MANILA, Philippines?Members of the Home Development Mutual Fund or Pag-IBIG who have lost their jobs can now avail of loans from the agency under a new program.

The Special Short Term Loan (STL) Program for Displaced Workers was designed to help those who have been terminated from work as a result of cancellation of their employment contracts, closure of company and lay off, according to Vice President Noli de Castro.

?This measure is part of our effort to mitigate the effects of the global financial crisis on our unemployed members,? said De Castro, chair of the Housing and Urban Development Coordinating Council and the PAG-IBIG Fund Board of Trustees.

In a statement, De Castro said that members who made at least 24 monthly contributions to the Fund could borrow an amount equivalent to 50 percent of their total savings.

The loan is payable in three years, including a one-year grace period.

Unemployed members with existing Multi-Purpose Loan (MPL) can borrow up to 50 percent of their remaining savings as PAG-IBIG has already deducted or offset the balance of their earlier loan from their outstanding contributions.

The Fund has also condoned any incurred penalties.

Jaime Fabiana, PAG-IBIG Fund officer in charge, said that members should submit an accomplished MPL Application Form and a notice of separation from employment or termination of services or a certification of lay-off.

?We will secure a list of companies that closed and a list of repatriated overseas Filipino workers from the Department of Labor and Employment to speed up the processing of applications,? he said.

Members who have been inactive for more than six months should update their membership record prior to filing their loan applications.

For the members? convenience, their loan proceeds will either be credited to the borrower?s bank account through the Land Bank?s Payroll Credit Systems Validation (PACSVAL) or the Philippine Domestic Dollar Transfer System (PDDTS) facilities, and other similar modes of payment. Proceeds may also be released through a check, payable to the borrower.