The Pag-IBIG Multi-Purpose Loan (MPL) is a short-term loan program by the Home Development Mutual Fund (HDMF), commonly referred to as Pag-IBIG, designed to provide short-term financial support to members with immediate financial needs. Whether you’re facing medical expenses, planning home improvements, or covering tuition fees, the MPL offers a convenient way to access funds based on your Pag-IBIG Regular Savings. Members can borrow up to 80% of their savings, with applications processed in as fast as two days.
Understanding how the MPL works is essential for those seeking financial flexibility. This guide details the MPL loan application process, eligibility, required documents, and application methods, ensuring a seamless experience for all members.
MPL Loan Features and Benefits
The Pag-IBIG Multi-Purpose Loan (MPL) is a financial assistance program designed to help Pag-IBIG Fund members meet immediate needs, such as education, medical expenses, or home repairs. It allows eligible members to borrow up to 80% of their total savings with affordable interest rates and flexible repayment terms.
Key Features:
Some of the notable features offered by the Pag-IBIG MPL Program to those who are interested in applying include:
- Borrow up to 80% of your total Pag-IBIG Regular Savings.
- For members with existing Pag-IBIG Calamity Loans, the maximum loanable amount is adjusted by subtracting the outstanding balance of the calamity loan.
- Low interest rate of 10.5% per annum.
- The MPL features a competitive 10.5% annual interest rate.
- Flexible repayment terms of 24 or 36 months.
- Borrowers can repay the loan over 24 or 36 months, with a two-month grace period before the first payment is due.
- Quick processing time, with loan proceeds released in as fast as two days.
Benefits:
Other benefits associated with the Pag-IBIG MPL are as follows:
- Funds can be used for various purposes, such as medical expenses, education, home improvements, business capital, and more:
- Medical bills
- Minor home renovations
- Business capital
- Tuition and school-related fees
- Utility and credit card payments
- Travel and special events
- Appliance or gadget purchases
- Car repairs
- Deferred first payment, providing financial breathing room.
- There is a two-month grace period before the first payment is due.
- Convenient payment options
- Salary Deduction: For employed members.
- Direct Payment: Available via Virtual Pag-IBIG, partner payment centers, or Pag-IBIG branches for self-employed members and Overseas Filipino Workers (OFWs).
- A portion of the interest income contributes to members’ dividends.
- Part of the income from loan interest is distributed back to members in the form of dividends.
- Renew the loan after paying six monthly amortizations.
- Members may apply for renewal after paying at least six months of amortizations. Any outstanding balance is deducted from the new loan proceeds.
Target Beneficiaries
The program is designed to assist active Pag-IBIG Fund members as well as the following groups:
- Employed Pag-IBIG members, including those in the private and government sectors
- Self-employed individuals actively contributing to the fund
- Overseas Filipino Workers (OFWs) registered with Pag-IBIG Fund
- Voluntary members, such as freelancers or non-salaried individuals
- Retired members or pensioners with remaining Regular Savings in their account
Eligibility Requirements
To qualify for the MPL, members must at least meet the following criteria:
- Membership Contributions:
- At least 24 months of membership savings.
- At least one monthly savings contribution within the six months prior to application.
- Loan Status:
- No default on any existing Pag-IBIG Housing, MPL, or Calamity loans.
- Proof of Income/Capacity to Pay:
- Necessary documentation must be submitted to verify the borrower’s ability to repay.
Note: Members who have withdrawn their savings due to maturity can reapply after accumulating 24 new contributions.
Documentary Requirements
Applicants need to prepare the following documents prior to application:
For Members
- Completed loan application form
- A photocopy of a valid government or privately-issued photo ID with signature
- Proof of income:
- Formally Employed: Payslip or Certificate of Net Pay (filled out by the employer)
- Self-Employed: Documents like Income Tax Returns (ITRs), bank statements, or notarized affidavits
- OFWs: Employment contract, Certificate of Employment, or tax returns from the host country
For Filing Through a Representative
- Authorization letter from the member
- Valid IDs of both member and representative
- Required income proofs based on the member’s employment status
Note: Originals must be presented for authentication when submitting photocopies.
How to Apply for a Pag-IBIG Multi-Purpose Loan (MPL)
Applying for this loan program is quite easy. There are two ways to apply for the Pag-IBIG MPL Program. These application methods include:
- Online via Virtual Pag-IBIG:
- Upload the completed application form and supporting documents.
- Available for members with a Loyalty Card Plus or specific partner cash cards.
- Over-the-Counter:
- Submit documents at a Pag-IBIG branch or through your employer.
Application Process
Regardless of the application method that you prefer, you can simply follow these steps to apply for the program:
Step 1. Prepare Documents:
- Accomplished MPL Application Form (HQP-SLF-065) available at https://www.pagibigfund.gov.ph/document/pdf/dlforms/providentrelated/SLF065_MultiPurposeLoanApplicationForm_V08.pdf.
- Valid ID
- Proof of income based on employment type (e.g., payslips, ITRs, or contracts).
Step 2. Submit Application:
- Provide the documents to Pag-IBIG directly or through an authorized representative.
Step 3. Receive Loan Proceeds:
- Approved loans are credited to the borrower’s account or disbursed via check.
Where to Secure the Application Form
You can secure the Pag-IBIG MPL application form through multiple channels, such as the Pag-IBIG Fund website (available via this link: https://www.pagibigfund.gov.ph/document/pdf/dlforms/providentrelated/SLF065_MultiPurposeLoanApplicationForm_V08.pdf), any Pag-IBIG Fund branch, or via their official mobile app. The form is free of charge, and there are no additional costs for accessing it. Once submitted with the required documents, processing typically takes one to three working days.
Video: Pag-IBIG Multi-Purpose Loan
The Pag-IBIG Multi-Purpose Loan is a reliable and accessible program for members seeking short-term financial support. With a borrowing capacity of up to 80% of your savings, competitive interest rates, and a streamlined application process, it offers a practical solution for various needs. Watch this short explainer video from Pag-IBIG to better understand the Pag-IBIG MPL application process, eligibility, and benefits. You can also learn more about how to access this financial support with flexible terms and competitive rates by visiting the Pag-IBIG branch nearest you or by exploring the Virtual Pag-IBIG website.