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Home > Benefits and Programs > Pag-IBIG Multi-Purpose Loan (MPL) Program
Pag-IBIG Multi-Purpose Loan (MPL) Program
HDMF Circular No. 56-H
LOAN PURPOSE
The program provides short-term financial assistance to Pag-IBIG members for the following purposes:
- minor home improvement
- livelihood
- medical
- education
- purchase of appliance and furniture
- other needs
BORROWER ELIGIBILITY
- Member must have made at least 24 monthly contributions;
- The minimum take home pay requirement of government employees shall be subject to the rules and regulations as provided for in the General Appropriations Act (GAA) while for employees working with the private sector shall be based on their respective company policies, if there is any.
- Members with active Fund membership at the time of application with the commitment from both the employee and employer to continuously remit contributions at least for the term of the loan
- For members who have withdrawn their membership contributions due to membership maturity, the reckoning date of the updated 24 monthly contributions shall be the first monthly contribution following the month the member qualified to withdraw his Pag-IBIG contributions due to membership maturity.
- Members who have active contributions under both the Pag-IBIG I and Pag-IBIG II Programs, the membership contributions under Pag-IBIG II shall be considered to meet the required 24 monthly contributions.
- For member with an outstanding Pag-IBIG housing loan may be allowed to avail of an MPL, provided that the account is not more than nine months in arrears and is not yet cancelled or foreclosed.
However, a member with an outstanding Pag-IBIG housing loan that is more than nine months in arrears but is not yet cancelled or foreclosed may be allowed to avail of an MPL, provided that the purpose of the MPL is to update his/her housing loan arrearages. The MPL proceeds to be applied on the housing loan arrearages shall be subject to the applicant's loan entitlement.
LOAN AMOUNT
An eligible borrower's loan entitlement shall depend on the number of contributions made, based on the following schedule:
| No. of Contributions |
Loan Amount
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| 24-59 months |
Up to 60% of TAV |
| 60-119 months |
Up to 70% of TAV |
| At Least 120 months |
Up to 80% of TAV |
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INTEREST RATE
10.75% per annum for the duration of the loan.
LOAN TERM
Maximum period of twenty-four (24) months with grace period of 2 months for local accounts and 5 months for centralized accounts.
Centralized accounts shall refer to employers that prepare the payroll in advance, usually at the head/central office. All other accounts not falling under the category of centralized accounts shall be classified as local accounts.
LOAN PAYMENT
- For employed members, payments shall be made thru salary deduction
- For voluntary members/individual payors, payments shall be made through any of the following modes:
- Salary deduction
- Over-the-Counter;
- Auto-debit arrangement with banks;
- Other modes that Pag-IBIG Fund may adopt in the future
PENALTY RATE
½% of any unpaid amount for every month of delay
For borrowers paying their loans through automatic salary deduction, penalties shall be cancelled/reversed only upon presentation of proof that non-payment was due to the fault of the employer. The said penalties shall then be charged against the employer.
LOAN RELEASE
Through a check payable to the borrower or shall be credited to the borrower's account through LANDBANK's Payroll Credit Systems Validation (PACSVAL
LOAN RENEWAL
Payment of at least six (6) amortizations.
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