Metro Manila (CNN Philippines) — According to the 2014 World Risk Index Report, the Philippines ranks second as the most disaster risk prone country in the world. Since Vanuatu (first most disaster risk prone) is a much smaller country, the Philippines tops the world for having the largest exposure to disaster risk in terms of population and land area.
With an average of 20 typhoons per year hitting the country, it is common for Philippine households and infrastructure to sustain damages from flooding and strong winds. The Philippines is also susceptible to damages and losses from other disasters such as earthquakes, droughts, and volcanic eruptions. How do Filipinos cope?
Certain government entities provide financial assistance to victims of calamities.
The Home Development or “PAG-IBIG” Fund offers “Calamity Loans” which may be used to repair damages to homes or to answer for losses caused by calamities.
Last August 4, PAG-IBIG Fund President Atty. Darlene Berberabe appeared as a guest on Legal Help Desk on CNN Philippines to personally answer questions about Calamity Loans.
To qualify for a Calamity Loan, a PAG-IBIG member must have at least 24 monthly contributions and at least five monthly contributions for the last six months. The area where the PAG-IBIG member resides must have been declared to be under a state of calamity by the Office of the President or the local Sanggunian.
A qualified member must submit the following: Calamity Loan Application Form (which is available on PAG-IBIG’s website www.pagibigfund.gov.ph); two valid identification cards (IDs); and proof of income. Applicants do not have to prove that their house sustained damages due to the calamity.
Atty. Berberabe says that Calamity Loans are usually released by PAG-IBIG within one to three days from application.
It is important to remember that Calamity Loans must be applied for within 90 days from the date a state of calamity is declared. Thus, victims of Typhoon Yolanda who have not fully recovered may no longer apply for Calamity Loans. However, Atty. Berberabe said that PAG-IBIG offers a special housing program with subsidized interest rates and relaxed requirements for Typhoon Yolanda victims.
PAG-IBIG members who do not meet all the requirements for Calamity Loans may obtain “Multi-purpose Loans”. Multi-purpose Loans (as the name implies) may be used for different purposes. Multi-purpose Loans have slightly higher interest rates compared to Calamity Loans.
Atty. Berberabe also mentioned that members who have PAG-IBIG Housing Loans may also qualify for obtaining insurance at much lower rates compared to those offered by insurance companies. This insurance would also benefit members who suffer losses or damages to their homes caused by calamities.
The Social Security System (SSS) does not have “Calamity Loans” but its members may obtain Salary Loans and/or Housing Repair Loans according to Marissu Bugante, SSS Vice-President of Public Affairs Division.
An applicant for a Salary Loan must submit a Loan Application Form, SSS digitized ID or E-6 (acknowledgement stub), and two valid IDs.
Loans from PAG-IBIG and SSS have less requirements and usually offer lower rates than typical loans from banks. More than being liabilities, loans offered by PAG-IBIG and SSS are part of the benefits enjoyed by their members.
Atty. Karen Jimeno is a junior partner at Jimeno Cope & David Law Firm and a law professor. She hosts Legal Help Desk on CNN Philippines every Tuesday at 9:30PM. She graduated from UP Law School and Harvard Law School, and is licensed to practice law in the Philippines and in New York. Follow her on Twitter at @attykarenjimeno or email legal questions to legalhd@cnnphilippines.com.
