Pag Ibig Loan Guide 2024

Pag Ibig Philippines – Having a home is a milestone for everybody proud. This is a sign of financial independence. For others, it’s a status symbol. And despite the onslaught of challenges caused by COVID-19, more Filipinos were looking for opportunities to own a home last year, which resulted in the Pag IBIG Foundation issuing Pag-IBIG home loans worth Php1 billion.

  • Real estate is a serious investment that costs a lot of money. In addition, the acquisition process can be complex. But did you know that homeownership can be made easier with a Pag-IBIG home loan?
  • With an interest rate of just 3% and a repayment period of up to 30 years, this home loan is one of the Philippines‘ most affordable and flexible home finance schemes.
  • If you are considering applying for this loan, we have prepared a simple tutorial that covers the basics of the program and Pag IBIG home loan tips to improve your chances of getting approved.
Pag Ibig Philippines Loan
Pag Ibig Philippines

How Does Ibig Loan Work

According to Pag IBIG, a home loan allows you to borrow up to PHP 6 million for any of the following purposes:

  • Purchase of a residential plot;
  • Buying a house and land;
  • Buying an apartment in a condominium;
  • purchase of a residential property or apartment (including the cost of transferring ownership);
  • Construction or home improvement;
  • Home loan refinancing;
  • Combined loan objectives.

However, applying for a Pag-IBIG home loan is not as easy. None of them get approved for a loan. It will take so much of your time, energy, and even money to fulfill all the qualifications and documentary requirements.

If you consider financing your new home through Pag BIG, you must understand its basis for making loan decisions. Approval of a Pag-IBIG home loan and the loan amount will depend on the borrower’s solvency, requested loan amount, actual need, and the loan-to-value ratio. To evaluate them, Pag IBIG conducts an employment and credit investigation.

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Eligibility for Pag IBIG SALARY Loan Philippines

To qualify, you must:

  • be an active member of the Pag-IBIG Foundation at the application time;
  • have total fund savings of at least 4,800 or 24 months of membership savings contributions;
  • make at least one membership savings contribution within the last six months before the loan application date;
  • have proof of income;
  • have no defaulted Pag IBIG (housing or disaster loan) accounts on the application date.


  • Photo private sectors with photos and signatures (Related: 4 Government IDs that are very easy to apply for);
  • The latest payslips are equivalent to one month’s salary;
  • A duly completed Pag IBIG loan form 2024;

Access to the following employer information:

  • Signature of head of an office or authorized representative;
  • Company or employer name;
  • GSIS or SSS number;
  • Agency code and branch code.

Pag IBIG Salary Loan Online Application 2024

  • Download and complete the Pag-IBIG Multi-Purpose Loan Application Form;
  • Email the form to your company’s human resources department, fund coordinator, or other authorized representatives, along with photocopies of the front and back;
  • Valid ID;
  • Loyalty Card Plus;
  • Landbank card;
  • UCPB card;
  • DBP bank card;
  • Your company representative will then send an email confirming the STL application from the employer to the appropriate Pag IBIG fund department:
  • Submit your multipurpose loan documents to the nearest Pag IBIG branch by email.

Possible Loan Amount at the Pag-IBIG

The exact amount will depend on your contribution or the number of months of contribution and your contribution’s total accumulated value (TAV):

  • monthly installment Allowable loan amount;
  • from 24 to 59 months, 60% of the total contribution;
  • from 60 to 119 months, 70% of the actual contribution;
  • one hundred twenty months or more 80% TAV contribution.

To calculate Pag-IBIG’s monthly premium, use the following formula: Monthly Compensation x Employee or Employer Share

For example, if you earn 4,000 a month, your monthly contribution to Pag IBIG is 80 (4,000 x 0.02 = 80), and your employer also pays 80.

Or you can use the Pag-IBIG loan calculator that can be easily found online.

  • Suppose you need to borrow Pag-IBIG’s 2nd loan amount. In that case, qualified members can borrow up to 80% of their total Pag IBIG savings, consisting of their monthly contributions, employer contributions, and accumulated dividends.
  • To check Pag IBIG loan status, you can access many Pag IBIG Fund services even if you do not have a Pag IBIG Virtual Account. However, you need to create your account to use premium services, such as viewing your savings and loan records. This is necessary to ensure the security of your entries in Pag IBIG.

List of Pag-IBIG Loans

Read the information below and find out the main differences between Pag-IBIG loan programs.

Pag-IBIG Multi-Purpose Loan

Please read the following information if you plan to take out a home loan through Pag-IBIG or bank financing. First, Pag IBIG is a public institution that provides wages and housing loans to its members. It is currently the only public institution that services home loans for all its members, while banks can be shared or semi-public. Government, but mostly a private company that caters to various types of loans to all qualified applicants after applying and going through the credit investigation process. In terms of interest rates, banks right now offer much lower interest rates and more flexible terms compared to Pag IBIG.

  • Banks can offer an interest rate of up to 5% depending on their terms, regardless of the amount you will borrow from them.
  • Although Pag-I big can offer up to w like 4.5% if you borrow up to 450,000 pesos, the bank outperforms Pag IBIG because they can offer up to 5% regardless of the amount you will borrow on the terms of your loan. In terms of processing again, Jars are much faster compared to Pag-IBIG.
  • Suppose the banks can qualify you and issue a letter of guarantee within 1-3 weeks, of course, depending on the availability of all requirements. In that case, Pag-I big takes 3 to 4 months to process. The good thing about Pag Ibig is its flexibility in paying them upfront. For example, your loan amount is 750,000 pesos, and your monthly amortization for 30 years is 5600 pesos per month. You pay a much more significant amount, for example, 10,000 pesos.

You can repay the loan earlier. You can request a credit of the surplus on the principal, which means that if you have an excess of P4400, it will be automatically deducted from the principal. Another advantage of the Pag-IBIG conditions is that you have a considerable amount of money, for example, the amount equivalent to the principal amount. You can pay it at any time without additional interest or penalties.

Pag IBIG Short Term Loan

Short-Term Loan (STL) Pag-IBIG’s Multi-Purpose Loan or MPL is a cash loan designed to help our members with any urgent financial need. A member can get up to 80% of their regular Pag-IBIG savings, which can be processed in as little as two days!

Short term loan

Cash loans for various needs. In the multipurpose loan program, you can apply for a short-term cash loan that you can use to finance the following:

  • Minor home improvement or home renovation.
  • Livelihood, business finance.
  • Education spending
  • Finance for gadgets and expenses for technology.
  • Payment of utilities and credit cards.
  • Vacation and travel expenses.
  • Car Repair
  • Other needs.

Here are the requirements that you must be eligible for a short-term cash loan.

  • Saved at least 24 monthly membership savings;
  • cannot apply for the MPL if you are withdrawing your monthly savings due to membership expiration unless you have paid 24 months of monthly savings after the withdrawal date;
  • can apply for an MPL if you have already accumulated 24 monthly savings, regardless of months;
  • Have made at least one monthly deposit within the last six months before the loan application date;
  • In the case of an existing Pag-IBIG home loan fund, the MPL/disaster fund account does not need to be in default;
  • Have received sufficient proof of income.

Pag-IBID Payday Loan

A payroll loan is defined as a small amount of money that, when calculated, can be equivalent to the monthly salary you earn from your current job. You can borrow this amount for specific purposes, such as medical care, car repairs, improvements to your home, educational expenses, or emergencies.

Many people use this type of loan offer or program because it offers lower interest rates than any other loan program or scheme. In addition, repayment methods or the possibility of re-loaning are more accessible than other schemes.

Pag-IBIG Fund Multi-Purpose Payday Loan

Prior to taking out a loan, think about whether you qualify for this loan. The borrowed amount will be between 60% and 80% of the total accumulated profit or value. You must pay at least twenty-four monthly installments. The next thing the debtor will consider is interest per annum, in which case 10.75% per annum will be levied on the loan. In case of late payment or transfer, Pag-IBIG Fund imposes a monthly penalty of 0.5% of the outstanding amount.

If you are interested and genuinely eligible to take advantage of the loan, you can apply for a payroll loan. If you’re asking how many months a Pag-IBIG loan includes, the answer is that their loan processing doesn’t take months, it’s only about 1-2 weeks, and the repayment period is 24 months.

Payday Loan SSS

On the other hand, various government agencies offer other payroll loan programs. One of them is the SSS or social security system. To give you a little background, SSS mainly caters to the needs of private-sector employees. Otherwise, GSIS, or the Public Service Insurance System, is its counterpart, catering to the needs of government or public sector employees.

Compared to the Pag-IBIG multipurpose loan amount that Pag-IBIG offers its members, the SSS Payroll Loan only provides the equivalent of at least one or two monthly salaries as the loan amount. The maximum credit limit for the SSS salary is 15,000.00 pesos and 30,000.00 pesos.

As with the Pag-IBIG Fund Multi-Purpose Loan Application, not everyone can complete the Multi-Purpose Loan Application Form and take advantage of the program. The program is limited only to those who are eligible and meet the requirements set by law. Here you must pay 36 monthly installments for the previous six years within the last 12 months or one year. If you are on a two-month payday loan, you must qualify for 72 monthly installments.

One of the fundamental questions of every debtor is the interest that he bears, say, monthly or annually. At SSS Salary Loan, the interest rate is 10% and decreases over time. In case of delay in payment or transfer, you will be subject to a penalty of 1% per month. A 1% service charge will also be charged to the SSS member. Regarding Pag-IBIG loan processing time, it takes 2 to 3 weeks to know if your application for a payday loan is approved. As far as Pag-IBIG’s loan payment method is concerned, Pag-IBIG Fund and SSS are similar in setting 24 months.

Pag Ibig Philippines
Pag Ibig Philippines


The poverty rate in the Philippines is approximately 21.6%. In 2017, twenty-eight people died before reaching the age of five due to poverty. With such rising poverty levels in the country, there is a need for reliable, government-guaranteed, and very useful and rewarding housing finance. This is none other than the Pag-IBIG Fund, also known as the Housing Mutual Fund (or HDMF).

You can take the loan programs advantages from the following list:

  • Multi-Purpose Loan (MPL);
  • Housing loan;
  • Short-term loan;
  • Disaster loan;
  • Consolidated loan;
  • Multipurpose payday loan.

Apart from these loan schemes, you can also increase or maximize your Pag-IBIG benefits by taking advantage of the following:

  • MP1 or regular Pag-IBIG savings;
  • MP2 or modified Pag-IBIG II.

Indeed, they will be able to adhere to social responsibility, act, and work as good corporate citizens, as they were supposed. Finally, they will be able to act under their core values ​​of professionalism, integrity, excellence, and service, which align with the established ethical standards for public servants and employees. With them, the Philippines will indeed have a bright future.

User Review 5 (2 votes)
Linda Carters/ author of the article

Financial Journalist on Advance Loans Philippines with 8 years experience in a Fintech niche.

One Response

  1. Hazel Veñas November 22, 2022

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