1. What is the Multi-Purpose Loan?

The Multi-Purpose Loan (MPL) is a cash loan under Pag-IBIGs short-term loan program that aims to provide financial assistance to qualified members for:
House Repair
Minor Home Improvement
Home Enhancement
Tuition/ Educational Expenses
Health and Wellness
Livelihood
Other purposes

2. Who are eligible?

The loan is open to any Pag-IBIG member who:
Has made at least 24 monthly mandatory savings (MS)
Has 5 MS for the last 6 months prior to date of loan application
If with an existing Housing Loan and/or MPL and/or Calamity Loan, the account/s must not be in default prior to loan application.

3. How much can one borrow?

The borrowers loan value shall be a percentage of his Total Accumulated Value (TAV), to wit:
No. of monthly savings

Loan Value

24 59 months

Up to 60% of Total Accumulated

Value (TAV)

60 119 months

Up to 70% of TAV

At least 120 months

Up to 80% of TAV

However, an eligible borrowers loan shall be limited to an amount for which statutory deductions, monthly repayment of principal and
interest, and other obligations will render the borrowers net take home pay to fall below the minimum requirement as prescribed by the
General Appropriations Act (GAA) or company policy, whichever is applicable.
4. How much is the interest rate?
The loan shall bear a nominal interest rate of 10.75% per annum, paid equally for the duration of the loan.

5. What is the repayment period?

The loan shall be repaid over a maximum period of twenty-four (24) months, with a grace period of two (2) months. Payments must be
remitted to Pag-IBIG on or before the 15th day of each month starting on the 3rd month following the date on the DV/Check.

6. Will a member with an existing calamity loan still be allowed to avail of an MPL?
Yes, provided the calamity loan is not in default. The MPL and Calamity Loan programs shall be treated as separate and distinct from each
other. Hence, the member shall be allowed to avail an MPL while he still has an outstanding calamity loan and vice versa. However, in no
way shall the aggregate STL exceed 80% of the borrowers TAV.

7. How can one pay his MPL?

The loan shall be paid in equal monthly payments, through:
Thru salary deduction for employed members; or
Over the counter; via- auto-debit arrangements with banks or other modes the Fund may adopt, for self-employed/individual payors

8. When can a member renew his MPL?

A qualified borrower may renew his/her MPL after making 6 monthly amortizations. The proceeds of the new loan shall be net of the
outstanding balance of the existing loan.
9. What are the documentary requirements?
Duly accomplished Multi-Purpose Loan Application Form (MPLAF)
Photocopy of at least two (2) valid IDs
Proof of income
For Formally-employed
The Certificate of Monthly Net Income portion at the back of the application form must be accomplished by the employer or submit
photocopy of latest payslip duly authenticated by the companys authorized representative.
For Self-employed or Individual-payors
Photocopy of any of the following:
- Business Mayors Permit
- Commission Vouchers
- Other valid proof of income

10. How and where will the member submit their MPL applications?
For employed member- borrowers, they may file their applications through their Fund Coordinators or directly at any Pag-IBIG office
nationwide.
For individual payors, they must submit their applications and requirements to the branch office nearest them.

11. How will the loan proceeds be released to the borrower?

The MPL shall be released through any of the following modes, depending on the borrowers preference:
Disbursement Card, e.g. LBP Cash Card or Pag-IBIG Citi Prepaid Card
Landbanks Payroll Credit Systems Validation (PACSVAL)
Check
or other similar modes of payment

12. When will the loan be in default and what are its effect?
The borrower shall be in default in any of the following cases:
Any willful misrepresentation made by the borrower in any of the documents executed in relation to his/her MPL application
Failure of the borrower to pay any three (3) consecutive monthly amortizations
Failure of the borrower to pay any three (3) consecutive mandatory savings
Violation by the borrower of any of the policies, rules, regulations and guideline of Pag-IBIG Fund
In case of default, the outstanding loan obligation shall be become due and demandable. The outstanding obligation shall be deducted
from the TAV credited to the borrower, and/or Modified Pag-IBIG II (MP2), if any.
Note: The MPL Application Form can be downloaded from the Pag-IBIG website at www.pagibigfund.gov.ph or it can be secured from any
Pag-IBIG office nationwide.
For inquiries, Pag-IBIG Funds hotline is open 24/7 (02) 724-4244. E-mails can be sent to publicaffairs@pagibigfund.gov.ph.
Contents last updated on September 9, 2014.