Pag-Ibig Business Loan Requirements

Pag-IBIG Fund Overview

Pag-IBIG stands for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya, and Gobyerno. It is originally known as the Home Development Mutual Fund (HDMF) and was established in June 1978 by the virtue of Presidential Decree No. 1530 to empower the abovementioned four sectors by providing them with affordable shelter financing through a sustainable savings plan. 

Pag-IBIG Multipurpose Loan 

Multipurpose means having multiple uses or functions, which is precisely what the Pag-IBIG Multipurpose Loan (MPL) is for – it’s a cash loan intended to help its members in times of financial difficulty and is helpful for the following purposes and more:

• Medical expenses
• Minor home renovations
• School-related expenses
• Furniture, appliances, or electronic gadgets purchases 
• Utility, credit card, and other bill payments 
• Travel expenses 
• Special/Personal occasions 
• Car repairs 
• Capital for a small business 

If you’re a PAG-IBIG member, you can take advantage of the Pag-IBIG MPL and use it to start a small business for cover the initial capital. Aside from that, you may use the proceeds for other personal needs since it’s a multipurpose loan.

Pag-IBIG Loan Requirements

If you apply for a loan through a representative, you must have an authorization letter and submit it with a photocopy of both (you and your representative) your valid IDs in addition to the following:

Documentary Requirements 

• Multi-Purpose Loan Application Form (MPLAF, HQP-SLF-065) (1 Original)
• Valid ID acceptable to the Fund (1 photocopy)
• Proof of Income:

For Formally Employed:

The “Certificate of Net Pay” at the back part of the application form is accomplished by the employer or submit a photocopy of the 1-month latest payslip duly authenticated by the company’s authorized signatory. 

For Self-Employed (any of the following:)

• ITR, Audited Financial Statements, and Official Receipt of tax payment from bank supported with DTI Registrant and Mayor’s Permit / Business Permit (1 Photocopy)
• Commission Vouchers reflecting the issuer’s name and contact details for the last 12 months (1 Original)
• Bank Statements or passbook for the last 12 months in case income is sourced from foreign remittance, pension, etc. (1 Original)
• Certified True Copy of Transport Franchise issued by an appropriate government agency (LGU for tricycles, LTFRB for other PUVs) (1 Original)
• Certificate of Engagement issued by the owner of the business (1 Original)
• Notarized Affidavit of Income (HQP-SLF-136) (1 Original
  

For Overseas Filipino Workers (OFW) (any of the following):

Employment Contract

• Employment Contract between employee and employer (1 Photocopy); or 
• POEA Standard Contract (1 Original)

Certificate of Employment and Compensation (CEC)

• CEC written on the Employer/Company’s official letterhead (1 Original); or 
• CEC signed by the employer for household staff and similarly situated employees (1 Original), supported by a photocopy of the employer’s ID and passpor

Income Tax Return filed with Host Country/Government (1 Original)

• Photocopy of the Payroll Account / Disbursement Card (For loan proceeds being released through Payroll Account / Disbursement Card)
• Photocopy of employer-certified Payroll Account / Disbursement Card (For applications thru employer)
• For individual applications, the Payroll Account / Disbursement Card must be presented for authentication

Qualifications

Aside from these documents, the applicant must ensure that they also meet the following criteria: 

• A minimum of twenty-four (24) monthly membership savings under the Regular Savings program;
• An active member with a minimum of one (1) monthly membership savings during the last six (6) months before the loan application; and
• Accounts on other existing Pag-IBIG loans (Housing Loan, MPL, or Calamity Loan) must be in good standing

Loan Features, Fees & Charges

Pag-IBIG Multipurpose Loan features are among the finest on the market. Aside from the low-interest rate (as low as 10.5% per annum), qualified members are entitled to up to 80% of their cumulative Regular Savings, including their monthly and employer contributions and dividends received. Simply put, their Pag-IBIG Regular Savings determine their borrowing limit.

On the other hand, the amount that qualified members with outstanding debt on their Pag-IBIG Calamity Loan may borrow depends on the difference between the 80% of their Pag-IBIG Regular Savings and the remaining balance on their Pag-IBIG Calamity Loan.

Loan Application Procedure

Applying for a Pag-IBIG Multipurpose Loan is either online, or a branch visit conveniently fits into their schedule.

Online Application

• The qualified member must upload the accomplished application form together with the required supporting documents; or
• Fill out all the necessary fields on the online application form (For members with employers enrolled under the Virtual Pag-IBIG Employers) 

Over-the-Counter Application 

The qualified borrower or the employer may visit the nearest Pag-IBIG Fund branch to submit the duly accomplished application form and the requirements. 

Either way, it only takes three (3) simple steps to apply for a Pag-IBIG MPL: 1) submit the application form and requirements; 2) receive the STL Acknowledgment Receipt (HQP-SLF-121); 3) get the loan proceeds on the scheduled date. 

Conclusion

There are pros and cons when applying for business loans, and admittedly, one of the cons of Pag-IBIG MPL is completing the seemingly endless list of requirements. 

However, if going through all these hassles could mean having the required funds to start or continue one’s business away from a loved one’s repayment expectations or savings going down to zero, Pag-IBIG Multipurpose Loan is truly well worth a shot. After all, it is one of the market’s most competitive loans that would greatly benefit one’s business.