PAG IBIG Funding Agency offers financial assistance to all government and private employees via short-term Multi-purpose loans. What is Multi Purpose Loan in Pag Ibig Fund? In 2021, PAG IBIG agency has disbursed Php38.9 billion in cash loans to its eligible members.
The purpose of this cash loan is to facilitate all qualified members their urgent expenses and to address their financial emergencies. Before applying for this short-term loan, it is essential to know why this loan is vital for you and how you can qualify for this grand offer.
What’s the Multi-Purpose Short-Term loan of PAG IBIG?
PAG IBIG’s Multi-purpose loan comes with cash assistance to all qualifying members. It works similarly to other government loans as well. You can gain more than 80% of your PAGIBIG regular savings with this loan processing period of two days.
You are capable of obtaining this borrowing amount and supporting your family while facing financial gaps. However, you can avail of this loan opportunity that’s straightforward and more compatible with emergencies.
However, this loan offers relief to members via:
Hospital bills
House improvement
Business capital
Child’s JS prom
Features the low-interest rates (10.5% per annum)
Travel
Vacation with your family
Utility bills
Livelihood
Home furniture and appliances
Credit card balances
Shopping
Special events
Education-related expenses
Unforeseen financial needs
Well, this loan may consider a member’s “Personal Loan” that’s available within a short while.
Why PAG IBIG Multi-purposes loan is worth availing of?
There are following five reasons to choose this loan:
Effortless Loan Applying Process: You can apply for this loan easily online or in person through our PAG IBIG platform. Meanwhile, employees can also apply through their employers.
Accessible Loan Eligibility Criteria: If you’ve accomplished your 24 monthly savings in PAG regular savings, you become eligible for this loan. Active loaners can obtain this cash amount if they have fulfilled one monthly saving in the previous 6 months. Afterward, once you meet these loan criteria, it’s accessible with minimal paperwork, no collateral required, and ensures quick processing.
Affordable Interest rates: You can enjoy the benefits of low-interest rates at 10.5% per annum which are lower than its similar cash loans. Hence, you may contribute to this loan that comes with flexible repayments. You can also receive a significant portion of your interest back as dividends.
Convenient repayment option: This loan allows employed members to go with their salary deductions. You can also choose the repayment way within three years with a delayed first payment as a bonus or go for a 24-month option.
Big Loanable amount: PAG IBIG offers an 80% loan amount to qualifying borrowers, including their dividends and contributions. However, you can achieve this loan along with your existing loan as well.
Therefore, these are some of the major reasons why you should apply for this loan. Regarding this, you must understand the membership documentary requirements for availing of a multi-purpose loan (MPL).
What are the Eligibility and Documents Requirements for PAG-IBIG MPL?
Eligibility Criteria for PAG IBIG MPL
Loan members must fulfill the minimal 24-month (2-year) membership savings or maintain their entire savings of Php4,800.
For this loan, you need to provide a sufficient income source.
Before applying for this short-term loan, you must ensure almost one saving in the last six months.
Your current loan status must not be in default; then, you can avail of your short-term calamity or multi-purpose loan.
Requirements
You must ensure accurate details about your document submission while applying for the MPL in PAG IBIG. These include:
Two Valid IDs; photocopies
Postal ID
Senior Citizen Card
Driver’s License
Social Security System Card (SSS)
Voter’s ID
Valid IDs for MPL Application
Government Services-Insurance System – e-Card (GSIS)
Professional Regulation Commission ID
Passport
MPL Application form: entirely filled
Proof of Income Source
National Bureau (NBI) Investigation Verification Certificate
Police Clearance Contract
Requirements for Employment Source Proof
Employed Members: Certificate of Net Salary or authentic photocopy of their latest Pay-slip
Individual Payor/Self-Employed: Commission Vouchers, Business Mayor’s Permit, and Passbook or Bank Statements for the last 12 months
Oversea Filipino Workers (OFWs)
Employment certificate
Income Tax return: it must be filed with the relevant host country
Certificate of Compensation and Employment
How much amount is loanable for the PAG IBIG Multi-Purpose loan (MPL) owner?
Your loan amount is determined by multiplying your total contributed amount for the specified number of months by the applicable percentage.
You can contribute a total of Php200 monthly to your PAGIBIG account with a Php100 deduction from your monthly pay. Meanwhile, the organization may also consider another Php100 contribution by your employer as well.
Monthly Contribution No
Total Accumulate Value (TAV)
24 – 59 months
More than 60%
60 – 119 months
More than 70%
At least 120 months
More than 80%
Suppose you’ve accumulated 30 months of monthly contribution; you may qualify for Php3,600 MPL PAG IBIG Loan.
30 (months) X Php200
= Php6,000 X 0.60
= Php3,600
Remember that this loan allows a competitive interest rate of 10.75% annually. This interest rate is taken as the lowest rate in the country. This interest is evenly distributed throughout the loan term.
How can I Apply for MPL in PAG IBIG?
You can go for a virtual or Over-The-Counter (OTC) way to apply for this loan.
OTC Application Method
Visit your nearest PAG branch and submit your MPL form with the documents
You must ensure that you’ve received your final receipt
On the scheduled date, you may receive your MPL Cash payment
Virtually Application Method
You just upload your required documents and MPL form
Fill in the details of this form; this form is also applicable to you with your employers who are enrolled in Online PAG for employers. It’s exclusive to PAGIBIG Loyalty Card Plus owners who are going to apply for MPL.
Final Statement
Being a Filipino, you can secure a Multi-purpose loan from PAG IBIG to obtain your dreams and fulfill emergencies. This economical loan option provides flexible payment plans and attractive low rates. However, you’ve learned the eligibility criteria, requirements, and worth of this loan. So you can apply for this loan by using your convenient process, whether virtually or OTC, and enjoy your payment within two business days.
Marina Aguilar is a freelance writer and editor with a passion for personal finance and real estate. She has been writing about finance and housing for over five years and has worked with various clients, including banks, financial institutions, and real estate developers. Marina believes that everyone deserves access to affordable housing and is committed to helping Filipino workers achieve their dream of homeownership through the Pag-IBIG Fund's housing loan program. In her free time, Marina enjoys hiking, reading, and spending time with her family.
