Update on Pag-IBIG Cash Loan Offer Multi-Purpose Loan or MPL
PAG-IBIG CASH LOAN – The Fund announced the improvement on the maximum loanable amount and the eligibility requirements under the Multi-Purpose Loan (MPL) offer.
In the Philippines, one of the biggest state entities with multi-million member populace is the Pag-IBIG Fund. Its member populace is composed of both locally-employed and self-employed individuals as well as overseas Filipino workers (OFWs) and voluntary members.
The Fund is undeniably most popular for the Pag-IBIG Housing Loan offer. Following its decades of service to its members, many Filipinos have acquired residential properties of their own through the loan offer. Its loan offers also continually grew in its pursuit to extend a helping hand to its members in achieving their goals.
Aside from the Housing Loan offer of the Fund, there is also a Pag-IBIG cash loan offer called the Multi-Purpose Loan. It is also called by its abbreviation, the MPL. It was designed to help meet the short-term financial needs of the members.
Previously, the maximum loanable amount under the Pag-IBIG Multi-Purpose Loan was at 80% of the total regular Pag-IBIG savings of the member-borrower. The savings is inclusive of the monthly contributions of the member, the contributions paid by his/her employer, and the interest earned by both.
Recently, based on a report on GMA News, the Pag-IBIG Fund announced improvements on the features of its Multi-Purpose Loan offer. It has made changes on both the maximum loanable amount under the Pag-IBIG cash loan as well as the eligibility requirements for application.
Maximum Loanable Amount. From the previous cash loan cap of 80% of the member-borrower’s regular savings, the Fund has increased the maximum loanable amount under the Pag-IBIG cash loan offer to up to 90% of the total regular savings of the member-borrower.
Eligibility Requirements. With regards to the qualifications under the MPL, from the previous eligibility requirement of having posted a total of at least 24 monthly premiums, the Fund has reduced it to a total of 12 monthly premiums. Here are the other qualifications in applying for the loan offer:
- in active membership by having at least one (1) monthly membership savings within the last six (6) months prior to the date of loan application
- has no Pag-IBIG Housing Loan, MPL and/or Calamity Loan in default
- with a reliable source of income
According to the Fund, increasing the maximum loanable amount under the offer “ensures members have greater access to financial resources when needed most”. Based on the report, the reduction of the total premiums required for qualification to the loan offer also widens the access of the member for immediate financial needs.
With regards to the loan term, the loan is payable for up to three (3) years. Meanwhile, the Fund has also introduced the new one-year repayment term. Previously, the loan was payable either for two (2) years or three (3) years. The monthly interest rate remains at 1.4583%.
If you are into a housing loan, not only the Pag-IBIG Fund has it but also the Social Security System. There are also millions of Filipinos who are SSS members. You can compare the Pag-IBIG Housing Loan versus the SSS Housing Loan.