Pag-IBIG Loans (HDMF Loans): Unraveling the Flaws, Unveiling the Benefits, and Creating True Partnership


With the rising poverty rate in the Philippines in 1978, Filipinos could hardly look for a housing finance that would help them with their financial chaos. That is when Home Development Mutual Fund (or HDMF for brevity/ Pag-IBIG Mutual Fund) came into place. It was likewise called Pag-IBIG Fund. The main aim of Pag-IBIG Fund was to create two agencies that would satisfy the basic needs of every Filipino: a necessity to create a national savings program, and an affordable housing finance for all.

With the advent of the HDMF Law of 2009, the Pag-IBIG contributions were recognized by then President, Gloria Macapagal Arroyo and therefore signed into law Republic Act No. 9679 otherwise known as the HDMF Law of 2009. The gist of this law is the conversion of this into a mandatory membership for all SSS and GSIS covered employees.

Now, being the country’s housing finance at an affordable price, there are several ways on how to maximize your benefits with Pag-IBIG. Before you can avail of the benefits being offered by Pag-IBIG, there are still few but very notable ways on how to maximize the future benefits that you will be getting.

The first one is the verification of Pag-IBIG contributions. There may be instances wherein your monthly contributions are not up to date. It is probably because of the fact that your HR Officer is a human being. If you are a regular member, your HR Officer may have missed remitting your contributions for say, a month. On the other hand, if you are a self-employed member, you may have missed a month of remittance because of busyness. That is why it is a must to check with your Pag-IBIG Fund Branch if you regularly pay and remit your monthly contribution. If you are a regular member, you may ask your HR Officer as to the status of remittance.

Here are some ways on how to inquire regarding your Pag-IBIG monthly contribution:

  • As it is mentioned above, you may try personally visiting your Pag-IBIG Fund Branch and request for contribution verification;
  • You may also send an e-mail to [email protected];
  • There is also a Pag-IBIG Chat Support where you can send messages for inquiries, and elicit answers out of the manner of questioning;
  • You may try calling the Pag-IBIG 24/7 hot line 724-4244;
  • There is also another way of contacting them through their social media account particularly the Pag-IBIG Facebook Page;
  • If you are an OFW, you may likewise consider using the OFW Member’s Contribution Verification System.

Another way of maximizing your Pag-IBIG Benefit in the future is enrolling in the Pag-IBIG Savings Program, which may be either MP1 or MP2, or both.

The first one is the MP1 wherein the common monthly savings rate for all members is 1% as Employee Savings, and 2% as Employer Share for those whose monthly salary is P1,500.00 and below. On the other hand, if your monthly salary is over P1,500.00, the percentage of monthly compensation will be 2% as Employee Savings and another 2% as Employer Share.

MP2 has been defined as an optional five-year investment scheme that resembles a time deposit. You may also earn dividends at a 5.5% annual dividend rate or 7.43% rate.

Chapter I. Overview of Pag-IBIG Fund

Pag-IBIG Fund

The PAGtutulungan sa Kinabukasan: Ikaw, Banko, Industriya at Gobyerno or also known as Pag-IBIG is a Philippine Government housing loan provider that utilizes four sectors of the society: You, the Bank, the Industry and the Government to give its member a sufficient housing needs through an affordable loan scheme.

Pag-IBIG Fund Benefits and Programs

When applying for a loan in Pag-IBIG, you can apply for either a mandatory or a voluntary membership.

  • You can be categorized in Mandatory Membership if:

  1. You’re not over sixty years old and is employed permanently, temporarily or provisionally in a private company.
  2. If you’re a household helper such as cooks, gardeners, drivers, and other similar works.
  3. If you are a Filipino seafarer.
  4. If you’re a self-employed individual with an income of at least 1,000 PHP a month and is not over sixty years old.
  5. If you are an expatriate, who is not older than sixty years and is compulsorily covered by the Social Security System.
  6. All employees who are subjected to the mandatory coverage of the Government Service Insurance System.
  7. If you are a member of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police.
  8. If you’re a Filipino Overseas Worker or employed by a foreign employer that is working either locally or abroad.
  • You can apply for a Voluntary Membership if you’re one of the following:

A non-working spouse has to be 18 years old but not older than 65 years.

  1. An employee of a foreign government or international organization.
  2. An employee of an employer who is granted a waiver or suspension of coverage by the Fund under RA 9679.
  3. A leaders or a members of religious groups.
  4. An employee that currently ceased to be self-employed and separated from employment but would like to continue paying his/her personal contribution.
  5. A public official or an employee who is not covered by the GSIS such as Barangay Officials.
  6. An individual who is eligible to apply in voluntary membership.

Housing Loan Program (Including HDMF Housing Loan Requirements)

You can apply for a housing loan program in two ways: (1) Developer-Assisted in which the developer offers assistance in the loan application and (2) Retail wherein you’re going to apply directly to the Pag-IBIG Fund.

Under the housing loan program, you may acquire a fully residential lot that does not exceed 1,000 square meters, or you may opt to purchase a residential house and lot, townhouse or condominium unit which may be pre-owned or new or a property mortgaged with the Fund. You may also use this loan for financing your home construction (Pag-IBIG Construction Loan), completion and improvement and lastly refinancing of an existing house loan given. In this case the member must not fail his / her payments for the last six months from the date of application.

Here are the eligibility requirements when applying for a housing loan:

  1. Have made at least 24 monthly savings. Paying the lump sum of 24 months is also possible.
  2. Have a gross monthly income not exceeding 17,500.00 PHP.
  3. Be not older than 65 years and not older than 70 years at maturity of the date of the loan application.
  4. Be legally capable of acquiring real property.
  5. Have adequate background and employment checks of Pag-IBIG fund.
  6. Have no unpaid short-term loan at the time of application.
  7. Have no Pag-IBIG Fund housing loan that is foreclosed or canceled.
  8. For an existing Pag-IBIG Fund housing account, either of a principal buyer or a co-borrower, the account must be updated.

As to where to pay Pag-IBIG Housing Loan, you can visit the neighbour Pag-IBIG Branch near your office or residence and directly pay the monthly amortization there. You need to have your Pag-IBIG housing loan payment verification regularly in order to avoid the penalty in case of late remittance.

Short-Term Loan

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

  1. Minor home enhancement or home renovation.
  2. Livelihood, finance for business.
  3. Education Expenses
  4. Finance for gadgets and appliance expenses.
  5. Payment for utility and credit card bills.
  6. Vacation and Travel expenses.
  7. Car Repair
  8. Other needs.

Here are the requirements you have to be qualified to acquire the short-term cash loan.

  1. Have made at least 24 monthly membership savings.
    1. You cannot apply for an MPL if you withdraw your monthly savings due to membership maturity unless you have paid 24 months of monthly savings on the following month after the date of withdrawal.
    2. You’re also capable of applying an MPL if you already reached the amount of 24 monthly savings regardless of the number of months.
  2. Have made at least one monthly savings within the last six months prior to the date of the loan application.
  3. If case of the existing Pag-IBIG Fund housing loan, MPL/Calamity fund, the accounts must not be in default.
  4. Have got submission of sufficient proof of income.


  1. The amount of loan you’ll get when applying for a short-term loan is equivalent to 80% of your Total Accumulated Value (TAV).
  2. You will be charged with an interest rate of 10.5% per annum.
  3. If you’re an employed member, amortization will be paid via salary deduction. For self-employed members, OFWs and other types of individual payers payment will be made through over-the-counter or any other payment mode approved by Pag-IBIG Fund.
  4. You may renew your MPL after paying your 6 months amortizations and upon fulfilling the eligibility requirements.

These documents may be useful to you

  1. Housing Loan Application
  2. Checklist of Requirements for Pag-IBIG Housing Loan 
  3. Letter Request (Plan of Payment)

Provident Savings

Another program being offered by Pag-IBIG Fund is the Provident Savings where you can save money for your future short-term loans and housing loan. In provident savings, you can save for as low as 100 PHP every month. You may increase the amount of your savings for a higher Total Accumulated Value (TAV).

Benefits of being a Pag-IBIG Fund member

  1. Government guaranteed savings and annual tax-free dividends.
  2. Privilege to avail Short-term Loan:
    1. Multi-purpose Loan;
    2. Emergency Loan.
  3. Privilege to avail Housing Loan.

You may withdraw your savings in the following cases:

  1. Your membership maturity is 20 years and contribution includes 240 months.
  2. Retirement.
  3. Getting unemployed because of health reasons.
  4. Permanent migration to another country.
  5. Permanent disability or insanity.
  6. In case of death, the legal heirs will receive the member’s TAV and an additional death aid.
  7. Critical health problem of the member or any of his / her immediate family as certified by a licensed physician.

About Pag-IBIG Fund

The Fund was established on June, 11 1978 by virtue of Presidential Decree No. 1530 to satisfy the need for affordable housing financing through a national savings program. There are two agencies associated with Pag-IBIG Fund: the SSS or Social Security System for private employees and the Government Service Insurance System or GSIS that manages the savings of government workers. In 1986, the agency was ceased to suspend operations due to President Corazon Aquino’s order to conduct a thorough review of the Fund and its operations and was ordered to resume after confirming that the Fund was run professionally and there were no anomalies found. In 2009, President Gloria Arroyo signed the Law Republic Act No. 9679 or the Home Development Mutual Fund Law of 2009, in which it was stated stated that membership to the Pag-IBIG Fund became mandatory for both SSS and GSIS covered employees, uniformed members of the army, firefighters, jail wardens and police officers, as well as those who were employed by foreign employer.

Pag-IBIG Contribution Table

Both you and your employer share the amount for your Pag-IBIG Fund contribution. If your monthly compensation is 1,500 PHP and less, your share will be 1% of your salary and your employer will contribute 2% but will not be deducted to your salary. For employees with over 1,500PHP monthly wages, both employer and employee will contribute 2% each of the monthly wage.

Sample computation for a worker with 7,000 PHP monthly wages.

  • 7,000 x 0.02 (Employee’s Share) = 140 PHP
  • 7,000 x 0.02 (Employer Share) = 140 PHP
  • Total Monthly Contribution: 280 PHP

Chapter II. Pag-IBIG Fund, Online Registration, Pag-IBIG Online Loan Status, and Others

Pag-IBIG Fund Requirements

Documents Required Upon Filing of Loan Application

  1. Housing Loan Application with recent ID photo of a borrower / co-borrower (if applicable) (2 copies, HQP-HLF-068/069);
  2. Proof of Income.

2.1 For Locally Employed, any of the following:

  • a. Notarized Certificate of Employment and Compensation (CEC), indicating the gross monthly income and monthly allowances or monthly monetary benefits received by the employee;
  • b. Latest Income Tax Return (ITR) for the year immediately preceding the date of the loan application, with attached BIR Form No. 2316, stamped received by the BIR;
  • c. Certified One (1) Month Payslip, within the last three (3) months prior to the date of loan application;
  • NOTE: For government employees, the Certified One (1) Month Payslip, within the last three (3) months prior to date of the loan application must be submitted together with CEC or ITR.

2.2 For Self-Employed, any of the following:

Proof/s of Income:

  • a. ITR, Audited Financial Statements, and Official Receipt of tax payment from bank supported with DTI Registration and Mayor’s Permit/Business Permit;
  • b. Commission Vouchers reflecting the issuer’s name and contact details (for the last 12 months);
  • c. Bank Statements or passbook for the last 12 months (in case income is sourced from foreign remittances, pensions, etc.);
  • d. Copy of Lease Contract and Tax Declaration (if income is sourced from rental payments);
  • e. Certified True Copy of Transport Franchise issued by an appropriate government agency (LGU for tricycles, LTFRB for other PUVs);
  • f. Certificate of Engagement issued by the business owner;
  • g. Other documents that validate source of income.

2.3 For Overseas Filipino Workers (OFWs), any of the following:

a. Employment Contract

  • Employment Contract between employee and employer; or
  • POEA Standard Contract b. Certificate of Employment and Compensation (CEC);
  • CEC written on the Employer/Company’s official letterhead; or
  • CEC signed by the employer (for household staff and similarly situated employees) with a photocopy of the employer’s ID or passport
  • Income Tax Return filled with Host Country/Government.

The Fund may also require any or a combination of the following documents:

  • Payslip indicating received income and period covered;
  • Valid OWWA Membership Certificate;
  • Overseas Employment Certificate;
  • Passport with appropriate visa (Working Visa);
  • Residence card / permit to stay indicating work as the purpose;
  • Bank remittance record;
  • Professional License issued by Host Country/Government.

NOTE: If documents are in foreign language(-s), English translation is required.

  1. One (1) valid ID (Photocopy, back-to-back) of principal borrower and spouse, co-borrower, and spouse, seller and spouse and developer’s authorized representative and attorney-in-fact, owner of title (for Accommodation Mortgage), if applicable;
  2. For OFW members, Special Power of Attorney (SPA) notarized prior to the date of departure. For OFW member abroad, a SPA notarized by a Philippine Consular Officer, or SPA notarized by a local notary (of the country where the member is working) but duly authenticated by the Philippine Consulate;
  3. Transfer Certificate of Title (TCT) (latest title, Certified True Copy). For Condominium Unit, present TCT of the land and Condominium Certificate of Title (CCT) (Certified True Copy);
  4. Updated Tax Declaration (House and Lot) and Updated Real Estate Tax Receipt (Photocopy);
  5. Vicinity Map / Sketch of the Property.
  6. Insurance Coverage:
  • Health Statement Form (Medical Questionnaire): for borrowers older than 60 years, for borrowers up to 60 years old, if the loan is over P2.0 M to P6.0 M.
  • Health Statement Form (Medical Questionnaire) and Copy of the result of medical examination conducted prior to assignment overseas as required by the employment agency: for OFW borrowers over 60 years old.

Application Processing Fee

After completing all the requirements, you may now submit your Housing Loan Application with the attached requirements at the Pag-IBIG Main Branch, provincial branches or even online. The standard fee that you need to pay upon submitting your HLA is:

  • P1,000 – Processing Fee (non-refundable);
  • P2,000 – Appraisal Fee &;
  • P2,000, upon loan approval to be deducted from loan proceeds.

Requirements Upon Loan Approval and Prior to Release of Loan Amount

  1. TCT/CCT in the name of the borrower/co-borrower/s (if applicable) with proper mortgage annotation in favor of Pag-IBIG Fund (Owner’s Duplicate copy);
  2. TCT/CCT in the name of the borrower/co-borrower/s (if applicable) (Certified True Copy) with proper mortgage annotation in favor of Pag-IBIG Fund (RD’s copy);
  3. Surety Bond (for properties that are subject to the lien imposed by Section 4 Rule 74 of the Rules of Court);
  4. Updated Tax Declaration (House and Lot) and Updated Real Estate Tax Receipt (Photocopy) in the name of the borrower/co-borrower/s, if applicable;
  5. Loan and Mortgage Agreement duly registered with Registry of Deeds with original RD stamp (HQP-HLF-162/163);
  6. Duly accomplished and notarized Promissory Note (HQP-HLF-086/087);
  7. Disclosure Statement on Loan Transaction (HQP-HLF-085);
  8. Post Dated Checks (PDCs) or Collection Servicing Agreement with Authority to Deduct Loan Amortization (if applicable).
Employee who works for an employer:

  • information about the company in which he works;
  • certificate of employment;
  • receipt of last contribution.
For a private entrepreneur:

  • latest tax return with financial report for the previous year;
  • two photos;
  • receipt of last contribution;
  • business license;
  • registration of entrepreneurial activity.
For self-employed persons:

  • a license allowing to engage in private practice;
  • bills confirming the last year’s revenue;
  • receipt of last contribution;
  • two photos.
For business owners:

  • bills confirming the last year’s revenue;
  • franchise license;
  • receipt of last contribution;
  • two photos.
For persons married to a business owner:

  • registration of entrepreneurial activity;
  • permission for private entrepreneurial activity;
  • bills confirming the last year’s revenue;
  • certificate of the unemployed, if the person is such;
  • certificate of employment and compensation of a member of the fund, notarized;
  • written consent of the spouse;
  • two photos.
For Philippine employees who work abroad

  • valid certificate of employment;
  • passport or any valid identity document;
  • receipt of last contribution;
  • two photos;
  • power of attorney for the representative who will pay the contributions.
For unemployed, married to an active member of Pag-IBIG:

  • compensation (payments) of the spouse;
  • written consent of the spouse.
For unemployed, but those individuals who want to make deposits.

  • certificate of unemployed.

Pag-IBIG Online Registration


Go to Pag-IBIG Fund e-service page or visit the main site and click the e-service tab on the homepage.


Upon arriving at the e-service site, Click “Membership Registration” Page.


Enter your Last Name, First and Middle Name, and your Birthdate. Enter the Captcha Code, then click Proceed.


Complete the Membership Application Form. The form contains many tabs of different sections of information. Be sure to fill in every section. All information about you should be credible and accurate.


Once you’re done, check all you credentials at the Summary tab and click Submit button. You’ll get redirected to a new page confirming that you have registered successfully. You will also be notified via SMS confirmation.


After successful submitting your online registration, a Registration Tracking Number (RTN) will be given to you. This RTN also serves as your temporary Pag-IBIG MID Number. Online registrations usually take two working days to be fully processed and verified.

Upon successfully submitting your online registration form, you may now send an SMS to get your permanent Pag-IBIG MID Number. Follow the text message format below and send it to +639178884363 for Globe and TM Subscribers; +639188984363 for Smart and Talk N Text Subscribers.

IDSTAT <space> RTN Number <space> Birthdate MM/DD/YYYY

Example: IDSTAT 112233445566 11/01/1991


1. Over-the-counter payment

  • Bayad Center;
  • SM Business Centers (Savemore and Hypermarket);
  • Money Remittance Center (M. Lhuillier);
  • EC Pay.


  • Fill in the payment form from the collection partner. Be sure that you know your MID, MP2 Account Number or Housing Account Number.
  • Pay the amount.
  • Get the machine-validated payment slip. It will serve as your official receipt and proof of payment.

2. Via your credit card


  • Log in to the Pag-IBIG Fund website and click the “E-Services”, select the “Online Payment Facility”.
  • Fill in the required information
  • The total amount due to be deducted from the credit card will be displayed including the convenience fee charge.
  • Select the confirmation mode: either SMS or Email.
  • Enter the Captcha Code and click “Agree” button on “Terms and Conditions”, then click “Proceed”.
  • Payment summary will be displayed and credit card information will be asked. Accomplish the required details and confirm them.
  • Once the payment transaction is completed, the payment result will be displayed reflecting the merchant and payment reference numbers; it will serve as your proof of payment.

3. Online Cashless Apps like GCASH, Paymaya,, and Moneygment Mobile App.



  • Dial *143# and choose GCash;
  • Select Pay Bills, then select “Pag IBIG” biller;
  • Enter the required details;
  • Once the payment details are accomplished, a Transaction Summary will be displayed reflecting the program type and amount;
  • Confirm the amount, type of transaction, and PRN to complete the transaction;
  • After the confirmation you will receive an electronic message.


  • Log in to the Pag-IBIG Fund website and click the “E-Services,” select the “Online Payment Facility.”
  • Under “Other Services,” fill in the following payment details.
    • Program Type (i.e. MS, MP2, Housing Loan, STL);
    • Membership Category (i.e., local or overseas);
    • Pag-IBIG ID Number;
    • Member/Borrower’s Name;
    • Period Covered To/From;
    • Period Covered Duration;
    • Amount;
    • Mobile Phone Number;
    • Email Address.
  • Enter the Captcha Code and select “Proceed” to confirm payment details.
  • Provide the necessary card details and select “Pay”.
  • Once the payment transaction is completed, the payment result will be displayed reflecting the merchant reference number and payment reference number, and this will serve as your proof of payment.

Moneygment Mobile App

  • Download and install the Moneygment App on Playstore and App Store;
  • Register or log-in;
  • Select “Pay your SSS, PhilHealth, Pag-IBIG” link;
  • Fill in your account details;
  • Select “Pag-IBIG,” and then select payment type:
    • 1. Membership Savings;
    • 2. Modified Pag-IBIG II;
    • 3. Housing Loan Amortization.
  • Input your Pag-IBIG Housing Loan details: MID for membership savings and MP2 Account Number for the Modified Pag-IBIG2 or Housing Account Number (HAN) for housing loan amortization. Remember that the Moneygment App will serve as the Pag-IBIG Housing Loan Application Form.
  • Confirm your payment.
  • Select the payment method.
  • If you use 7-Eleven, you will be redirected to the 7-Eleven payment instructions page.
  • Follow the instructions and pay at any 7-Eleven store. You will receive a printed receipt.


  • Create a account.
  • Cash in at 7-Eleven Cliqq Kiosk.
  • Tap Pay Bills & choose the type of Pag-IBIG Fund payment you need to make:
    • 1. Membership Savings;
    • 2. Modified Pag-IBIG II;
    • 3. Housing Loan Amortization.
  • Enter your Pag-IBIG details and slide to pay:
    • 1. MID for membership savings;
    • 2. MP2 Account Number for the Modified Pag-IBIG2;
    • 3. Housing Account Number (HAN) for housing loan amortization.
  • After your confirmation, a confirmation message will be displayed.

4. Employers’ Online Payment Facility


Here are the list of banks that acknowledge employer’s online payment facility:

Union Bank of the Philippines (UBP), Bank of the Philippine Islands (BPI), Land Bank of the Philippines, Security Bank, BancNet, AUB, CHINA BANK, CITIBANK, CTBC, DBP, EAST WEST, METROBANK, PNB, RCBC, STANDARD CHARTERED, PHILTRUST BANK, PBCom, Bank of Tokyo, Bank of Commerce, ROBINSONS BANK, UCPB, Veterans Bank, BDO, Citystate Savings Bank, RCBC Savings and Maybank.

  • Fill in the bank’s enrollment form and comply with the bank’s requirements.
  • Once approved, the bank shall provide you access (bank provides the user ID and passwords) to its electronic collection facility.
  • Log in to the bank’s website or to the Pag-IBIG website – click the bank’s logo and it will automatically redirect you to the bank’s website.
  • Upload collection file based on Pag-IBIG Fund’s file structure format.
  • Registered Authorizer(s) of the employer receives electronic notification for each successful upload.
  • Registered Authorizer(s) of employer approves payment for MSS/STL
  • A Transaction Reference Number will be displayed if the transaction is successfully done.
  • Print Transaction Reference Number (TRN) to serve it as proof of payment.

5. Overseas Remittance (Banks: PNB and AUB; and Non-Banks: Cash Pinas, I-Remit and Ventaja)

How to Check Pag-IBIG Contributions Online

Unfortunately, this feature is only available for OFW members of the Pag-IBIG Fund. But you can still check your Pag-IBIG Savings via the Pag-IBIG 24/7 Hotline at 724-4244 or via email at [email protected] You can also try to reach their Facebook account or go to the nearest Pag-IBIG branch to verify your contributions.

For OFWs:

  • Go to and click “OFW Member’s Contribution Verification”.
  • You will be redirected to the next page where you need to enter your Pag-IBIG MID Number and Name.
  • Enter the CAPTCHA code, then proceed.
  • You will be prompted to a page containing your other credentials.
  • Click “View Membership Savings” to proceed.
  • Finally, you will have access to the page where you can check the details of your contributions including months and the number of transactions.
  • You may also opt to print it for your reference.

Chapter III. Pag-IBIG Salary Loan vs SSS Salary Loan: What’s the Difference?

What is a Salary Loan?

Salary Loan has been defined as a small amount of money which, when calculated, may be equivalent to the monthly salary that you are earning in your present work. You can borrow this amount for certain purposes like medical assistance, car repair, improvement of your house, some education expenses or emergency purposes. Many people are using this kind of loan offer or program because it affords lower interest compared to that of any other loan programs or schemes. Furthermore, the repayment methods or the ability to reloan are easier compared to those of other schemes.

Pag-IBIG Fund Multipurpose Salary Loan

The first thing that you should think before indulging into salary loan is whether you are eligible to avail of this loan. You must have paid at least twenty four (24) monthly contributions. The loanable amount will be 60% to 80% of the total accumulated earnings or value. The next thing that the debtor will look into is the interest per annum, in which case it is 10.75% annual interest that will be imposed to the loan. In case of late payment or remittance, Pag-IBIG Fund imposes only 0.5% penalty for unpaid amount every month.

If you are interested and is indeed qualified to avail of the loan, then you may apply for a salary loan. If you are asking as to how many months the loan in Pag-IBIG includes, the answer is the following: their loan processing does not take months, it is only around 1 to 2 weeks and the repayment terms is 24 months.

SSS Salary Loan

On the other hand, there are also other salary loan programs being offered by different government agencies. One of these is the SSS or the Social Security System. To give you a little backgrounder, SSS mostly caters the needs of employees of the private sector. Otherwise, GSIS or the Government Service Insurance System is its counterpart catering the needs of the employees of the government or public sector.

As compared to what Pag-IBIG Multipurpose Loan amount offers its members, SSS salary loan only gives an equivalent of at least one or two monthly salaries as the loanable amount. The maximum salary loan limit of SSS is fifteen thousand pesos (P15,000.00) as well as thirty thousand pesos (P30,000.00).

Just like in Pag-IBIG Fund Multipurpose Loan application, not everyone may fill in the Multipurpose Loan application form and avail of the program. The program is only limited to those who are qualified to it and meet the requirements set forth by law. In here, you must have paid at least thirty six (36) monthly contributions for the previous six (6) years within the last twelve (12) months or one (1) year. It means that if you are availing of the salary loan for a period of two (2) months, your qualification must be seventy two (72) monthly contributions paid.

One very important question of every debtor is the interest that it bears say, monthly or annually. In SSS Salary Loan, the interest is 10% and is diminishing as time passes by. In case of late payment or remittance, you will be imposed 1% penalty per month. Service fee of 1% will also be imposed to the SSS member. As to the Pag-IBIG loan processing time, it takes two (2) to three (3) weeks to know if your salary loan application is approved or not. Regarding the Pag-IBIG loan payment method, Pag-IBIG Fund and SSS are similar in that that they impose a period of twenty four (24) months.

Chapter IV. Learn more about Modified Pag-IBIG II (MP2)

If you are interested in the Modified Pag-IBIG II (or MP2 for brevity), you may outright register online through these procedures:

  • Go to the Modified Pag-IBIG II Enrollment System;
  • Fill in the necessary blanks with correct information and submit it through online;
  • Print the e-form of the MPSEF bearing your MP2 account number;
  • Present this form to the nearest Pag-IBIG Branch and pay your contributions. In case you are employed, you may also present the MP2EF to the HR Officer so that he or she will be able to include you in the remittances for the said month.

As it is very helpful especially for those who are contributing higher amount per month, many customers become so eager to learn more about this MP2. If you are an active Pag-IBIG Fund Member, former Pag-IBIG Fund Member (say you are already a pensioner), you can save under MP2 program. It is allowed if you have at least 24 monthly savings before your retirement date.

The minimum amount that you can save per month is five hundred pesos (P500.00). It is rather practical because if the method of salary payment is per fifteen days, you can divide the amount of P500.00 into two, and it is not hard to pay P250.00 per cut-off. Of course if there is a minimum, the next question that will be asked by members is the maximum amount that they can save. The answer is NONE. There is no limit. You can save as much as one hundred thousand pesos (P100,000.00) under MP2. If you want to save an amount exceeding five hundred thousand pesos (P500,000.00), there is an additional requirement: you should issue a check (either personal or manager’s one) for that matter.

Another question that may be asked by people interested to avail of the program is the dividend that will be earned. To date, MP2 dividend rate for the period of 2016 to 2018 is pegged at 7.65%.

Of course, you will ask as to the date of availment of the MP2 Dividends. It is all upon your own choice. Take a look at these suggested choices:

  • After a period of five (5) years, it will already be mature. So you may withdraw your MP2 savings with the MP2 dividends included in it. You may choose to have it annually or compounded.
  • In case you choose to receive the dividends through annual pay-out, you will receive it by being credited in your savings or checking account enrolled in the banks accredited by the Pag-IBIG Fund. It may be Landbank of the Philippines, Development Bank of the Philippines, and so on.

Since it has a very good impact to people who are in need of money, they may still want to re-apply for a new MP2 after the 5-year maturity date. Are they still allowed? YES. Anytime after the maturity of the MP2 savings, you can already withdraw it. If unclaimed, the savings will still continue to earn dividends for a period of two more years however the dividend rate will be no longer than one imposed by MP2 but by the Pag-IBIG Fund Regular Savings Program otherwise known as the MP1. After that period, it will stop earning dividends and must therefore be withdrawn.

Some Pag-IBIG Fund Members ask whether they may still have another MP2 account if they have already got one. YES. Multiple MP2 accounts are allowed by law and by Pag-IBIg Fund.

Chapter V. Conclusion

The poverty rate of the Philippines is approximately 21.6% according to the researches in the 2015. In 2017, twenty eight (28) people died before reaching the age of five year-old due to poverty. With this rising rate of poverty level in the country, there is a need for a trusted, government-guaranteed, and a very helpful and useful housing finance. That is none other than the Pag-IBIG Fund otherwise known as the Home Development Mutual Fund (or HDMF for brevity).

You may avail of some loan programs from the following:

  • Multi-purpose Loan (MPL);
  • Housing Loan;
  • Short-term Loan;
  • Calamity Loan;
  • Consolidated Loan;
  • Multi-purpose Salary Loan.

Apart from these loan schemes, you may also choose to augment or maximize your Pag-IBIG benefit by availing of the following:

  • MP1 or the Regular Pag-IBIG Fund Savings;
  • MP2 or the Modified Pag-IBIG II.

With these, for sure Philippines will have a brighter future ahead. Truly, they will be able to adhere to be socially responsible, to act and to operate as good corporate citizens, as what they envisioned to be. Finally, they will be able to act on their core values of professionalism, integrity, excellence, and service which are all in accordance with the prescribed ethical standards for public officials and employees.

Click to downloand 

  1. Pag IBIG multi purpose loan application form
  2. MPL program
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Written by | Modified date: March 03, 2020

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