Adi Joaquim Tolentino

Millions of Filipino workers can now access larger loans and qualify more quickly, following the latest enhancements to the Pag-IBIG Fund’s Multi-Purpose Loan (MPL) program in response to the growing and urgent financial needs.

Photo Courtesy of MDVEdwards/Shutterstock.

In a press briefing on May 6, Presidential Communications Office Undersecretary Claire Castro said that beginning on May 16, Pag-IBIG Fund members can borrow up to 90 percent of their total savings, a significant increase from the previous 80 percent cap.

“Isa pa pong good news para sa miyembro ng Pag-IBIG; mas pinalaki at pinadali na lang pag-qualify sa Pag-IBIG Multi-Purpose Loan,” Castro said.

Under the upgraded MPL, the required contribution period for loan eligibility has been reduced from 24 months to just 12 months, enabling members to access cash assistance more quickly.

Pag-IBIG Fund Chief Executive Officer (CEO) Marilene Acosta confirmed the changes, saying they were designed to benefit both new and long-time members as she emphasized that the loan amount is now directly based on the borrower’s total savings, which means that members with higher savings contributions are entitled to even larger loans.

“This increase ensures members have greater access to financial resources when needed most,” she said.

Members with upgraded Regular Savings may borrow even more, as their loan entitlement is directly tied to their total savings.

“Para sa miyembro, dinagdagan at in-upgrade ang kanilang regular saving lalo pang tataas ang kanilang loan amount dahil nakabase sa kanilang ipon ang kanilang mahihiram,” Castro added.

Housing Secretary Jose Rizalino Acuzar, who chairs the Pag-IBIG Board of Trustees, said the changes align with President Marcos’ directive for accessible financial services.

“By offering bigger loans and reducing the eligibility period, we are making sure that more members can benefit quickly and effectively from the MPL,” Acuzar noted.

A new one-year repayment term was also introduced, complementing the existing two and three-year options to give borrowers greater flexibility.

Pag-IBIG emphasized that despite the higher loanable amounts, the interest remains affordable at 1.4583 percent monthly.

Acosta said that the bulk of interest earnings are returned to members as dividends.

“These loans help members start businesses, pay tuition, cover medical expenses, or improve their homes,” she stated.

The enhancements also extend to other short-term loan programs like the Health and Education Loan Programs (HELPS) and the Calamity Loan.

Members with active loans under previous MPL terms may still apply for additional funding under the new guidelines.

Last year, Pag-IBIG disbursed a record of 70.3 billion pesos in cash loans to over 3.2 million members.

For 2025, the agency is targeting 95.3 billion pesos in loan releases to support 3.6 million members.