If you’re planning to take out a loan from Pag-IBIG soon, here’s some good news: Pag-IBIG has raised the loanable amount for its Multi-Purpose Loan (MPL) program from 80% to 90% of your total savings.
That means you can now borrow more without having to contribute more—definitely a helpful move for those who might need funds for school expenses, medical emergencies, home repairs, or even debt consolidation.
What’s Included in Your Savings?
When we say 90% of your total savings, this includes:
- Your monthly contributions
- Your employer’s contributions
- All dividends earned over the years
Pag-IBIG calls this your “Total Accumulated Value” (TAV)—and you can now borrow up to 90% of that, compared to just 80% before.
Why This Matters
Let’s say your TAV is ₱100,000:
| Previous Policy (80%) | ₱80,000 loanable |
|---|---|
| New Policy (90%) | ₱90,000 loanable |
That’s an extra ₱10,000 in your pocket—without doing anything extra on your end.
And yes, the maximum loanable amount is still ₱200,000, but what’s more relevant to most members is this percentage increase, which directly affects what you can get based on your own savings.
Interest Rate Still the Same
Despite the increase in the loanable percentage, Pag-IBIG is keeping the interest rate affordable:
| Term | Rate |
|---|---|
| Annual Interest Rate | 10.5% per annum |
| Effective Monthly Rate | 1.4583% |
Note: 10.5% per annum divided by 12 gives you 0.875% nominal per month. But because Pag-IBIG uses an add-on computation, the effective monthly rate is around 1.4583% on a diminishing balance basis.
Example Computation
Let’s say your TAV is ₱120,000.
| 90% of TAV | ₱108,000 loanable |
|---|---|
| Add-on Interest (2 yrs) | ₱22,680 (approx) |
| Monthly Payment (24 mos) | ~₱5,450 |
These numbers are for illustration only—but you can see how the extra 10% really adds up.
Important Notes
- Loan Term: Up to 36 months
- First payment: Starts 2 months after loan release
- Where to apply: Virtual Pag-IBIG, in-branch, or via your employer
- Loanable % of savings: Now 90% (was 80%)
- Maximum loanable amount: ₱200,000
Final Thoughts
This quiet tweak from 80% to 90% may seem small on paper, but it’s a big help in practice—especially for long-time contributors. If you’re planning to borrow soon, this lets you access more of your own savings without any extra hassle.
Just remember: a bigger loan also means bigger monthly payments. So borrow wisely.
FAQs
How much can I borrow from Pag-IBIG in 2025?
You can now borrow up to 90% of your total savings (TAV) or ₱200,000, whichever is lower.
When was the 90% policy implemented?
Pag-IBIG quietly rolled out this change in July 2025.
What is Pag-IBIG’s Multi-Purpose Loan interest rate?
Still at 10.5% per annum, computed via add-on method, resulting in an effective monthly rate of around 1.4583%.
How do I apply for an MPL loan?
You can apply online via Virtual Pag-IBIG, through your employer, or at the nearest branch.