What You Need to Know about PAG-IBIG’s Multi-Purpose Loan

You’ll never know what would happen tomorrow, next week, by the end of the month, or three years from now. That is why it is important to prepare for what could possibly happen to make sure you could get back up.

We know. You have responsibilities, tons of expenses to pay, and mouths to feed. In fact, you barely have nothing left every month that you can set aside for savings. In case you need immediate funds, you turn to relatives and friends, hoping that they could lend you some, no matter how small the amount is.

What if they can’t lend you money? In that case, you might want to turn to PAG-IBIG through its Multi-Purpose Loan or MPL. This facility is offered by PAG-IBIG to all its active and qualified members to help augment financial needs.

The best part is you are given two months grace period, which means you will only start paying on the third month from the time of your loan application. For instance, you applied for and was approved on January. Payment will only start on March.

In case you are interested, here’s what you need to know about it:

Multi-Purpose Loan Features:

  • Loan Amount: Your desired loan amount OR 80 percent of Total Accumulated Value (TAV), whichever is LOWER. Your capacity to pay will likewise be considered on the approved loan amount to ensure that your net take home pay will not be below the minimum requirements prescribed by the General Appropriations Act (GAA).
  • Interest Rate: 10.5 percent per annum, with the rate equalized over the duration of the loan.
  • Loan Term:  Maximum of 24 months with grace period of two months
  • Loan Renewal: MPL may be renewed after payment of at least six monthly amortizations.
  • Loan Release: Loan proceeds may be credited to your disbursement card, OR bank account through Land Bank, OR check under your name, OR any other legitimate modes of disbursement.
  • Loan Repayment: The MPL will be paid in equal monthly payments, which covers both principal and interest, and to be deducted on your monthly salary. If you contribute voluntarily or an OFW, payment must be done over-the-counter and every 15th of the month starting on the third month. You can check this guide on PAG-IBIG Payment Facilities.
  • Penalty Fee: 1/20 of one percent of the unpaid amount per day.
  • Early termination of MPL is loan with no pre-termination fee.
  • Failure to pay monthly amortization or monthly contributions for three consecutive months constitutes default. As a result, the loan obligation becomes due and demandable.

Purpose/s of MPL:

  • Health and wellness
  • Minor home improvement, upgrades, or renovation
  • Educational expenses
  • Livelihood or additional working capital for business
  • Car repair
  • Special events
  • Purchase of appliances or gadgets
  • Payment of bills
  • Additional funds for vacation or travel
  • Medical

In other words, you can use PAG-IBIG’s Multi-Purpose Loan for whatever purpose it might serve you. If you are thinking of buying a new house or to finance your business, then there is a separate loan facility for that.

Who are eligible to apply for MPL? 

  • Member who has made at least 24 monthly membership savings or MS. If you have withdrawn or stop contributing to PAG-IBIG, then you can still apply for MPL provided that you will pay an equivalent of 24 monthly contributions.
  • Has made at least one month contribution for the last six months prior to the date of the loan application.
  • Has sufficient proof of income.

In case you have existing Housing Loan, MPL, or Calamity Loan, you can still apply for Multi-Purpose Loan provided that the account/s must NOT be in default at the time of the loan application.

How to Apply for PAG-IBIG’s Multi-Purpose Loan:

  1. Fill out the application for Multi-Purpose Loan. You can get a copy at any PAG-IBIG branches or get a copy here.
  2. Submit your loan application to the nearest PAG-IBIG branch.
  3. Submit other documents such as valid government-issued ID and photocopy of payroll account, disbursement card, or bank account for disbursement.
  4. Wait for the PAG-IBIG representative to give you a feedback regarding the status of your loan application.

Are you ready to apply?


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