Pag-IBIG upgrades multi-purpose loan

MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG, has increased the cash loan entitlement of its members and the flexibility of payment terms.

In a statement, Pag-IBIG said it upgraded its Multi-Purpose Loan (MPL), allowing Filipinos to borrow more and qualify sooner for cash loans.

Specifically, members can now borrow up to 90 percent of their total Pag-IBIG regular savings from the previous 80 percent as part of efforts to boost access to financial resources when needed most.

For members with upgraded regular savings, this means they can secure larger loans, as loan entitlement is directly based on total savings.

The improved MPL also enhanced eligibility requirements as members can now qualify after contributing for 12 months, down from the previous 24-month condition. This would allow newer members to access funds for immediate financial needs.

Further, the upgraded MPL introduced 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 based on their financial capacity.

Pag-IBIG Fund CEO Marilene Acosta said that even with the enhancements, cash loans remain affordable with a monthly interest rate of only 1.45 percent.

“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,” Acosta said.

The enhancements also apply to other Pag-IBIG short-term loan programs, specifically the Health and Education Loan Programs and the calamity loan.

The new MPL will become available to members starting May 16.

Last year, Pag-IBIG released a record P70.3 billion in cash loans to more than 3.2 million members.

For 2025, Pag-IBIG aims to assist an estimated 3.6 million members with projected cash loan releases reaching P95.3 billion.