Pag-IBIG provides the Multi-Purpose Loan (MPL) , Calamity loan, and home loans. To be eligible for these loans, you must be an active member who makes regular deposits. The amount of money you have saved in your savings accounts will determine the amount of loan you receive.
Types of Pag-IBIG loans
Housing Loan. You can take out a housing loan for up to ₱6 million with low-interest rates. You can use this loan to pay for a residential home and lot, a townhouse, condominium unit, construction, remodeling of a home, or refinancing an existing mortgage.
Short-term loans. These loans are either the Multi-Purpose Loan (MPL) or Calamity Loan. MPL is a cash loan designed to help members with an immediate financial need up to 80% of their Pag-IBIG Regular Savings and can be processed in as fast as 2 days. It also has a low annual interest rate of 10.5%.On the other hand, a Calamity loan assists Pag-IBIG Fund members who reside in areas declared under a state of calamity and are affected by such disasters. It comes at a low-interest rate of 5.95% per annum, is payable within 36 or 24 months, and has a deferred first payment. However, you must apply for a Pag-IBIG Calamity loan 90 days after the President's Office or the Sangguniang Bayan for your region of residency declares a state of calamity.
How to apply?
Once your account is active, you can use the Internet or a branch to apply for a Pag-IBIG loan. To apply for a Pag-IBIG calamity and MPL loan, obtain the STL acknowledgment receipt (HQP-SLF-121) and submit the completed loan application form along with the needed documents. Wait until the loan proceeds are disbursed to your account on the scheduled date.
Requirements for a Pag-IBIG loan
You must fulfill the following requirements to be eligible for a Pag-IBIG loan:
You should have saved at least one monthly membership fee for the six months preceding the loan application date.
Your accounts must not be in default if there are any Pag-IBIG Housing Loans, MPLs, or Calamity Loans already in place.
You must provide a completed original application form for a Multipurpose or a Calamity Loan application Form.
You must have one photocopy of a valid ID.
If employed, you must have a certificate of net pay or a photocopy of one month's most recent paystub that has been duly authenticated by the company's authorized signatory, like the human resource manager.
You must provide proof of income through a bank statement or passbook for the previous 12 months if your income comes from a pension, an overseas remittance, or one original.
Filipinos working abroad must provide proof of income, such as an employment contract or an authentic POEA standard contract.
You must provide a Certificate of Employment and Compensation (CEC).
You must have an income tax return filed with the host country or the government one original.
List of some of the acceptable IDs
Passport
Driver's license
Professional Regulation Commission (PRC) ID
National Bureau of Investigation (NBI) Clearance
Police Clearance
Postal ID
Voter's ID
Barangay Certification or Barangay IDs or similar documents bearing a picture of the member
Government Service Insurance System (GSIS) e-Card
Social Security system (SSS) Card
Senior Citizen Card
Overseas Workers Welfare Administration (OWWA) ID
Overseas Filipino Worker ID
Pros and cons
According to the EON Group's 2021 Philippine Trust Index (PTI), Pag-IBIG Fund was the most-trusted government-run corporation. The Fund also increased house loans by 49%, releasing more than ₱65 billion in home loans from January to September 2021. Because they are offered by the government, Pag-IBIG loans may be among the most popular in the Philippines. However, there are also cons to this type of loan.
Pros
You can renew your MPL after paying the equivalent of six monthly amortizations.
Your loan repayment includes a postponed first payment.
Cons
You have only 90 days after the proclamation of a state of calamity by the President's Office or the Sangguniang Bayan for your region of residence to apply for the Pag-IBIG Calamity Loan.
You get a reduced loan amount for a second credit amount since the remaining balance is deducted from the new one.
How to repay?
You may set up a salary deduction plan with your employer to pay your loan amortizations if employed. You can also pay your loan amortizations using Virtual Pag-IBIG or at any Pag-IBIG Fund branch.