Pag-IBIG Multi-Purpose Loan (MPL)
The Pag-IBIG Multi-Purpose Loan (MPL) is a lending program offered by the Pag-IBIG Fund. It is treated as separate and distinct from the Calamity Loan program.
How much can I borrow from Pag-IBIG MPL?
Loan Amount: The amount a qualified member can borrow is the lowest of the following:
- 1. Desired Loan Amount.
- 2. Loan Entitlement, which is equivalent to eighty percent (80%) of the member’s Total Accumulated Value (TAV). If the borrower has an existing calamity loan, the loanable MPL amount is the difference between 80% of their TAV and the outstanding balance of their calamity loan. In no case shall the aggregate Short-Term Loan (STL), which includes MPL and Calamity Loans, exceed 80% of the borrower’s TAV.
- 3. Capacity to Pay, meaning the loanable amount is limited so that the borrower’s Net Take Home Pay (NTHP) does not fall below the minimum requirement prescribed by the General Appropriation Act (GAA) or company policy, whichever applies. The member authorizes Pag-IBIG Fund to compute a lower loanable amount if the resulting monthly net take home pay falls below the required minimum after deducting the computed monthly amortization.
How will I know if quality for MPL?
Eligibility Requirements: To be eligible for an MPL, a Pag-IBIG Fund member must satisfy several requirements:
- Have made at least 24 monthly membership savings (MS). A member who previously withdrew MS due to maturity or optional withdrawal may apply if they have subsequently accumulated 24 MS or its equivalent from the withdrawal cut-off date. A member who doesn’t meet the 24 MS requirement may still avail of an MPL if their total savings are at least equivalent to 24 MS at their applicable rate.
- Have made at least one (1) MS within the last six (6) months prior to the loan application date.
- If they have an existing Pag-IBIG Housing Loan, the account must not be in default as of the application date.
- If they have existing MPL and/or Calamity Loan, the account(s) must not be in default as of the application date.
- Have sufficient proof of income.
How can I apply for MPL?
- Application Process:
- Applicants must secure the Multi-Purpose Loan Application Form (MPLAF) from any Pag-IBIG Fund Branch or download it from the Pag-IBIG website.
- One copy of the application form must be accomplished. The form requires entries to be typed or printed, preferably in block or capital letters, with all mandatory fields filled out or marked N/A if not applicable.
- For loan proceeds released through a Payroll Account/Disbursement Card, a photocopy of the card or a deposit slip for a newly-opened account should be attached.
- The accomplished application form and required documents are submitted to any Pag-IBIG Fund Branch. Processing begins only upon submission of complete documents.
How much is the interest rate?
- Interest Rate: The loan is charged with an interest rate of 10.5% per annum (equivalent to 17.5% based on diminishing principal balance). Interest is charged during the grace period and is amortized equally over the loan term.
How long is the loan term?
- Loan Term: The loan is repaid over a period of two (2) years or three (3) years, based on the member’s option during application. There is a grace period of two (2) months. If the chosen loan term is not indicated, the default term is three (3) years.
What should be the purpose?
- Loan Purposes: The MPL can be used for various purposes, which may be non-housing or housing related:
- Non-Housing Related: Livelihood/additional capital in small business, Tuition/Educational Expenses, Payment of utility/credit card bills, Purchase of appliance & furniture/electronic gadgets, Vacation/travel, Special events, Car repair, Health & wellness, or others.
- Housing Related: Minor home improvement/home renovation/upgrades, or others.
How are the loan proceeds released?
- Loan Release: Proceeds can be released through:
- Crediting to the borrower’s disbursement card or Loyalty Card Plus.
- Crediting to the borrower’s bank account through LANDBANK’s Payroll Credit Systems Validation (PACSVAL).
- Check payable to the borrower (though unclaimed checks after 30 days may be cancelled and the loan reversed).
- Other acceptable modes of disbursement.
How can I pay my loan?
- Repayment is in equal monthly payments covering principal and interest over the loan period.
- Payments are preferably made through salary deduction, authorized by the member and agreed upon by the employer.
- Self-employed members, OFWs, or other individual payors make payments over-the-counter or through other approved modes.
- Monthly payments are remitted to the Fund on or before the fifteenth (15th) day of each month, starting on the third (3rd) month following the date on the DV/check or manual disbursement voucher. If the due date is a non-working day, payment is due on the first working day after the due date.
- If a borrower is unable to pay through salary deduction due to circumstances like suspension from work, leave of absence without pay, or insufficient take-home pay, payments should be made directly to the Pag-IBIG Fund office.
- Payments are applied in the following order of priority: Penalties, Interest, and Principal.
- Borrowers may fully pay the outstanding balance before loan maturity.
- Amounts paid in excess of the required monthly amortization are applied to succeeding amortizations.
What are the penalties?
- Penalties: A penalty of 1/20 of 1% of any unpaid amount is charged to the borrower for every day of delay. For borrowers paying through salary deduction, penalties may be reversed upon proof that non-payment was the employer’s fault, in which case the penalties are charged to the employer. Employers who fail to remit deducted amortizations face a penalty of 1/10 of 1% per day of delay.
- Default: A borrower is considered in default in any of the following cases:
- Any willful misrepresentation in any related documents.
- Failure to pay any three (3) consecutive monthly amortizations.
- Failure to pay any three (3) consecutive Pag-IBIG monthly savings.
- Violation of any Pag-IBIG Fund membership, STL, or housing loan policies, rules, regulations, and guidelines.
- Effects of Default: In the event of default, the outstanding loan obligation becomes due and demandable. The outstanding obligation is deducted from the borrower’s TAV after collection efforts. Immediate offsetting against TAV may be effected upon request for certain justifiable reasons, including total disability or insanity, separation from service by reason of health, death of an immediate family member, unemployment due to layoff/company closure, critical illness (cancer, organ failure, heart/stroke/neuromuscular illness), repatriation of OFW, and other approved meritorious grounds.
- Membership Termination: If membership terminates before loan maturity, any outstanding loan balance (including unpaid interest, penalties, and charges) is deducted from the TAV and/or any amount due to the member or beneficiaries in the Fund’s possession. In case of death, the obligation is computed up to the date of death, and payments received after death are refunded to beneficiaries.
- Loan Renewal: A borrower may renew their MPL after paying the equivalent of six (6) monthly amortizations, not earlier than the sixth monthly amortization due date, provided they meet eligibility requirements. The new loan proceeds are first applied to the outstanding balance of the existing MPL, and the net proceeds are released to the borrower. Full payment before maturity allows application for a new loan anytime thereafter. If TAV offsetting occurred due to default, renewal depends on the number of amortizations paid before default: if at least six were paid, a new loan can be applied for immediately after offsetting; if less than six were paid, a new loan can only be applied for after two (2) years from the date of TAV offsetting.
How is my data protected?
Data Privacy and Waivers: By applying, the member waives rights under R.A. No. 1405 (Secrecy of Bank Deposits Act) and authorizes Pag-IBIG Fund to verify/validate their payroll account/disbursement card. The member also authorizes disclosure of account information to legal and government agencies, banks, partner-merchants, or third parties in accordance with R.A. No. 9510 (Credit Information System Act), R.A. No. 10173 (Data Privacy Act of 2012), and other laws. Credit information may be transferred to service providers like the Credit Information Corporation and Bankers Association of the Philippines – Credit Bureau.
The form also includes spaces for details such as Pag-IBIG MID No., Application No., personal information (name, date/place of birth, mother’s maiden name, nationality, sex, marital status, citizenship), contact information (addresses, phone numbers, email), taxpayer information (TIN, SSS/GSIS No.), employment details (employer name/address, employee ID, date of employment, source of fund, nature of work), and previous employment history. A Certificate of Net Pay section is also included, requiring details on basic salary, allowances, deductions, gross monthly income, and net monthly income, certified by the Head of Office or Authorized Signatory.
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