At times, the urgent need for money may arise, may it be from an emergency situation within the family or an unforeseen natural disaster, one may find it hard to find a certain amount of money at such a short period of time. Good thing there are the se agencies that offer short-term loans at a low interest rate like the one offered by the Pag-IBIG Fund.
If you are interested to avail of the said loan program, you must satisfy all of these eligibility requirements:
- must be an active member of the Pag-IBIG Fund
- has made at least 24 monthly membership savings
– (If a member has withdrawn his monthly savings due to maturity or has optionally withdrawn his monthly savings cannot obtain a Multi-purpose loan unless and until he has subsequently paid 24 monthly membership savings following the months of the said withdrawal.)
- has made at least one monthly membership saving remittance within at least 6 months prior to the date of loan application
- If with existing Pag-IBIG fund Housing Loan, MPL and/or Calamity Loan, the account/s must not be in default
- Submission of sufficient proof of income.
The Multi-purpose Loan can be used in any of these purposes:
- Minor home improvement / Home renovation / Improvements
- Livelihood / Additional capital in small business
- Tuition / Education Expenses
- Purchase of Appliances and Furniture / Electronic Gadgets
- Payment of Utility / Credit card Bills
- Vacation / Travel
- Special events
- Car Repair
- Other Needs
How much will the Interest rate be for the loan?
The said Multi-purpose loan will be charged with an interest rate of 10.5% per annum.
How much can a member loan out of their savings?
The member is entitled to a maximum loanable amount equivalent to 80% of their total contribution to Pag-IBIG Fund. If the borrower has an existing calamity loan, the loanable amount will be the difference between the 80% of the borrower’s total contributions and the outstanding balance of their calamity loan.
What is the mode of payment for the loan?
Formally-employed members shall pay their amortization through salary deduction.
For self-employed individuals, overseas Filipino workers (OFWs), or other types of individual payors, monthly payments shall pay over-the-counter or through any other modes of payments approved by the Pag-IBIG Fund.
Did you know that there is an option to renew a Multi-purpose Loan?
A borrower may opt to renew their Multi-purpose loan after payment of equivalent to six monthly amortizations and upon satisfying the eligibility of the requirements.
The proceeds of the new loan shall be applied to the borrower’s outstanding Multi-purpose loan obligation and the net proceeds shall be released to them.
Have you experienced applying for a multi-purpose loan with Pag-IBIG fund? Share us your experiences through the comment section below.