This short article is intended to supplement the original article on Pag-IBIG Multi-Purpose Loan (MPL).
We will present the information in a Question-And-Answer Format so that it will be easier for you to find those topics that are relevant to your situation.
It is worth noting that a lot of the questions we received regarding the MPL Loan has already been addressed in the aforementioned article.
In many of our articles, there are instances when we don’t answer some questions. Our apologies. But that’s because the answer has already been very obvious in the article — if only the reader spent a few more minutes reading the entire article and understanding it thoroughly.
So maybe if you want to ask something that’s related to Pag-IBIG Multi-Purpose Loan, please consult that article first and make sure that you read it in its entirety.
(The New Philippine Peso Bills Design Series of 2010 is shown below. Source: The Bangko Sentral Ng Pilipinas.)
1. Who can avail of the Pag-IBIG Multi-Purpose Loan?
The Pag-IBIG Multi-Purpose Loan is open only to Pag-IBIG Fund Members who meet the following basic qualifications:
- Active or currently contributing to the Fund at the time of loan application.
- Has made at least of 24 months contributions.
2. What is the maximum loan amount I can get from MPL?
The maximum amount is 80% of the TAV.
Are you also interested in knowing the minimum amount?
That’s easy. The minimum is 60% of the TAV.
Note again that this is a recurring question which has been addressed in the previous article. In case you are wondering what on earth is TAV or you want to get a detailed answer to this question, please read the first article on Pag-IBIG Multi-Purpose Loan.
3. What is the interest rate and term of this loan type?
The MPL interest rate is only 10.75% per annum and the loan is payable in 24 months.
4. How do I get the loan proceeds?
Once the loan has been approved, you may get the loan proceeds from the office where you made the application or it will be mailed to you. The whole approved amount may be released through:
- Check – Payable to the borrower’s name.
- LandBank’s Payroll Credit System Validation
- Philippine Domestic Dollar Transfer System
5. Can I avail of the MPL even if I still have an outstanding Housing Loan?
Considering that Pag-IBIG Housing loan is usually a long term one, that’s possible.
However, take note of the following:
- The loan should not be more than 9 months in arrears.
- The account is not yet cancelled.
- The property is not yet foreclosed.
In case your housing loan is already over 9 months in arrears, you may still be allowed to avail of the Multi-Purpose Loan if the account has not yet been cancelled or foreclosed and the proceeds of the loan shall be used to cover the arrearages (missed payments).
(See also: Pag-IBIG Housing Loan Default and Foreclosure.)
6. Can I use the Multi-Purpose Loan for Home Improvement?
Yes. As a matter of fact, it is preferable to the usual Housing Loan for use in Home Improvement in the sense that there are less documents required from you. The regular Home Improvement Loan is quite complicated with lots of required technical documents like House Design, Floor Plan, Project Costing, etc.
The only other thing to consider when you want this option is that, you can’t expect to get a large amount for your loan. But for many Pag-IBIG members, that amount is already enough to cover the expenses on renovation and improvements of the house.
Actually, you can use the proceeds of the loan in various ways. It’s all up to you.
More On Pag-IBIG Multi-Purpose Loan is written by Carlos Velasco.