PAG IBIG offers various loan programs, and the maximum loanable amount depends on the type of loan, the member’s eligibility, and the capacity to pay. So, How Much Can I Loan in PAG IBIG?
PAG IBIG is the Home Development Mutual Fund, a governmental authority in the Philippines. The power’s motive is to offer its members affordable housing loans.
The maximum loan amount you can borrow from PAG-IBIG (Home Development Mutual Fund in the Philippines) primarily depends on your monthly contribution, the number of contributions you’ve made, and your capacity to pay. As of my knowledge cutoff, the maximum housing loan amount offered by PAG-IBIG is up to 6 million PHP (6,000,000).
If you are a member of PAG IBIG and are looking to apply for a housing loan, you may be wondering how much you can loan. To meet your need, here in the article below, we will cover all the relevant subheadings to help you determine the answer.
CHECK: How Much First Loan In Pag IBig?
Contents
How Much Can I Loan in PAG IBIG?
Most noticeably the amount of loan varies as per the type of loan offered by the PAG IBIG. Each kind and category stands by different figures.
The details of these types and loan amounts are elaborated below;
Multi-Purpose Loan
The Multi-Purpose Loan (MPL) is a loan offered by PAG IBIG that allows its members to borrow up to 80% of their total accumulated savings in the agency. The loanable amount from MPL ranges from PHP 5,000 to PHP 500,000, depending on the member’s savings and capacity to pay.
Moreover, the interest rate for MPL is currently set at 10.5% per annum, with a loan term of up to 24 months. The loan is payable in equal monthly amortizations, which will be deducted from the member’s salary or income from other sources.
Calamity Loan
The maximum loanable amount for the PAG-IBIG Calamity Loan is PHP 20,000. This means that members who qualify for the loan can receive up to PHP 20,000 as a loan to help them recover from the damages caused by a natural calamity.
Moreover, it is intended to provide immediate financial assistance to members affected by a natural disaster. Thus, more than the loanable amount may be needed to cover all the expenses incurred by the member due to the calamity. Therefore, members are advised to carefully assess their financial needs and capacity to pay before applying for the Calamity Loan.
Housing Loan
PAG IBIG offers an Affordable Housing Program which provides lower interest rates and longer loan terms for eligible members. The maximum loanable amount for the Affordable Housing Program is PHP 750,000.
However, for the Regular Housing Loan, the maximum loanable amount is up to PHP 6 million, with a loan term of up to 30 years. However, the actual loanable amount may be lower than the maximum amount, depending on the member’s income and capacity to pay.
In addition to all these, the average amount and necessities for the authenticity of the loan amount vary greatly. Various factors define this aspect; however, the most general amount falls at around 6 million.
Points Consider For Loan
Apart from this, some of the noteworthy points are provided below to consider;
Membership Requirements
To be eligible for a PAG IBIG housing loan, you must be a member of the agency for at least 24 months and have made at least 24 monthly contributions. If you still need to join, you can apply for membership and start contributing to meet the requirements.
Loanable Amount
The loanable amount from PAG IBIG depends on several factors, including your income, loan purpose, and capacity to pay. The maximum loanable amount is PHP 6 million, but the actual amount you can borrow will depend on your circumstances.
Income Requirement
To qualify for a PAG IBIG housing loan, you must have a gross monthly income of at least PHP 17,500. Your payment will be verified through employment or business documents, such as pay slips, income tax returns, and financial statements.
Loan-to-Value Ratio
The loan-to-value (LTV) ratio is the percentage of the appraised value of the property that you can borrow. For PAG IBIG housing loans, the LTV ratio ranges from 60% to 90%, depending on the loan amount and loan purpose. For example, if you borrow PHP 2 million for a house and lot purchase, and the appraised value of the property is PHP 3 million, your LTV ratio is 67%.
Loan Term
The loan term for PAG IBIG housing loans ranges from 5 to 30 years, depending on your age, loan purpose, and capacity to pay. The longer the loan term, the lower your monthly amortization, but the higher the total interest you will pay over the life of the loan.
Loan Processing and Fees
The loan processing time for PAG IBIG housing loans can take anywhere from 2 weeks to 2 months, depending on the completeness of your documents and the volume of loan applications being processed. There are also charges associated with the loan, such as appraisal fees, mortgage redemption insurance, and notarial fees.
Interest Rate
PAG IBIG offers competitive interest rates for its housing loans, ranging from 3% to 10.5%, depending on the loan amount and loan term. The interest rate is fixed for the first few years of the loan term and may be adjusted based on prevailing market rates.
Frequently Asked Questions
Is it Okay to apply for multiple PAG IBIG loans simultaneously?
No, a member can only have one outstanding loan with PAG IBIG. The member must fully pay their previous loan before applying for a new one.
How do I determine my loan eligibility for the PAG IBIG Housing Loan?
Loan eligibility for the Housing Loan is based on several factors, such as the member’s income, employment status, and credit history. The loan amount is determined by the appraised value of the property, as well as the member’s capacity to pay
What is the maximum loanable amount for the PAG IBIG Education Loan?
The PAG IBIG, Education Loan Program, offers a maximum loanable amount of up to PHP 300,000 per academic year. This loan is designed to assist PAG IBIG members in paying for their education-related expenses of themselves, their spouses, or their children, including tuition fees, miscellaneous fees, and other educational costs.
The Final Statement
In conclusion, the amount you can loan from PAG IBIG depends on several factors, such as your income and capacity to pay. If you are not getting the precise answer or idea, consult a PAG IBIG representative or a financial advisor to help you with the loan application process.
REF: https://www.pagibigfund.gov.ph/FAQ_MPL.html
REF2: https://www.pagibigfund.gov.ph/FAQ_HL.html
