What is Home Development Mutual Fund (PagIbig)

In case you’re wondering, here’s what Pag-IBIG stands for: Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.

The “IBIG” part is where the meat of the definition is: You (I), the Bank, the Industry, and the Government all play a part in this savings scheme.

To be clear, it’s one and the same with the Home Development Mutual Fund or HDMF, which is a corporation owned and controlled by the government.

Per their website, the HDMF was established to be “an answer to the need for a national savings program and an affordable shelter financing for the Filipino worker.”

Pag-IBIG Fund Benefits & Programs

So what’s in it for me as a member of PAG-IBIG? Benefit-wise, the program is divided into three categories:

Short Term Loan

Pag-IBIG also provides its members the ability to make short-term cash loans. It’s classified into 2 types: Calamity Loan and Multi-purpose Loan.

Calamity Loan – As its name suggests, this type of loan is for people who need financial aid after some unforeseen type of calamity or disaster (flood, fire, etc).
Multi-purpose Loan – This type of loan is for people who want to borrow money for a variety of reasons, whether it’s for a personal purchase or raising a small capital to fund their business idea.

Housing Loan

This is what PAG-IBIG is best known for. The idea is to provide affordable financing to Filipinos through its loan program by partnering with local Real Estate Developers.

Loan interest rates of the Pag-IBIG Fund Housing Loan starts at 5.375% for 1-year and 6.375% for 3-years minimum. A loan is payable up to a maximum of 30 years.

***Click here for the Pag-IBIG Fund Housing Loan Affordability Calculator

Provident Savings

Aside from housing and short-term loans, PAG-Ibig also acts as a Savings Program, or better known as Provident Savings.

The employee’s monthly savings (including employer share, as applicable) and total annual dividend earnings make up the member’s TAV or Total Accumulated Savings.

Members can claim their Provident Savings after membership maturity of 20 years with 240 monthly contributions, retirement, or in the event of disability, termination from work due to health reasons, death, or departure from the country.

Features include:

Tax-free annual dividend earnings
All Savings are guaranteed by the government
Portability of Savings – Members may easily continue their savings/contribution even when transferring from government work to private sector (and vice versa)

Pag-IBIG Contribution Table [2018]

If you’ve ever wondered how your contributions to Pag-IBIG are calculated, this table will answer it for you.

How many years to become eligible for Pag-IBIG loans?

A member must have to make contributions for at least 24 months (or 2 years) to be able to be approved for a Pag-IBIG loan application.

How to compute contributions?

How much is the minimum contribution?

The minimum monthly amount a member can contribute is Php 200 while the maximum is set to Php 2,950.00

How to compute contributions?

Any employee earning Php 5,000 or higher per month will have a 2% deduction for both employee and employer share.

The combined amount represents your total monthly contribution to PAG-Ibig. Note though that both employee and employer share top at Php 100 each.

How to increase Pag-IBIG contributions?

Please reach out to People Operations Team to advise that you would like to pay more than the minimum Php 100 monthly contribution.

You may be required to sign a form as proof of your request and confirmation of increased contribution.

How to apply for Multi-Purpose Loan (MPL)

Eligibility Requirement

Have a total Pag-IBIG Fund savings of PHP 4,800 or at least twenty-four (24) monthly Membership Savings (MS)
Have made at least one (1) MS within the last six (6) months, as of month prior to the date of the loan application.
Submission of sufficient proof of income
Has made at least one (1) MS within the last six months (6) months prior to the date of loan application.
If with existing Pag-IBIG Fund Housing Loan, MPL and/or Calamity Loan, the account/s must be default.
Submission of sufficient proof of income.

How to Compute Pag-IBIG Salary Loan Amount

Calculations are made according to the individual’s membership term multiplied by his/her monthly contribution. From there, a 80% loan factor is applied. For example, an individual who has been a Pag-IBIG member for 24 months can only loan PHP 3,840. (24 months x 200 monthly contribution ÷ .80)

The amount you can loan rises as your monthly contributions increase, and so does the loan factor.

Requirements Multi-Purpose Loan (MPL)

Photocopies of two (2) valid photos and two (2) signature-bearing IDs
Latest payslips equivalent to a month’s wage
An accomplished Pag-IBIG Multi-Purpose Loan Application Form (scroll down for the forms)

Interest Rate

The loan will be charged with an interest of 10.5% per annum.

Modes of Release and Loan Payments

The loan amount will be credited to your disbursement card.

Loan Renewal

A borrower may renew his MPL after payment of the equivalent of six (6) monthly amortizations and upon satisfying the eligibility requirements.
The proceeds of the new loan shall be applied to the borrower’s outstanding MPL obligation and the net proceeds shall then be released to him.

Pag-IBIG Online Registration

STEP 1: Vist Pag-IBIG Fund’s Website

Go to www.pagibigfund.gov.ph. Scroll down and look for the “E-Services” tab. Click on it.

STEP 2: Go to the Membership Registration Page

Select “Membership Registration” on the next page.

STEP 3: Enter your Personal Details

Key in your name and date of birth so the system can determine if you already have an existing account. A code will be provided and you will need to enter this to proceed to the next page.

STEP 5: Submit your Details

After completing all required fields, click “Summary” and submit your online registration form. Upon submission, you will be redirected to a new page confirming success of your registration – and at the same time receive an SMS confirmation.

From this page, you’ll get an RTN (or your Registration Tracking Number), which can help you track the progress of your registration (it also serves as temporary Pag-IBIG ID number that you can use).

It usually takes 2 working days to have your registration processed and verified, in which you can then have your permanent Pag-IBIG MID number.

STEP 6: How to Get your Pag-IBIG MID Number:

Send a text message using the following format:

IDSTAT<space>[Your RTN Number]<space>[Birthdate MM/DD/YYYY]

Example: IDSTAT 123456789101 08/19/1985

And send it to:

0917 888 4363 [Globe & TM]
0918 898 4363 [Smart & Talk N Text]

Sign up for the Pag-IBIG Savings Program (MP2)!

The MP2 program is solely a savings scheme, designed to provide Pag-IBIG I members with another savings option that would grant them with a yield higher than those given under the Pag-IBIG I membership program. The program took effect on 3 February 2010.

This option allows you to allocate a minimum amount of Php 500 per month in an investment that is rated to earn at a higher interest rate compared to savings and time deposit accounts on some banks.

Payment for the MP2 should be made by the employee NOT by the employer.

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