Multi-purpose loan

The term "loan" itself seems scary and daunting. However, in an emergency, you might look for financial help in the form of a loan. Well! It may sound like a nightmare if you do not know the right resources for getting a loan. So, go for the right way to get a loan.

There are many kinds of loans that you can opt for according to your requirements. You may also borrow money online in the form of a personal loan. An online loan is the fastest and most convenient way to have financial support. Multi-purpose loans are one of them. Read this informative guide if you are interested in multi-purpose loans.

Multi-Purpose Loan

Multi-Purpose Loans or MPLs in the Philippines are available for the holders of Pag-IBIG members. The Pag-IBIG Fund Multi-Purpose Loan is a type of cash loan in the Philippines. It helps its members with any immediate financial needs.

Short-Term Multi-Purpose Loans

The Home Development Mutual Fund was established on June 11, 1978, to secure the future of Filipino workers. It is also known as Pag-IBIG Fund.

The primary purpose of this fund was to fulfill the need for a National Savings Program and provide affordable shelter to the citizens.

But you can also apply for short-term Multi-Purpose Loans from Pag-IBIG, the government serving as its trustee and guarantor.

Aims of the multi-purpose loans

Its objective is to provide financial assistance to the members for:

Repairs on the house,
Educational expenses,
Medical expenses,
Livelihood purposes,
Payment of utility/credit card bills,
For the purchase of home appliances or electronic gadgets
Vacation/Travel etc.

For whom is Pag-IBIG membership mandatory?

Under the new law, Pag-IBIG membership is mandatory for :

All SSS and GSIS-covered employees,
Uniformed members of the AFP, BFP, BJMP, and PNP.
It is also compulsory for Filipinos who work for foreign-based employers.

How much of a loan amount can you borrow?

The members who fulfill the requirements can borrow up to 80% of their total accumulated savings. It takes two days for the processing of the loan after you apply.

These savings comprise:

The monthly contributions,
Employer’s contributions,
And the dividends earned.

It means the more you save in your Pag-IBIG account, the higher the loan amount you may apply.

Who is eligible for membership?

The minimum eligibility age is 18 years. The maximum age limit is 65.

But the applicant must comply with the set rules and regulations for Pag-IBIG members.

These rules include the amount of contribution and schedule of payment.

The applicant should be an active member while applying for a loan.

An "active member” is considered who has paid at least six consecutive monthly contributions before applying for the loan.

The member should not be a previous loan defaulter.

He should have contributed an absolute total of 24 monthly contributions.

These contributions also include non-successive payments.

How to secure cash through the Pag-IBIG Multi-Purpose Loan

Go through the following steps:

Download the Multi-Purpose Loan application form from the official Pag-IBIG website.
Check for the documentation required.
Take the print and fill it up.
Sign in and get it signed by two witnesses as well.
Scan the document or take a photo and send it to the authorized representative. The employer will verify the application agreement portion after you complete the requirements.
After you get it verified, send the application along with a copy of:

Valid ID proof and a copy of the Cashcard to the email address enrolled with Pag-IBIG.

Advantages

There is no processing fee.
It takes around seven to twenty days for the processing.
The applicant will receive a text message from Pag-IBIG if the loan is approved.
You will get the Loyalty Card Plus or Cashcard with the loan amount.
It is not a strict requirement to submit the pay slips.