Guide on Pag-IBIG MPL Features & Application
PAG-IBIG MPL – You can check here the features of the Pag-IBIG Fund Multi-Purpose Loan and the requirements in applying for the cash loan.
One of the biggest state-run institutions in the Philippines is the Pag-IBIG Fund. It is operating in the country for decades now since it was established in June 1978 by the virtue of Presidential Decree No. 1530.
The Pag-IBIG Fund was created as an “answer to the need for a national savings program and an affordable shelter financing for the Filipino worker”. It has several loan offers including the Housing Loan, the Multi-Purpose Loan, and the Calamity Loan.
The multi-purpose cash loan offer of the Fund is the Pag-IBIG Multi-Purpose Loan or also called the Pag-IBIG MPL. It is ready to be an aswer to your financial needs including the following:
- Medical expenses;
- Minor home improvement;
- Capital for a small business;
- Tuition fee and other education-related expenses;
- Purchase of furniture, appliances or electronic gadgets;
- Payment of utility and credit card bills;
- Vacation and travel;
- Special events;
- Car repair; or
- Other needs
How much a qualified member of the Fund may borrow from the loan offer? The loanable amount is on a case-to-case basis as a qualified member is allowed to borrow up to 80% of your total Regular Savings in the government agency.
The Regular Savings is inclusive of the savings of the member-borrower, his/her employer’s share, and the accumulated dividends earned. Thus, the higher the savings, the bigger the loanable amount is.
With regards to the interest rate under the Pag-IBIG MPL, it is set at 10.5% per annum. The loan is payable for up to 36 monthly amortizations.
The Pag-IBIG Fund has set a short list of the eligibility requirements in applying for the Multi-Purpose Loan offer. Here are the qualifications that a member must meet to be eligible to apply for the Pag-IBIG MPL:
- has posted at least twenty-four (24) monthly membership savings under the Pag-IBIG Regular Savings program
- with active membership, by having at least one (1) monthly membership savings within the last six (6) months prior to the date of loan application
- if with an existing Pag-IBIG Housing Loan, MPL and/or Calamity Loan, the account/s must not be in default
- has a source of income
The loan offer is open for both salaried and non-salaried members of the Fund. It is also open for overseas Filipino workers (OFWs) and there are varying requirements among the applicants.
Most of the Pag-IBIG Fund members are also members of the Social Security System. The SSS also has its own multi-purpose cash loan offer — the SSS Salary Loan.
