Lady holding Pag-IBIG loan application form

Everything You Need to Know When Getting a PAG-IBIG Loan

Financial mishaps that would warrant loans are things that can be unavoidable considering the Philippine economic situation. Instead of going to your relatives and friends to ask for money, there are different options that you can consider. In fact, you don’t have to go to your nearest loan shark to get the funds you need!

One of the best options is the PAG-IBIG Fund. We’ve had a great number of inquiries, asking us how to get a PAG IBIG loan? Here, we will be discussing the different types of PAG IBIG loan options, plus the PAG IBIG loan requirements (new loans, renewal and more).

What is PAG-IBIG Fund?

Before anything else, what is PAG-IBIG fund? PAG – IBIG Fund has made headlines lately, with the Home Development Mutual Fund fraud case that reached P6.6 billion. Despite the controversy with Globe Asiatique and PAG-IBIG Fund, PAG-IBIG Fund remains to be one of the most popular sources of loans in the Philippines, whether for short term or for housing loans.

When you receive your paycheck, month after month, do you ever get pissed because of the deductions that you get? Do you ever wonder what you can do with the collected funds for Pag-IBIG Fund? Before anything else, let’s discuss what PAG-IBIG Fund is. PAG-IBIG Fund stands for, Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gubyerno.

PAG-IBIG Fund is a mutual fund developed for the primary purpose of providing affordable housing program for the majority of Pinoys. Aside from housing, another goal of PAG-IBIG Fund is to generate savings. Considering the inflation rate, this option is a practical means of purchasing a property or getting the money you need during emergencies.

Mandatory for all employees

In 2009, under RA 9679, Pag-IBIG membership is mandatory to all employees that are covered by the Social Security System (SSS) and Government Service Insurance System (GSIS). The good thing being a member of the PAG – IBIG Fund is that you can withdraw your savings after 2 decades of membership, after completing a total of 240 monthly contributions.

PAG-IBIG Fund has been known to provide housing loans to their members. This enables them to have enough money to pay for their dream house. Borrowers then pay PAG-IBIG for their housing loan with a reasonable amount for an extended time.

What made PAG-IBIG Fund practical today is the fact that you can borrow short term loans from them. The purpose of a PAG IBIG Loan is to provide financial assistance to members who need livelihood, medical and even educational assistance. Borrowing money from PAG-IBIG Fund is a convenient considering the minimal deductions that you will have to bear.

What are the PAG IBIG Loan Requirements?

For someone getting a new loan, there are only four PAG IBIG loan requirements that you need to meet.

  1. You need to contribute at least 24 months to PAG-IBIG.
  2. You need to showcase that you were an active member at the time of loan application. You have to complete at least 5 monthly contributions in the last 6 months.
  3. The applicant should have a net pay of not less than the minimum requirement of the General Appropriation Act or company policy.
  4. If you have an existing calamity loan, you can only avail of MPL (Multi Purpose Loan) if you complete at least 6 monthly amortizations. Outstanding balance, interest and penalties shall be deducted from the MPL.

If you are looking for a loan renewal, there is a different set of requirement.

  1. With payment of at least 6 monthly amortizations. Similar to how existing calamity loans work, the outstanding balance, with interest and penalties shall be deducted from the new loan.
  2. An active member at the time of the loan, who completed at least 5 of the last 6 months of contributions.
  3. The member’s net take home pay should not fall below the minimum requirement of General Appropriation or company policy.

Calamity Loan

In an event that there is an earthquake, flood or any other calamity, it is also possible that you can avail of the calamity loan. Similar to the requirements on how to avail of a short term loan, it is also applicable to this setup. However, you need to be residing in an area by which the Office of the President or local government declared under the state of calamity. It is also important that if you have an existing housing loan, multi purpose loan, or even a calamity loan, it is important that it shouldn’t be in default as of the date of loan application.

The amount of loan that you can borrow depends on the borrower’s  total accumulated value, subject to the terms and condition of the program. You get as much as 80% of your total accumulated value. This loan has been made in order to provide leeway for those who were affected by calamities. You can pay the calamity loan up to 2 years plus 3 month grace period.

For someone who is looking for assistance when it comes to loans, you can contact the PAG IBIG Office at 02-724-4244 or email


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