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How to Apply and Get a Pag-IBIG Multi-Purpose Loan

Fri, 10/14/2022 - 17:16

When the going gets tough, many Filipinos look to other sources of income or even start their own businesses to get by and foot their bills. It’s a great plan, considering the actual salary that most of the working population get is just enough to tide them through the barest of necessities each month. Nonetheless, did you know that there still are quite a few helpful benefits extended to salaried or employed Filipinos?


We know how stressful it can get for employed Filipinos especially when unforeseen incidents happen. For such trying times like emergencies, you can also enlist the help of Pag-IBIG to give you a cash loan by applying for their Pag-IBIG salary loan.


Do government loans sound like additional stress? No worries, we’ll break it down for ‘ya, hun!




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What is a Pag-IBIG Multi-Purpose Salary Loan (MPL)?

The Pag-IBIG Multi-Purpose Salary Loan is a cash loan that is open to all members of Pag-IBIG. What’s really awesome about this loan is that if you qualify for it, you can borrow a maximum of 80% of your total contribution to Pag-IBIG and you can claim your approved loan in just 2 days. Talk about fast! Another great feature of the Pag-IBIG Multi-Purpose Salary Loan is that it does exactly as it says it does. Say what?


It's a multi-purpose loan because you can apply it for various uses:


  • Utility bills
  • Credit card balances
  • Home improvement
  • Education-related expenses like tuition fees and other miscellaneous fees required by schools
  • Medical expenses
  • Travel expenses
  • Business capital
  • And other special events

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Pag-IBIG Multi-Purpose Loan Requirements and Eligibility

Pag-IBIG members must first qualify to be able to get approved for a Pag-IBIG Multi-Purpose Loan. We’re giving you the full list here, which you can also find on their website .


FIRST, you have to meet the criteria for eligibility. You must have:

  • A total Pag-IBIG Fund savings of PHP 4,800 or at least 24 monthly Membership Savings (MS)
  • Made at least one Membership Savings within the last six months, as of month prior to date of loan application; and
  • Submit sufficient proof of income


To apply for the Pag-IBIG MPL, you must have the following requirements on hand:

  • Photocopies of two valid photos and two signature-bearing IDs
  • Latest payslips equivalent to a month’s wage
  • A completed Pag-IBIG Multi-Purpose Loan Application form


Also, do prepare to have the following information from your employer as the application form will require the data below:

  • Signature of Office Head/ or Authorized Representative
  • Employer/Company Name
  • SSS/GSIS No.
  • Agency Code and Branch Code


Once you have all of these, submit your documents to your HR department and coordinate your application with them. If you’re self-employed, visit a Pag-IBIG branch near you and have your documents processed for approval.


You can also apply for loan renewal later on, though it will require six months’ worth of payments toward your existing loan plus the outstanding balance with accumulated interest. Penalties and charges will be deducted from the new amount you take out.


The borrower’s penalty will be charged with 1% of the unpaid amount for each day of non-payment.

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Step-by-Step Guide on How to Apply for Pag-IBIG MPL

There are two ways to apply for a Pag-IBIG Multi-Purpose Loan: online or Over-The-Counter (OTC).


Digital or online application process:

  1. Upload the accomplished MPL form and complete requirements.
  2. Complete the Pag-IBIG MPL application online form, for members whose employers are enrolled under the Virtual Pag-IBIG for Employers. Do note that this is only for Pag-IBIG Loyalty Card Plus members.


OTC application process:

  1. Submit the MPL application form and the complete set of requirements to the nearest Pag-IBIG branch.
  2. Make sure to claim your receipt
  3. Claim your loan amount on the scheduled date.


Unlike pre-pandemic days when applications for most use cases with the government had to be done in person, applying for a Pag-IBIG MPL can be done conveniently online.


You can apply for a Pag-IBIG Multi-Purpose Loan and other short-term loans using the Virtual Pag-IBIG platform. Just register for an account and apply for a multi-purpose loan from there.

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How to claim your Pag-IBIG Multi Purpose Loan?

When you receive approval for your Pag-IBIG Salary Loan application, you may choose from any of the following modes of loan release:

  • Crediting to your disbursement card
  • Check issuance
  • Bank transfer through Land Bank, DBP, or UCPB cash card
  • Loan issuance to your Pag-IBIG Loyalty Card Plus


Pro tip on getting your Pag-IBIG MPL quicker than usual:

  • Make sure to gather all your previous work information so it’s quicker for the Pag-IBIG team assigned to check your requirements to assess all your data and decide if you qualify for the loan.

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Pag-IBIG Multi Purpose Loan FAQs

  • How much can I loan in Pag-IBIG multi-purpose loan for the first time?

Contributing members of Pag-IBIG can borrow as much as 80% of their Pag-IBIG regular savings. To get the actual amount, you would have to multiply your monthly contribution with your membership term and then apply the 80% loan factor.


For example, an individual who has been a Pag-IBIG member for 15 months can only loan PHP 1,800. The computation is as follows:


15 months (total Pag-IBIG membership contribution) x PHP 200 (monthly contribution) x .60

The amount you can loan increases as your monthly contributions increase, and so does the loan factor, so our tip here is to wait a couple more months, even a few years, to get the most out of your PAG-IBIG benefits.


  • How much is the interest of a Multi-Purpose loan in Pag-IBIG?

The MPL comes at a low interest rate of 10.5 percent per annum.

It is worth noting that a significant part of the income derived by Pag-IBIG Fund from the MPL’s interest is returned to its members in the form of dividends.


  • Can I avail of a loan from Pag-IBIG without work?

Yes, luv! You can. For self-employed members, as long as you have a Pag-IBIG Loyalty Card Plus or cash cards, you can apply for a Pag-IBIG salary loan.


Make sure you complete your loan application form and submit it along with the list of requirements. Note that your business must be enrolled in the Virtual Pag-IBIG for employers to complete your application.


For self-employed Members with a Pag-IBIG Loyalty Card Plus or cash cards can also apply for a Pag-IBIG salary loan by uploading the duly accomplished loan application form and all other requirements. However, members with a Pag-IBIG Loyalty Card can only complete the application form online if their employer is enrolled in the Virtual Pag-IBIG for Employers.


  • Can we process the Pag-IBIG loan online?

Yes, hun! You can do this by going to the Virtual Pag-IBIG page for members and doing the following:


  1. Upload your completed form and requirements
  2. Fill out the online form


  • How to repay your Pag-IBIG loan?

The loan is payable within three years or 36 months and comes with a deferred first payment. Members may also opt to pay their loans in two years or 24 months.


If you are an employed member, you may pay your loan amortizations via a salary deduction arrangement with your employer. Should you wish to accelerate or advance your payments, you may do so via Virtual Pag-IBIG, at any Pag-IBIG Fund branch near you, or through any of our accredited collecting partners’ outlets or their online payment channels.


If you are a self-employed individual, you can pay your loan amortizations via Virtual Pag-IBIG, at any Pag-IBIG Fund branch near you, or through any of our accredited collecting partners’ outlets or their online payment channels.



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