Being employed gives you the opportunity to enjoy some benefits like SSS, PhilHealth and PAG-IBIG. The benefits and services offered by PAG-IBIG Fund are really great help for employed individuals both in government and private.
This government agency is offering Multi-Purpose Salary Loan for qualified borrowers. Such loan helps borrowers to suffice their needs including:
- Home improvements or renovations
- Small business capital
- Medical and educational expenses
- Credit card and bills payments
- Debt consolidation
- Car repair and travel
However, before you can qualify for this type of loan, you must comply first the required amount of contribution. For employed individual the monthly contribution is P200 a month shared equally by both the employer and employee. The borrower must complete the 24 months’ contribution before he or she can avail the salary loan.
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The amount of loan depends on the number of months the member contributed multiplied by the amount of contribution. If the member had contributed 30 months, 60% of the total accumulated contributions is applied.
How to apply PAG-IBIG Multi-Purpose Loan?
If you’re planning to apply for multi-purpose salary loan you should prepare the following requirements:
- Photocopies of signature-bearing IDs and two valid photos
- Latest pay slip indicating the monthly wage
- Accomplished PAG-IBIG Multi-purpose Loan Form
Likewise, make sure you know some information about your employer as you’ll need it in filling out the application form.
- PAG-IBIG employer ID number
- GSIS or SSS number
- Signature of employer’s Authorized Signatory or head of Office
After accomplishing the form, you can visit any PAG-IBIG branch in your area and submit the documents for approval.
For self-employed applicants should present a photocopy of either Commission Voucher, Business Mayor’s permit or any valid proof of income.
Processing of loan takes about two weeks.
Loan repayment method
For employed applicant the monthly payment will be deducted directly from your salary. However, for self-employed, you can choose any of the following payment options:
- Pay directly to PAG-IBIG office
- Pay through accredited banks
The loan is payable within 24 months and the loan interest per year is 10.75%.
Renewal of loan is granted if the borrower has paid at least six months of the present loan and the balance will be withheld from your new loan.