan) in cash or through lot purchase loan subject to the following:

1. Land development is already completed and the mother title has been individualized.
2. He has secured a clearance from the community association allowing him to fully pay his loan in cash or through lot purchase loan.
3. His membership contribution is updated.



4. Loan Period

The total loan amount to the community association shall be paid within 2 years from the date of initial loan release.

5. Processing Fee

A loan processing fee equivalent to P100 per project beneficiary or P10,000, whichever is higher, shall be charged to the community association, to be paid as follows:

• P7,000 upon filing of application (non-refundable); and
• Balance upon loan approval.



6. Penalty Charges

Failure to pay the loan obligation when due shall subject the community association to a penalty charge equivalent to 1/20 of 1% of any unpaid amount for each day of delay or 18% p. a..