December 27, 2018 | Posted by: Moneymax | Government Services
December 27, 2018
This article was last updated on November 21, 2019.
When you land your first job, your employer will hand you documents that will allow you to enroll with PhilHealth, SSS, and Pag-IBIG. While PhilHealth is your basic medical insurance provider, and the SSS identifies you as a private employee (alongside your Tax Identification Number from the BIR), the Pag-IBIG Fund is your gateway to financial assistance from the government.
One of the advantages of being a Pag-IBIG member is that you can apply for a Pag-IBIG Salary Loan. “Salary Loan” in reference to the fact that the amount you can borrow is dependent on your Pag-IBIG contributions.
Interested to apply for a Pag-IBIG Salary Loan? Here’s a quick Pag-IBIG Salary Loan application guide for you:
Note that 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.
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:
When you have all of these, visit a Pag-IBIG branch near you and have your documents processed for approval.
You can also apply for loan renewal later on though it will require six months’ worth of payments towards your existing loan plus the outstanding balance together with any accumulated interest. Penalties and charges will be deducted from the new amount you take out.
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 ÷ .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.
When you receive approval for your Pag-IBIG Salary Loan application, you may choose from any of the following modes of loan release:
Borrowers can pay their salary loan over a maximum period of 24 months with a grace period of two months.
Need cash fast? For a faster loan process, do the following.
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.
FPF400 allows Pag-IBIG members to transfer their membership records and loan details, effectively consolidating all their information and making it easier for the agency to process the loan.
You can get this form online to submit to your nearest Pag-IBIG branch along with other loan requirements.
Paying your loan on time is important to avoid debt and high interest rates.
Employed members can pay for their loan through salary deduction while voluntary members or individual payers can pay over the counter and directly in a Pag-IBIG office.
Of course, you may experience things differently depending on where you apply for the loan. You may encounter complaints about delays in processing or other issues such as the property you plan on purchasing being foreclosed on. In cases like these, the agency recommends that you reach out via their help desk, either via e-mail (email@example.com) or over the phone via the (02) 724-4244 hotline.
One last important note is that some branches may be open past 5 PM (such as the one in Pasig), but remember that having all your requirements on-hand and about a day to get it all done will be worth it.