Pag-IBIG Salary Loan
Application Requirements & Procedure
In times of emergency, take advantage of your Pag-IBIG Fund by getting a Salary Loan. Pag-IBIG Salary Loan is your gateway to financial assistance from the government. A salary loan is a small amount of money equivalent to your current salary that you can borrow for a wide range of purposes, such as utilities, medical needs, car repair, home improvement, education, and other immediate financial needs. Classified as a type of personal loan, salary loans offer low-interest rates and convenient repayment methods.
Who can apply for a Salary Loan?
- One must be an active Pag-IBIG Fund member within a minimum of 24 monthly contributions.
- One whose contribution has been paid within the last six months.
- Submission of sufficient proof of income
NOTE: Pag-IBIG members with an existing Pag-IBIG Housing Loan or Pag-IBIG Calamity Loan must not have a default account in the date of application.
What are the Requirements for a Salary Loan?
- Photocopies of 2 valid photos and two signature-bearing IDs
- Latest pay slips equivalent to a month’s wage
- Dully accomplished Pag-IBIG Multi-Purpose Loan Application form
You also need to be an active Pag-IBIG member at the time of loan application, with at least five monthly contributions for the last six months. The application form will require your employer’s information, so be sure to secure the following data as well:
- Signature of Office Head or Authorized Representative
- Employer or Company Name
- SSS or GSIS No.
- Agency Code and Branch Code
When you have all of these, visit a Pag-IBIG branch near you and have your documents processed for approval.
How much can you loan?
You can loan 60% – 80% of your total accumulated value. The amount that you can loan from Pag-IBIG depends on several factors, like your preferred loan amount and capacity to pay.
How to Compute Pag-IBIG Salary Loan Amount?
The calculation of Pag-IBIG will vary upon the individual’s membership and paying terms. Calculations are made according to the individual’s membership term multiplied by his/her monthly contribution. From there, a 60% loan factor is applied.
For example, an individual who has been a Pag-IBIG member for 24 months can only loan PHP 2,880. (24 months x 200 monthly contribution ÷ 0.60)
The amount you can loan rises as your monthly contributions increase, and so does the loan factor. An employee who has made contributions for 120 months or more can take out a loan at an 80% factor.
Loan Release & Loan Terms
Once your application is approved, you may choose from any of the following modes of loan release:
- Crediting to your disbursement card (2)
- Check issuance
- Bank transfer through Landbank of the Philippines’ PACSVAL
Borrowers can pay their salary loan over a maximum period of 24 months with a grace period of two months. Interest rate per annum or annually is 10.75%.
Consolidate the places you’ve worked at through Pag-IBIG. This means taking the time to request the workplace consolidation form and making sure that the agency has a complete record of your work history. If you’ve worked in one general area throughout your career, your loan’s processing time could be cut to as short as three days.