Do you want to learn how to loan in pag ibig in the Philippines? This blog post is for you! In this post, I will teach you the basics of loans in pag ibig and how to get started. Keep reading to learn more!
What is Pag-IBIG, and what are its functions?
Pag-IBIG is the Philippines’ Home Development Mutual Fund, established in 1978. It is a government-mandated savings program that helps Filipinos save for their own homes. Aside from housing loans, Pag-IBIG offers other kinds of loans, such as calamity and multi-purpose loans.
Related: A Step-by-Step Guide to Pag Ibig Online Registration
What Are the Types Of Pag ibig Loan?
There are four (4) types of Pag-IBIG loans:
Housing Loan
It can finance the construction or purchase of a house, townhouse, or condominium unit. Members can borrow up to Php 6 million, with repayment terms of up to 30 years.
Multi-Purpose Loan
This loan can be used for almost anything, such as home improvement, tuition fees, and even business capital. The maximum loanable amount is Php 1 million, with repayment terms of up to 24 months.
Calamity Loan
As the name suggests, this loan is for members affected by calamities, such as typhoons and earthquakes. The maximum loanable amount is Php 100,000, with repayment terms of up to 24 months.
OFW Loan
It is a particular loan for members who are working abroad. The maximum loanable amount is Php 2 million, with repayment terms of up to 36 months.
What Are The Requirements To Apply for Pag-ibig Loan?
To apply for Pag-ibig loan, you must first become a Pag-ibig Fund member. You can do this by registering at any Pag-ibig office or authorized institution. You will then be given a Pag-ibig membership identification number (MID) which you will use when transacting with the Pag-Ibig Fund.
Aside from your Pag-ibig MID, you will also need to submit the following documents:
1. A duly accomplished Loan Application Form
2. Proof of income
3. Proof of identity
4. Latest residency certificate issued by barangay officials
5. Certificate of employment and compensation (CEC) from your current employer indicating your length of stay in the company, position, and compensation
6. Your most recent payslip
7. If self-employed, a copy of your registration with the Department of Trade and Industry (DTI) or Securities and Exchange Commission (SEC), as well as your latest Income Tax Return (ITR)
8. The original copy of your Pag-ibig Savings Passbook or Statement of Account
9. Post-dated checks for your monthly amortization payments
How to Get Started with Loans in Pag-Ibig in the Philippines
Now that you know the basics of how to get started with Pag-Ibig loans in the Philippines, it’s time to take action and start your application! Just remember to prepare all the requirements needed, and you’ll be on your way to owning your own home in no time.
1. Check your eligibility
Make sure you’re eligible for a loan from Pag-IBIG. You can check your eligibility by visiting the Home Development Mutual Fund (HDMF) website or “Pag-IBIG Fund.” To be eligible, you must be a member of Pag-IBIG and meet specific income requirements.
To qualify for this loan, you must have at least 24 monthly savings under the Pag-IBIG Regular Savings program and proof of income.
2. Choose the right loan product
Once you know you’re eligible, it’s time to choose the right loan product. Pag-IBIG offers a range of products, including housing loans, salary deductions loans, and calamity loans. Choosing the right product for your needs is essential, so research all your options.
3. Apply for the loan
Once you’ve chosen the right product, it’s time to apply for a loan. This process is relatively simple and can usually be completed online. Be prepared to provide certain documents such as proof of income and identification.
4. Receive your loan proceeds
Once your application has been processed and approved, you will receive your loan proceeds in your bank account. Congratulations! You’re now a proud owner of a new home or car financed through Pag-IBIG.
How To Pay Pag Ibig Loans?
You can make monthly payments on your loan by authorizing Pag-IBIG to deduct the amount from your salary every month. This service is called the Salary Deduction Scheme and is available to members employed in the government or private companies that have signed up for the program. To enroll, you must fill out a Salary Deduction Authorization form and submit it to your employer. Once approved, Pag-IBIG will deduct the monthly payment from your salary and deposit it into your Pag-IBIG savings account.
There are also a few other options for making monthly payments on your Pag-IBIG loan, such as:
1. Online banking – You can set up an online bank transfer from your savings or checking account to Pag-IBIG.
2. ATM – You can make a one-time payment using your ATM card at any Pag-IBIG Fund branch nationwide.
3. Over-the-counter – You can visit any Pag-IBIG Fund branch and make a payment in person.
4. Bayad center – You can go to any Bayad Center and make a payment using your Pag-Ibig MID Number.
5. Mobile app – You can download the Pag-Ibig Fund Mobile App and make a payment using your smartphone.
Making monthly payments on your loan is essential to ensure you stay on track with your repayments and avoid late payment fees. Setting up a monthly payment plan that works for you ensures you’re always on time with your payments.
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How To Apply Housing Loan In Pag ibig?
To apply for a Pag-ibig housing loan, you must first be a member of the Pag-Ibig Fund. If your employer is enrolled, you can become a member by paying the required contributions or signing up for the Salary Deduction program.
Once you’re a member, you can begin the application process by filling out the online form on the Pag-Ibig website. You will need to provide certain documents, such as proof of income and identification. Once your application has been processed and approved, you will receive your loan proceeds in your bank account.
Requirements To Apply Housing Loan in Pag ibig
To apply for a housing loan from Pag-ibig, you must meet the following requirements:
- Be a member of Pag-Ibig for at least 24 months.
- Have made at least 24 monthly savings contributions.
- Must have proof of income.
- Must be 21 to 65 years old.
- The property you’re buying must be located in an area that Pag-Ibig covers.
If you meet all the requirements, you can begin the application process by filling out the online form on the Pag-Ibig website. Once your application has been processed and approved, you will receive your loan proceeds in your bank account.
Conclusion
Pag-Ibig is a great way to finance your new home or car in the Philippines. The process is relatively simple, and many payment options suit your needs. Research all your options and compare interest rates before applying for a loan to ensure you get the best deal possible.
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