In a move aimed at expanding financial support for Filipinos, the government-run Pag-IBIG Fund has announced key changes to its loan programs—including higher borrowing limits and relaxed eligibility rules—to provide easier and faster access to funds for its members.
Starting May 16, 2025, members applying for a Multi-Purpose Loan (MPL) or other short-term financial aid such as the Calamity Loan or Health and Education Loan Programs (HELPS) will be able to borrow up to 90% of their total regular savings. This is a notable increase from the previous borrowing cap of 80%, giving members a larger safety net during times of financial need.
“This enhancement enables our members to access more funds precisely when they need them most,” the agency shared in its latest announcement.
The new policy also introduces greater benefits for members with upgraded savings, as the amount they can borrow is directly tied to their total contributions.
Shorter Contribution Period for Loan Eligibility
In another significant update, Pag-IBIG has lowered the minimum membership requirement from 24 months to just 12 months, allowing newer members to qualify for loans more quickly.
“By easing the eligibility criteria, we’re helping members—especially first-time borrowers—gain quicker access to financial support,” the fund added.
Existing borrowers under the older guidelines aren’t left behind, either. They will be able to apply for additional loan amounts under the updated terms if they are eligible for increased loan entitlements.
More Flexible Repayment Terms
To give borrowers better control over their finances, Pag-IBIG is also introducing a new one-year repayment term for its MPL program. This is in addition to the current two- and three-year payment options, giving members greater flexibility in managing their repayment schedules.
Despite these updates, the loan remains highly affordable. Pag-IBIG assures that its monthly interest rate will stay at 1.4583%, one of the lowest among government-backed loan programs.
Loan Releases Set to Surge in 2025
Last year, the fund released ₱70.3 billion in cash loans, benefiting over 3.2 million members—the highest on record. For 2025, Pag-IBIG aims to assist approximately 3.6 million members, with projected loan releases reaching ₱95.3 billion.
These enhancements signal Pag-IBIG’s commitment to adapting its financial services to meet the changing needs of Filipino workers, especially amid rising living costs and unexpected expenses.