GUIDELINES AND INSTRUCTIONS
A. Who May File
Any Pag-IBIG Fund member who satisfies the following requirements:
1. Has made at least 24 monthly membership savings (MS);
A member who has withdrawn his MS due to membership maturity or who has optionally withdrawn his
MS, cannot obtain an MPL unless and until after he has subsequently paid 24 MS following the month of
the said withdrawal.
A member, who does not meet the required 24 MS, may nevertheless, be allowed to avail of an MPL if his
total savings is at least equivalent to 24 MS at the rate applicable to him.
2. Has made at least one (1) MS within the last six (6) months prior to the date of loan application;
3. If with existing Pag-IBIG housing loan, the account must not be in default as of the date of application;
4. If with existing MPL and/or Calamity Loan, the account/s must not be in default as of date of application; and
5. Has sufficient proof of income.
B. How to File
The applicant shall:
1. Secure the Multi-Purpose Loan Application Form (MPLAF) from any Pag-IBIG Fund branch or download from
Pag-IBIG website at www.pagibigfund.gov.ph.
2. Accomplish 1 copy of the application form.
3. For releasing of loan proceeds through Payroll Account/Disbursement Card, attach photocopy of payroll
account/disbursement card/deposit slip (for newly-opened account).
4. Submit accomplished application, together with the required documents to any Pag-IBIG Fund Branch.
Processing of loans shall commence only upon submission of complete documents.
C. Loan Features
1. Loan Amount
A qualified Pag-IBIG member shall be allowed to borrow an amount based on the lowest of the following:
1.1 Desired Loan Amount
1.2 Loan Entitlement
The loan entitlement shall be equivalent to eighty percent (80%) of TAV. However, If the borrower has
an existing calamity loan, the loanable amount shall be the difference between the 80% of the borrower’s
TAV and the outstanding balance of his calamity loan.
1.3 Capacity to Pay
The loanable amount shall be limited to an amount which will not render the borrower’s Net Take Home
Pay (NTHP) to fall below the minimum requirement as prescribed by the General Appropriation Act (GAA)
or company policy, whichever is applicable.
2. Interest Rate
The loan shall be charged with an interest of 10.5% p.a. (equivalent rate of 17.50% based on diminishing
principal balance) with interest during the grace period and shall be amortized equally over the term of the
3. Loan Term
The loan shall be repaid over a maximum period of twenty-four (24) months, with a grace period of two (2)
4. Loan Release
The loan proceeds shall be released through any of the following modes:
a) Crediting to the borrower’s disbursement card;
b) Crediting to the borrower’s bank account through LANDBANK’s Payroll Credit Systems Validation
c) Check payable to the borrower. However, when the check remains unclaimed for a period of thirty (30)
calendar days from the DV/Check date, the loan shall be cancelled.
d) Other acceptable modes of disbursement.
5. Loan Payments
5.1 The loan shall be paid in equal monthly payments in such amounts as may fully cover the principal and
interest over the loan period. Said amortization shall be made, whenever feasible, through salary
5.2 For self-employed individuals, Overseas Filipino Workers (OFWs), or other types of individual payors,
monthly payments shall be paid over-the-counter or any other modes of payment approved by the Fund.
5.3 Payments shall be remitted to the Fund on or before the fifteenth (15
) day of each month, starting on the
) month following the date on the DV/check or manual disbursement voucher.
5.4 If the due date falls on a non-working day, the monthly amortization shall be paid on the first working day
after the due date.
5.5 The borrower may fully pay the outstanding balance of the loan prior to loan maturity.
5.6 The borrower shall pay directly to the Fund in case the borrower is unable to pay through salary deduction
for any of the following circumstances:
a. Suspension from work
b. Leave of absence without pay
c. Insufficiency of take home pay at any time during the term of the loan; or
d. Other circumstances analogous to the foregoing.
5.7 Payment shall be applied according to the following order of priorities:
a. Penalties; if any
b. Interest; and
5.8 Any amount in excess of the required monthly amortization shall be applied to succeeding amortizations
which will be posted on the next due date.
A penalty of 1/20 of 1% of any unpaid amount shall be charged to the borrower for every day of delay. For
borrowers paying through salary deduction, penalties shall only be reversed only upon presentation of proof
that non-payment was due to the fault of the employer. In such case, penalties due from the borrower shall
be charged to the employer. Non-remittance of the total loan amortization shall likewise subject the employer
with a penalty of 1/10 of 1% per day of delay of the amounts payable from the date the loan amortization or
payments fall due until paid.
The borrower shall be in default in any of the following cases:
a. Any willful misrepresentation made by the borrower in any of the documents executed in relation hereto.
b. Failure of the borrower to pay any three (3) consecutive monthly amortizations.
c. Failure of the borrower to pay any three (3) consecutive MS; or
d. Violation by the borrower of any of the membership/STL/housing loan policies, rules, regulations and
guidelines of Pag-IBIG Fund.
8. Effects of Default
In the event of default, the outstanding loan obligation shall become due and demandable. The outstanding
loan obligation shall be deducted from the TAV after exerting all collection efforts.
D. Other Provisions
1. The MPL and/or Calamity Loan programs shall be treated as separate and distinct from each other. Hence,
the member shall be allowed to avail of an MPL while he still has an outstanding calamity loan, and vice versa.
Application for loans on these two programs shall be governed by their corresponding guidelines. The
outstanding loan balance of the calamity loan shall not be deducted from the proceeds of the MPL.
2. In no case shall the aggregate STL exceed eighty percent (80%) of the borrower’s TAV.
3. A borrower may renew his MPL after payment of equivalent to six (6) monthly amortizations; not earlier than
the sixth (6
) monthly amortization due date; and provided that he meets the eligibility requirement. The
proceeds of the new loan shall be applied to the borrower’s outstanding MPL obligation and the net proceeds
shall then be released to him. In case of full payment prior to loan maturity, a borrower shall be allowed to
apply for a new loan anytime thereafter.
4. In the event of membership termination prior to loan maturity, the outstanding balance shall be deducted from
the borrower’s TAV and/or any amount due him or his beneficiaries in the possession of the Fund. In case of
borrower’s death, the outstanding balance shall be computed up to the date of death. Any payments received
after death shall be refunded to the borrower’s beneficiaries.
5. Offsetting of the borrower’s outstanding MPL balance against his TAV shall be effected immediately upon
approval of the borrower’s request; provided, such request is based on any of the following justifiable reasons
and has been verified by the Fund: Borrower’s unemployment; Illness of the borrower or any of his immediate
family members as certified by a licensed physician that, by reason thereof, resulted in his failure to pay the
required amortizations when due; or death of any of his immediate family members that, by reason thereof,
resulted in his failure to pay the required amortizations when due.
6. If TAV offsetting has been effected on the borrower’s defaulting MPL, he may apply for a new MPL provided
he has paid at least (6) monthly amortizations prior to default and its consequent offsetting against the
borrower’s TAV. However, if he has paid less than 6 monthly amortizations prior to default, he may apply for
a new loan only after two (2) years from the date of TAV offsetting.
D. Loan Renewal
E. Loan Renewal