When you get your first job, most employers hand you documents that allow you to enroll membership into PhilHealth, SSS, and Pag-IBIG. While PhilHealth is your basic medical insurance provider and the SSS is basically your identity as an employee (alongside your Tax Identification Number from the BIR), the Pag-IBIG Fund is a taxpayer’s gateway to financial assistance through the government.
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Most people call it a “salary loan” in reference to the fact that the amount you can borrow is dependent on the contributions you have already made while you were employed. Its actual name is the Pag-IBIG Multi-Purpose Loan.
Here’s a quick guide if you need to apply for a Pag-IBIG Salary Loan:
Pag-IBIG Salary Loan Eligibility
The first thing that you actually, really need to have accomplished is to have made 24 months’ worth of contributions to Pag-IBIG in order to qualify, as the minimum amount you can borrow is calculated dependent on the number of contributions a member has made.
Calculations for it are made according to the number of months (24) multiplied by the member/employer contribution (PHP 200), and then the loan factor of 60% is applied. Meaning that you can only loan PHP 2,880 out of the PHP 4,800 you contributed in the thirty months that you were a member of Pag-IBIG.
The amount you can take out on 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.
Pag-IBIG Salary Loan Requirements
You’ll need to get the following requirements before you actually go to a Pag-IBIG branch to apply:
- Photocopies of two valid photos, and signature-bearing IDs.
- Latest payslips equivalent to a month’s wages.
- An accomplished Pag-IBIG Multi-Purpose Loan Application Form
You will also need to have been an active member at the time of loan application, with at least five (5) monthly contributions for the last six (6) months. The application form will require your employer’s information, so be sure to secure the following info as well:
- Signature of Office Head/ or Authorized Representative
- SSS/GSIS No.
- Agency Code and Branch Code
Once you’ve gotten all these together, you can visit the Pag-IBIG branch nearest you, and have your documents processed for approval.
You can also apply for loan renewal later on, though it will require that you have made at least six months’ worth of payments towards your existing loan, and the outstanding balance, together with any accumulated interest, penalties and charges will be deducted from the new amount you take out.