A Narrative Report in

On-the-Job Training undertaken at Pag-IBIG FUND Molo Branch

located at MH Del Pilar Street, Iloilo City, Philippines

Presented to the faculty head of College of Commerce

University of San Agustin

Lou Anthony Tan, City of Iloilo

In partial fulfillment of the requirements for the degree of

Bachelor of Science in Business Administration

Major in Financial Management

Submitted by:

Wency N. Surmieda

Submitted to:

Prof. Lou Anthony Tan

2019
 APPROVALSHEET

A Narrative Report entitled “A Narrative Report in On-the-Job Training undertaken at

Pag-IBIG FUND Molo Branch located at MH Del Pilar Street Molo Iloilo City, prepared and

submitted by Wency N. Surmieda in partial fulfillment of the requirements for Bachelor of

Science in Business Administration Major in Financial Management, is hereby endorsed for

approval.

Accepted and approved in partial fulfillment of the requirements for the degree of

Bachelor of Science in Business Administration Major in Financial Management.

Mr. Lou Anthony Tan, M.B.A

College of Commerce

________________________

Date
 TABLE OF CONTENTS

I. Title Page
II. Approval Sheet
III. Certificate of Completion
IV. Background of the Narrative Report
V. Company Background
- History. Location Sketch, Address, Contact person and supervisor
-Vision, Mission, Core Values
-Goals/ Objectives and Strategies
VI. Products and Services
VII. Summary
VIII. Conclusions
XI. Recommendation
- Application Letter
- Letter of Endorsement
- Internship Agreement
- Memorandum of Agreement
- Company Acceptance
- Periodic Reports
- OJT Performance Evaluation
- OJT related photos
- Medical Certificates
 DEDICATION

I wholeheartedly dedicate this

Narrative Report to my family and love ones,

to Mr. Gabrielle P. Escultura and family,

to all my professors especially to Prof. Lou Anthony Tan,

to the Pag-IBIG FUND Molo –

National Government Sector – Cluster 6 officials,

to my friends and co-trainees and above all,

to our Almighty God.

 ACKNOWLEDGEMENT

With deepest gratitude and appreciation, I humbly give thanks to the people who, with all

they can, helped me in making my On-the-Job Training a possible one.

To my parents, for their unending love and support, for providing all my needs

financially and morally, for their patience and understanding during my training days that I can’t

help them in the chores, for their never fading advices and for being there for me no matter what.

To my brother and sister who serve as an inspiration to me, who keep on encouraging me

to always make the best out of everything and for the being proud and ever supporting siblings to

me.

To the institution where I am studying, University of San Agustin, where I am

continuously growing as a Bachelor of Science in Business Administration Major in Financial

Management student and to Mr. Lou Anthony Tan and family for giving us, students, the

opportunity to be educated without spending too much.

To the Pag-IBIG FUND Molo Branch employees, for their warm welcome to me. To my

Training Manager, Sir Gabrielle Escultura, to my Training Supervisor Ma’am Lilibeth Geraldoy

and to the rest of the Pag-IBIG FUND employees, I am very grateful for having them as part of

my On-the-Job Training. For all their advices and for everything that they taught me during my

stay with them and most of all, for the memories we’ve shared – the happy moments, the

sorrowful ones, the rush hours, the brainstorming and nerve-wrecking days and for everything

that they did that contributed to my growth as a human being. I thank them so much.
 To my friends and co-trainees, for the happiness and for being there to support me and to

comfort me whenever I have difficulties during my training. I thank them for the friendship and

teamwork and for being my companions whom I can share my laughter and sorrows with.

Above all, to our Almighty God, for His unconditional love and for all the blessings He is

showering upon me each day of my life. With love and gratitude, I thank Him for guiding me

during my training and for making this On-the-Job Training a possible one. For the provision and

wisdom He has bestowed upon me, for keeping me and my love ones always safe, for giving me

enough knowledge and ability to perform each task that was assigned to me and for the

challenges He has given me that made me stronger than ever. I thank Him for His comfort

during the times that I am about to give up. By His grace, I was able to finish this training

without any conflict.

Most of all, I thank Him for His Word that keeps on reminding me that “I can do all

things through Christ which strengthen me” (KJV) (Phil. 4:13)

Wency N. Surmieda
Bachelor of Science in Business Administration
Major in Financial Management
 INTRODUCTION

On-the-Job Training is part of a college curriculum that aims to train and orient students

about the work and their future career. It is a type of skill development where a worker learns

how to do the work through hands-on experience. On the Job Training is one method by which

students exposed with different work situation designed to give students an opportunity to

experience and a chance to apply the theories and computation that they have learned from the

school. It also helps the students to acquire relevant knowledge and skills by performing in actual

work setting.

OJT is very important not only to teach students regarding their chosen career but also to

show students the reality about working. The students will be exposed to the actual work related

to the course that they are taking. It also allows those with no experience to work and to learn at

the same time. On-the-Job Training helps the trainee to learn more about his chosen field and

practice what he has learned from the school. It helps in the building up of the trainee’s

competence. Of course, when a student is competent enough, he will able to do things

successfully and. This training develops one’s professionalism in dealing with people. After the

training, the trainee will be able to handle situations properly and he’ll be able to know how to

socialize well with his colleagues. He will also able to work well with everyone and he’ll have a

good teamwork. OJT also enhances the critical thinking abilities and discipline of the student

conducting his training in a company. His ability to make sound decisions and evaluate pertinent

factors will be improved.

Having a proper On-the-Job Training helps in the preparation of future professionals for

their future jobs. What the students learned in their On-the-Job Training, even the little things,
can be applied when they are already working. Students will be trained not only academically but

social as well. The way they work and communicate with others will not be a problem for them

anymore. It also gives the trainee the chance to immerse himself in his chosen field and

experience and learn the skills necessary to the industry he is interested in. Working with

experienced staff, one will be able to observe how the job is done properly.

Aside from work experience, On-the-Job Training allows the trainee to get acquainted

with the real professionals and to meet people having different positions in the company, either

high or low. The trainee will be able to know how to adjust to other people’s personalities and

attitudes. On-the-Job Training requires effort and seriousness. A trainee should take the OJT

seriously as it can be a powerful tool for a person in preparing for the next chapter of life as a

professional. It can possibly be a source of recommendation when they take that big lift from

being students to career professionals someday.

 COMPANY PROFILE

The Home Development Mutual Fund (abbreviated as HDMF), more popularly known

as the Pag-IBIG Fund, is a Philippine government-owned and controlled corporation under

the Housing and Urban Development Coordinating Council responsible for the administration of

the national savings program and affordable shelter financing for Filipinos employed by local

and foreign-based employers as well as voluntary and self-employed members. It offers its

members short-term loans and access to housing programs.

HISTORY

HDMF, more known by another name, Pag-IBIG Fund (Pagtutulungan sa Kinabukasan:

Ikaw, Bangko, Industriya at Gobyerno, English: Cooperation for the Future: You, the Bank,

Industry and the Government), was founded to answer the national need for savings program and

affordable housing financing by virtue of Presidential Decree 1530 which was signed on June 11,

1978. Its original purpose was solely as a provident fund to encourage savings among Filipinos,

but it was later decried as a duplicate to the functions of Social Security System and Government

Service Insurance System. It was also criticized by the labor sector describing the required

contribution as oppressive, by employers that opposed to any additional contribution in behalf of

workers, and by the academe as a representation of injustice of the incumbent Marcos regime.

By March of 1979, the fund was administered by the National Home Mortgage Finance

Corporation (NHMFC), a government corporation mandated to increase availability of housing

loans to Filipino workers.

By June, HDMF was implemented by virtue of Executive Order No. 538. Emily Abinoja,

Norma Salud, and Marilou Adea, the vice president of the Shelter Savings Group (SSG), an arm

of NHMFC, formed a team to conduct a study of the Central Provident Fund, Singapore's

national savings program, with the objective of modeling its fund structure. The team received

support from advertising agency J. Romero & Associates that came up with the acronym Pag-

IBIG, from actuaries Enrique Zalamea and Leo Tan, from Kapisanan ng mga Brodkaster ng

Pilipinas (KBP) that disseminated information about HDMF across the country, from

Technology Resource Center that provided computer facilities, and from Development Bank of

the Philippines that offered the initial mortgage lending facilities. When the fund was launched
in the midst of martial law, it was opposed by the public, which pushed NHMFC to create

speakers' bureau to address the opposition.

On December 14, 1980, Presidential Decree No. 1752 was passed that amended the act creating

the Home Development Mutual Fund. Specifically, the decree contained the following distinct

features:

 Establishing HDMF as a fund owned by members, with the government serving as its trustee

and guarantor

 Setting the mandatory coverage at 1-3% of contribution of no more than P3,000 per month

salary base.

BENEFITS OF THE FUND

Housing Loan

The most popular program benefit of the Pag-IBIG Fund offers assistance to its members

by providing affordable financing for their housing needs. HDMF accomplishes this by working

in partnership with the local Real Estate Developers and arranging affordable loans to real estate

buyers (Pag-IBIG members).

The loan had a lower interest rate compared to the prevailing rate in the market and payable in

longer terms. Pag-IBIG Fund offers a home loan at a low interest rate of 4.5% (for ₱450,000

loan) with a loan term of up to 30 years. A qualified member can get a maximum loan amount of

up to ₱ 6 Million.
Short Term Loan

Similar to the Government Service Insurance System (GSIS) and Social Security System

the HDMF also offers financial assistance to qualified member by granting short term loan.

There are two types of loans members are qualified to avail:

Multi-Purpose Loan (MPL)

This program aims to provide financial assistance to members for house repair, minor home

improvement, home enhancement, tuition or educational expenses, health and wellness,

livelihood; or other purposes. To avail the program, a member must have made at least twenty-

four (24) month membership savings, or the total savings is equivalent to twenty-four (24)

membership savings and must have at least one (1) contribution within the last six (6) months as

of month prior to date of loan application.

For members who have withdrawn their contributions due to membership maturity, the

reckoning date of the updated 24 contributions shall be the first contribution following the month

the member qualified to withdraw his MS due to membership maturity. If a member has an

existing Pag-IBIG Housing Loan, the account must not be in default as of date of application.

Should a member have an existing multi-purpose and/or calamity loan, the account/s must not be

in default as of date of application.

Calamity Loan

For members affected by unforeseen calamity like flood, fire, tropical cyclones/ typhoons,

volcanic eruption and other similar cases. Members can borrow up to 80% of their Total

Accumulated Value (TAV) subject to the terms and conditions of the program. Calamity Loan
Interest rate is 5.95% per annum. The loan is amortized over 24 months, with a grace period of 3

months. Paying period begins on the 4th month following their check date.

Provident Savings

Membership contributions to the Pag-IBIG fund is a member's individual savings, which a

member can withdraw at the maturity date. Pag-IBIG Fund makes clear that members'

contributions, plus that their employer will earn dividend. All that money, called Total

Accumulated Value (contributions plus dividend) can be withdrawn when it reaches maturity or

240 months of contributions for at least 45 years old. Unlike the money in a bank regular savings

where the interest rate is given, member's earnings in the fund is not readily foreseen ahead of

time. It essentially participating in an investment and membership earnings will depend on the

overall performance of that investment.

LOCATION SKETCH ADDRESS
 Pag-IBIG FUND VISION

For every Filipino worker to save with Pag-IBIG Fund

and to have decent shelter.

Pag-IBIG FUND MISSION

To generate more savings from more Filipino workers,

To administer a sustainable Fund with integrity,

Sound financial principles, and with social responsibility,

And to provide accessible funds for housing of every member.

Pag-IBIG FUND CORPORATE VALUES

The governing values that will steer the Pag-IBIG fund

In pursuit of its vision include

Integrity, Excellence, Professionalism, and Service.

 GOALS OBEJECTIVES AND STRATEGIES

To improve the quality of life of every Filipino, we in the Pag-IBIG Fund, commit to

provide member-focused quality service, through enhancement of the provident savings and

home financing system.

To sustain quality services, we shall:

 Pursue the highest standard to improve the effectiveness and efficiency of our

quality management system;

 Develop and enhance services that are responsive to the growing needs of

members and relevant interested parties;

 Maintain a productive work environment that promotes employee’s expertise,

engagement, team work, and wellness; and

 Uphold transparency and accountability.

“Lingkod Pag-IBIG: Tapat na Serbisyo, Mula sa Puso”

 PRODUCTS AND SERVICES

More than just providing an affordable financing option enabling average-income Filipinos to
buy homes, the Home Development Mutual Fund (HDMF)—more commonly known as the Pag-
IBIG Fund—is also offering a wide range of benefits for its members. So in order to maximize
your membership to the country’s most important shelter-financing program, Lamudi Philippines
lists down the perks and benefits the agency also offers, most of which might not be known to
most of its members.
6. Turn Your Contributions into Asset
There are two types of contributions under the Provident Savings Program of the agency: the
first and more common form is Pag-IBIG I in which employers and employees will share a
minimum deposit of Php200 monthly. When a member reaches a total of 24 monthly
contributions, he or she can avail of the Multi-Purpose Loan (MPL), Calamity Loan, or any of
the housing loans offered by the agency. In addition, Pag-IBIG I contributions will mature and
can be claimed upon reaching 240 contributions or by the 20th year. For bigger savings and larger
MPL loan values, employees and individual payers can opt to contribute more than the minimum
Php100 per month. The second type is the Modified Pag-IBIG II (MP2) Program, an additional
and voluntary five-year savings facility being offered by the Pag-IBIG Fund to its Pag-IBIG I
members. For a minimum share of Php500 per employee, members will enjoy their savings plus
the dividends earned upon the fund’s maturity or after five years.

2. Higher Contributions Mean Higher Dividends

3. Pag-IBIG Balik Savings

4. Multiple Housing Loans – Loans provided that the total loan amount will still not exceed Php6
million and the entire sum is still within the member’s financial capacity to pay. This is good
news to property buyers who are planning to buy two adjacent lots and build a home on them.
Borrowers who have existing loans with the Pag-IBIG Fund may also avail of this new service
should they decide to acquire a second or even a third property.

5. Pag-IBIG Fund Loyalty Card – Shops, boutiques, restaurants, and many others. Following this
trend, the Pag-IBIG Fund also recently launched its own version. With the new Pag-IBIG Fund
Loyalty Card, a member can enjoy special rewards and discounts when they pay for their
medicine, tuition, fuel, and many more. All they have to do is go to the nearest Pag-IBIG Fund
office, apply for a loyalty card (can be had for a fee of Php100), and enjoy rebates and points for
purchases made with the agency’s partner merchants.

6. Wide-ranging Payment Facilities and E-services – Can choose from a variety of payment
channels. The Pag-IBIG Fund now accepts payments made through Bayad Center outlets, SM
Business Centers, Save More, and SM Hypermarket. Members can also pay their monthly
contributions through Globe’s GCASH service or using their Visa or MasterCard credit card. To
make their services better, the Pag-IBIG Fund is now online and interactive. Its website is now a
one-stop shop where services range from getting a member’s identification number (or MID) to
printing and checking a housing loan billing statement.

SWOT of the Pag-IBIG Fund

 SUMMARY

The Training I had in the Pag-IBIG Fund Molo is learning many experiences each day. I

was exposed in the actual work in Pag-IBIG Fund, became familiar with the documents prepared

by the auditors there and learned how to use equipment that are usually used in the office. Aside

from those things, I also learned to be more sociable and to adjust myself in the environment

where I am working at and who I am working with.

In my more than a month stay there, I learned many things not only those that are related

to my course but also the things that molded me into the person I am right now. As I was

working as a trainee at Pag-IBIG Fund, I learned to become a hard-working person. The time to

finish the task assigned to me is important, but it also important that I should do it correctly. I

learned to appreciate even the simplest lessons studied in school. I was able to realize the

importance of theories and formulas that were discussed in the school. Also, to understand that

everything that was taught in the school can be a tool that can be used in my future career,

because during my On-the-Job Training, the terms that I have learned from school were used in

the company where I am was conducting my training, especially those terms related to

Financing. As I was conducting my training there, I also learned to follow the instructions and to

accept or admit my failure and should learn from it as what my Training Manager said to me.

After the training, I realized that on-the-job training is not just a requirement to be

completed but it is an opportunity to show what skills, knowledge, and talents that I have and

also an opportunity to experience the feeling of being a professional already.

 Aside from the experiences that I had relating to my course, this On-The-Job Training

allowed me to get acquainted with the employees of Pag-IBIG Fund Molo. Being with them is a

pleasure because I was working with the auditors. During my stay there as a trainee, they kept on

encouraging and motivating me to study hard to do my best always.

I really had a very meaningful and memorable On-the-Job Training at Pag-IBIG Fund

Molo. Tough I already finished working there as a trainee, I am looking forward to working with

them, not as a trainee anymore, but as an employee, SOMEDAY.

 CONCLUSION

Nothing beats experience as the perfect learning tool. This On-the-Job Training served as

my stepping stone to pursue my dream to be a Certified Financial Analyst someday. This training

gave me an inspiration to be more serious and focused in studying. I was encouraged to do more

efforts in my studies. Since I was given some ideas about the work of an auditor in the company

where I conducted my training, I am inspired to be like them someday.

Despite the short period of my training, it was a still a very meaningful one. The training

enriched my confidence created a foundation of being a good employee someday. It caused a

very huge effect to me as a Bachelor of Science in Business Administration Major in Financial

Management Student. I was really renewed. I learned to be diplomatic in both action and words.

This training made me realize that it is really good to know what you’re doing, and to

love it. As a student, what I can do for now is to learn whatever. I can in school, be inspired, love

the path I am taking, and do my best in everything. I do, with a positive outlook in mind. I

realized that I should be more focused in school and do everything heartily and with all that I

can.

It is also very warm to be the heart to know that you have accomplished something and

even warmer when there are people who are so proud of what you have done and I felt this

feeling during my On-the-Job Training. It inspired me to be more determined and competitive in

everything that I do in my daily life as a student today and as a professional someday.

 My On-the-Job Training is very helpful and will be very helpful to me as I continue to

take my journey as a fourth year student in the field of Finance. It really gives me a taste of the

real world- a glimpse of what lies ahead after I graduate.

OJT RELATED PHOTOS