What is a salary loan pag ibig and how does it work

Financial emergencies happen, and sometimes your savings might not be enough to cover them. If you’re a Pag-IBIG member in the Philippines, you have the option of accessing a salary loan, also known as a Multi-Purpose Loan (MPL). Let’s dive into what this type of loan is, how you qualify, and the steps to get your Pag-IBIG salary loan approved.

What is a Pag-IBIG Salary Loan?

A Pag-IBIG salary loan is a short-term loan program designed to provide financial assistance to active Pag-IBIG members. Here’s what you need to know:

  • Purpose: Can be used for a variety of needs like medical expenses, tuition fees, minor home repairs, or even a small business venture.
  • Loanable Amount: You can borrow up to 80% of your total Pag-IBIG Regular Savings.
  • Interest Rate: Currently has one of the lowest interest rates on the market at 10.5% per annum.
  • Repayment Terms: Flexible terms up to 36 months (3 years), with the option of a 24-month (2 years) repayment term.

Eligibility for a Pag-IBIG Salary Loan

To qualify, make sure you meet these requirements:

  • Active Pag-IBIG Membership: You must have at least 24 months’ worth of Pag-IBIG contributions.
  • Sufficient Savings: The loan is based on your Pag-IBIG Regular Savings, so you’ll need enough to support the amount you need.
  • No Outstanding Short-Term Loans: You can’t have any outstanding Pag-IBIG short-term loans (Multi-Purpose or Calamity Loans).
  • Good Credit Standing: If you have an existing Pag-IBIG Housing Loan, you must have no payment arrears.

How to Apply for a Pag-IBIG Salary Loan

There are two ways to apply:

  1. In-Person: Visit your nearest Pag-IBIG branch and submit the following:

    • Accomplished loan application form
    • Valid ID
    • Latest payslip (if employed)
  2. Online: Apply through the Virtual Pag-IBIG portal (

Tips for Increasing Approval Chances

  • Increase Your Savings: The more you save in your Pag-IBIG fund, the higher your loanable amount becomes.
  • Pay Contributions on Time: Maintain a good contribution record to boost your credit with Pag-IBIG.
  • Organized Documents: Prepare all required documents beforehand for a smooth process.

Should You Take a Pag-IBIG Salary Loan?

A Pag-IBIG salary loan offers competitive interest rates and flexible repayment terms. It’s a viable option if you need quick financial support and you meet the eligibility criteria. However, always carefully consider whether getting a loan is the best option for your situation and ensure that you’ll be able to make the repayments comfortably.


Pag-IBIG salary loans are a helpful financial tool for Pag-IBIG members in need of short-term cash. Understanding how they work and preparing for the application process is key to getting a smooth and speedy approval.