PAG ibig Fund HDMF is also Known as the Home Development Mutual Fund.
The Home Development Mutual Fund (HDMF), commonly known as the Pag-IBIG Fund, is a government-owned and controlled corporation responsible for the administration of the national savings program and affordable shelter financing for Filipinos. The Pag-IBIG Fund was founded on June 11, 1978 to answer the needs of a national savings program and affordable housing financing for the Filipinos. It is administered and governed by the National Home Mortgage Finance Corporation (NHMFC), a government corporation that is mandated to increase the housing loans availability to Filipino workers. It’s mission is to generate more savings from Filipino workers and provide accessible funds for housing of every member.
Membership of the fund is mandatory to all workers.
Provident Savings
All contributions to the Pag-IBIG fund made by its member is member’s individual savings, which a member can withdraw at the maturity date or once the member retires. Pag-IBIG Fund makes clear those members’ contributions, plus that their employer will earn dividend. All that money, will be called. Total Accumulated Value (contributions plus dividend) can be withdrawn when it reaches maturity or the member retires. Unlike the money in a bank where the interest rate is given, member’s earnings in the fund is not readily foreseen ahead of time. It essentially participating in an investment and membership earnings will depend on the overall performance of that investment.
Pag-IBIG MPII
The MP2 Savings Program is a savings program for members who wish to save more and earn higher dividends than the regular Pag-IBIG Savings Program. This is a voluntary only and has a minimum savings of P500 per month with a maturity period of 5 years.
Dividend varies yearly and is computed based on the fund’s financial performance for the said year. The MP2 Savings earn dividends at a higher rate than that of the regular Pag-IBIG Savings Program the dividend you earn are tax-free.
Contributions can be made through various payment channels or via salary deduction through employer arrangement
Benefits of the fund
1. Housing Loan
Housing loan is the most popular program benefit of Pag ibig Fund. PAG-IBIG is the biggest housing loan providers in the Philippines because it offers lower interest rates and longer payment terms compare to local banks. Pag-IBIG Fund offers a home loan at an interest rate of 4.5% (for ₱450,000 loan) with a loan term of up to 30 years. A qualified member can get a maximum loan amount of up to ₱ 6 Million.
2. Short Term Loan
The Loan granted by HDMF for financial assistance to the qualified member which is payable within 2 years. There are two types of Short Term loans members are qualified to avail:
A. Multi-Purpose Loan (MPL)
- The Pag-IBIG Fund Multi-Purpose Loan or MPL is a cash loan designed to help the members with immediate financial need such as house repair, minor home improvement, educational and health expenses or other purposes. . A member can borrow up to 80% of their Pag-IBIG Regular Savings, and can be processed in as fast as 5 days! This loan is payable within two years but you have the option to pay it earlier. If you want to pay earlier please make arrangement with your payroll officer. The loan payment is deducted in your salary and it will be your employer who will pay directly to the Pag-ibig Office.
Requirements in Availing the Multi-Purpose Loan (MPL)
A member must made at least two years membership savings, or the total savings is equivalent to twenty-four membership savings and must have one contribution within the last six months as of month prior to date of loan application.
This loan is payable within two years but you have the option to pay it earlier. If you want to pay earlier please make arrangement with your payroll officer. The loan payment is deducted in your salary and it will be your employer who will pay directly to the Pag-ibig Office.
Subsequent loan is allowed upon payment of at least 50% of the current loan.
Procedure in Availing the Multi-Purpose Loan (MPL)
- Submit the accomplish Multi-Purpose Loan Application Form with the supporting documents required
- Get the STL Acknowledgement Receipt (HQP-SLF-121)
- Wait for the txt informing you that your loan proceeds is credited in your account.
B. Calamity Loan
Calamity Loan is a financial assistance given to the member affected by calamity like tropical cyclones/ typhoons, volcanic eruption and other similar cases. This place should be declared as a State of Calamity by the national government.
Calamity Loan Interest rate is 5.95% per annum and is payable within two years.
All About Social Security System
” PAG-ibig Fund gives a way for the Filipinos to own a decent House”
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