Pag-IBIG hikes multi-purpose loan cap, eases members’ access
MANILA, Philippines — The state-controlled Pag-IBIG Fund has upgraded its popular Multi-Purpose Loan (MPL) to allow members to borrow up to 90 percent of their savings and qualify sooner.
This is to affirm to “dedication to supporting the financial needs of Filipino workers,” Pag-IBIG said in a statement on Wednesday.
The new limit marks a 12.5-percent increase than the previous threshold of 80 percent.
For members with upgraded regular savings, this means they can secure even larger loans, as loan entitlement is directly based on their total savings.
These enhancements—higher loan amounts and shortened eligibility—also apply to other Pag-IBIG Short-Term Loan programs, specifically the Health and Education Loan Programs (HELPS) and the Calamity Loan.
12-month requirement
In addition to higher loan amounts, eligibility requirements have been enhanced. Members now qualify after contributing for just 12 months, down from the previous 24-month requirement.
This makes it easier for newer members to access funds for their immediate financial needs.
Meanwhile, members with existing loans under the previous guidelines may still apply for an additional loan under the enhanced Pag-IBIG MPL, should they require extra funds as a result of the increased loan entitlement.
The enhancements shall become available to members starting May 16.
“We are continually enhancing our loan programs in response to what our members need most,” said Secretary Jose Rizalino Acuzar, chair of the 11-member Pag-IBIG Fund Board of Trustees and head of the Department of Human Settlements and Urban Development.
“These latest improvements are aligned with President Marcos’ directive to deliver affordable and accessible
financial services to Filipino workers. By offering bigger loans and reducing the eligibility period, we are making sure that more members can benefit quickly and effectively from the MPL.”
The upgraded Pag-IBIG MPL also introduces a new one-year repayment term, complementing the existing two- and three-year options. This additional term provides greater flexibility, allowing members to tailor their loan repayments to their individual financial capacity.
Monthly rate of 1.4583%
Pag-IBIG Fund CEO Marilene Acosta highlighted that amid these enhancements, the loan remained affordable, with a competitive monthly interest rate of only 1.4583 percent.
Additionally, majority of interest earned from MPL repayments is returned to members as dividends,
further benefiting them.
“Our enhanced MPL reflects Pag-IBIG Fund’s commitment to financial inclusivity and responsiveness to the needs of our labor sector,” Acosta said.
“We know members rely on these loans to start a small business, pay for tuition fees, cover medical expenses, undertake minor home improvements, or purchase furniture and other necessities. These changes mean our members can now more easily achieve their financial goals with greater ease and convenience.”
P70B disbursed in 2024
READ: Pag-Ibig Fund extends low housing loan rates until June
In 2024, Pag-IBIG Fund released P70.3 billion in cash loans to more than 3.2 million members—the highest amount disbursed in a single year— underscoring the strong and growing trust of members in the program and the agency.
Pag-IBIG Fund aims to assist an estimated 3.6 million members in 2025, with projected cash loan releases
reaching P95.3 billion, as it continues to expand its reach and deliver accessible financial support to more Filipino workers.
“We strive to continuously evolve and respond effectively to the changing financial needs of our members,” Acosta added. “With these MPL enhancements, Pag-IBIG Fund further solidifies its role as a reliable partner in empowering Filipino workers toward greater financial stability and peace of mind.” – Doris Dumlao-Abadilla
