Five good reasons to avail of the Pag-IBIG Multi-Purpose Loan
There are instances when you need cash to pay your children’s tuition fees, for rent and other utility bills, when doing a minor home renovation, buying new appliances, purchasing medicine, paying off debts, when going on a vacation, or even as a capital for a startup business. However, because life is unpredictable, sometimes immediate cash is needed for unfortunate events like medical bills, unexpected car repair, and other emergency expenses. If you need money right away for something that needs immediate attention and when no other alternative is available, the Pag-IBIG Multi-Purpose Loan (MPL) could save the day.
A Pag-IBIG MPL can be used for practically any need you have as it is a cash loan designed to help qualified Pag-IBIG Fund members with any immediate financial need. Here are five reasons why a Pag-IBIG MPL is worth it:
1. Hassle-free loan application. Pag-IBIG MPL is easy to apply for. If you want to avail of it over the counter, you may personally submit your duly accomplished loan application form and requirements at the Pag-IBIG Fund branch nearest you. However, if you are not keen on braving the traffic and the queue, you may also apply online. Simply upload your accomplished loan application form and requirements or complete the Pag-IBIG MPL application online form to the Virtual Pag-IBIG page at the Pag-IBIG website, or through the Virtual Pag-IBIG Mobile app. Employed members may also course their loan application through their employers.
2. If you have reached at least 24 monthly savings, you are eligible for a loan. You may avail of the MPL if you have paid or accomplished at least 24 monthly membership savings under the Pag-IBIG Regular Savings program. Also, one must simply be an active member, by having at least one monthly membership savings within the last six months prior to the date of loan application. This loan does not demand any collateral and requires minimal paperwork compared to other types of loans, and you may get the amount that you applied for within two to three business days.
3. Loanable amount is up to 80% of your total contributions. If you are a qualified member, you may borrow up to 80% of your total Pag-IBIG Regular Savings, which consist of your monthly contributions, your employer’s contributions, and accumulated dividends earned. This means that the more you save in your Pag-IBIG Regular Savings, the higher loan amount you may apply for via the MPL! And yes, you may still apply for a Pag-IBIG Multi-Purpose Loan even if you have existing loans with Pag-IBIG, like a Calamity Loan. If you are to get a Pag-IBIG MPL while you have an existing Calamity Loan, your loanable amount will be the difference between your current loan balance and 80% of your total Pag-IBIG Regular Savings.
4. Low interest rates. The Pag-IBIG MPL comes with easy repayment options and affordable interest rates valued at only 10.5 % per annum which is much lower than similar cash loans. For instance, if the number of contributions completed upon application is 60 months, you may just multiply it by the usual monthly Pag-IBIG contribution which is PHP200, add the annual dividends your savings have earned, then multiply the total by 80 percent. The result would be: (60 x 200 + Dividends Earned) x .80 which would be at least PHP10,000. The good thing is, the amount of loan you can avail of increases as your monthly contributions increase. It is also worthy to note 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.
5. Easy payment options. Pag-IBIG MPL comes with easy payment schemes. In fact, you can pay your loan within three years (or 36 months), with a bonus of 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 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 the accredited collecting partner outlets or their online payment channels. If you are self-employed or an Overseas Filipino Worker (OFW), you have the choice to pay your loan amortizations via Virtual Pag-IBIG, or through the online payment channels of Pag-IBIG’s accredited collecting partners.
What’s more, you may renew your Pag-IBIG MPL after paying an amount equal to at least six amortizations monthly and upon satisfying the eligibility requirements. The outstanding balance of your existing loan shall be deducted from the loan proceeds of your new loan.
So, is getting a Pag-IBIG MPL worth it? Members who have borrowed have become testimonies that it is the right move. Just remember that this cash loan should be able to help you financially and improve your way of living, instead of becoming a burden putting you into an even bigger debt. Being a responsible borrower by using your Pag-IBIG MPL loan sensibly and focusing on the reason why you availed of it in the first place—whether it is for paying bills or for emergency reasons—and making timely payments, will help you manage your overall finances.
Ready to apply for the Pag-IBIG Multi-Purpose Loan? Click here: https://www.pagibigfundservices.com/virtualpagibig/STLReminder.aspx. To know more about Pag-IBIG MPL, check out this Pag-IBIG FAQ to get some answers: https://www.pagibigfund.gov.ph/FAQ_MPL.html.