Being an active member of PAG-IBIG has its perks especially in situations where finances has become a sudden or perceived as an issue.
Technically a Home Development Mutual Fund, PAG-IBIG is a national savings program founded to provide private and government employees assistance in their finance. Specifically, this refers to PAG-IBIG’s Multi-Purpose Salary Loan which is a short-term money-lending plan meant for eligible members for the following reasons:
- Capital for a startup business
- Payments for credit card bills
- Funds for travel
- Consolidation of debt
- Car overhaul and repairs
- Expenses for education and medical treatments
- Home improvements or renovations
- Acquisition of electronic gadgets, furniture, or appliances
- Expenses for special events
- Funds for other needs
PAGIBIG MPL Loan Requirements
To become entitled with the loan, a PAG-IBIG member must meet the following requirements:
- A total savings that is not less than P4,800 or synonymous to at least twenty-four (24) monthly membership savings
- Has submitted at least one membership saving for the past six months prior to the date of application for the loan
- If presently enrolled with another loan from PAG-IBIG, the account should at least not be in default with the existing loan at the time of application
- For the still-existing multi-purpose salary loan or calamity loan borrowers, the account must not be in default with the loan as of application time
- Sufficient proof of income must be presented
How much can an entitled member borrow?
A valid member for the loan can borrow an amount not exceeding 80% of his or her Accumulated Total Value (ATV). The amount varies from person to person but the longer the member had been actively paying his membership dues, the larger the amount he could potentially borrow.
For members with an existing loan, the amount he could borrow would be dependent upon the outstanding balance of his present loan in addition to the remainder of his ATV (not surpassing 80% of the total).
How much is the interest rate?
The official pamphlet typically withholds the information about the interest rate which comes with the loan. However, other references claim that the Multi-Purpose Salary Loan should be around 10% but not reaching 11%.
In comparison to banks, this is considered the lowest interest rate for a loan in the country.
How long is the payment term?
The loan is designed to be paid in installments across the span of twenty-four (24) months or 2 years and with a grace period of two (2) months.
How can the borrower receive his loan?
There is no single way by which an entitled member can claim his loan. Commonly, a loan can be acquired via the following modes:
- Borrower’s disbursement card
- Borrower’s bank account
- Payable check
- Other acceptable modes of payment
How can the borrower make repayments?
There are two types of PAG-IBIG members that are eligible for the Multi-Purpose Salary Loan: employed individuals and individual payors.
For employed persons, the loan can be automatically repaid by means of salary deductions. On the other hand, individual payers can make payments via over-the-counter transactions.
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