PAG-IBIG Can Fund Your Next Vacation. Here’s How.

Most Filipinos are aware that the PAG-IBIG fund can help them buy their first house. Officially called the Home Development Fund (HDF), it’s a mandatory savings program, to which gainfully-employed Filipinos and their employers make contributions for about twenty (20) years.


Initially, the PAG-IBIG fund covered only low-cost housing. Over the years, however, it’s come to include townhouses, condominiums, and other similar residences within the metro. Furthermore, migrants can even contribute to the fund from abroad, either through money remittance services, banks, or one’s relatives


But did you know that you can also avail of a PAG-IBIG loan for your next big vacation?


PAG-IBIG’s Multi-Purpose Loan (MPL)

PAG-IBIG’s Multi-Purpose Loan (MPL)

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The Multi-Purpose Loan, as its name implies, allows you to borrow money for various reasons. Medical assistance, educational expenses, and livelihood funding, among other things, all count as such. More interestingly, you can also use it to pay for a vacation abroad. 


If you’re eligible, you can borrow up to 80% of your total accumulated value (TAV). On the other hand, borrowers who previously availed of the Calamity Loan can only claim the difference between the latter and 80% of their TAV.


Generally, PAG-IBIG charges an annual interest rate of 10.5% on MPL’s


How to Avail

How to Avail

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First, you need to satisfy the following requirements:

  • At least twenty-four (24) months’ worth of monthly contributions and membership savings (MS) or the equivalent thereof;

  • At least one (1) MS within the last six (6) months prior to the loan application;

  • Sufficient proof of income;

  • No defaults on any existing PAG-IBIG loans. 


In addition to this, you can’t have withdrawn your MS upon maturity or any other time beforehand. If you have, another twenty-four (24) months’ worth should have been paid afterwards to maintain eligibility.


Next, you need to fill out an application form for the MPL. When you’ve accomplished that, submit it to the nearest PAG-IBIG office and await their feedback.


Loan Payments

Loan Payments

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If you’re formally employed, you’ll need to pay the amortization for your MPL through the usual salary deductions.


Otherwise, you should make monthly payments over the counter or through other approved modes of payment. The same goes for self-employed individuals and migrants too.


Lastly, you can renew your MPL after you’ve settled six (6) monthly amortizations (or the equivalent thereof) and upon satisfying the same eligibility requirements.


Do bear in mind that the fund will apply the new loan’s proceeds to your outstanding MPL balance. Following that, they will simply release the net proceeds to you. 

Serena Estrella

Serena joined Remit back in 2016, and has tormented its Marketing Head constantly ever since. To get through the rigors of writing about grave concerns like exchange rates, citizenship requirements, and PH-AU news, she likes to blast Mozart, Vivaldi, ONE OK ROCK, and Shigeru Umebayashi in the background. She does a mean Merida voice in her spare time too.


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