1. What is pag-ibig all about and what are the benefits that we could get from being a member?

The Home Development Mutual Fund (abbreviated as HDMF), more popularly known as the
Pag-IBIG Fund, is a Philippine government-owned and controlled corporation under the
Department of Human Settlements and Urban Development responsible for the administration
of the national savings program and affordable shelter financing for Filipinos employed by local
and foreign-based employers as well as voluntary and self-employed members. It offers its
members short-term loans and access to housing programs.

Benefits
Housing Loan
The most popular program benefit of the Pag-IBIG Fund offers assistance to its members by
providing affordable financing for their housing needs. HDMF accomplishes this by working in
partnership with the local Real Estate Developers and arranging affordable loans to real estate
buyers (Pag-IBIG members).

The loan had a lower interest rate compared to the prevailing rate in the market and payable in
longer terms. Pag-IBIG Fund offers a home loan at a low 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.

Short Term Loan

Similar to the Government Service Insurance System (GSIS) and Social Security System, the
HDMF also offers financial assistance to qualified member by granting short term loan. There
are two types of loans members are qualified to avail:

Multi-Purpose Loan (MPL)

This program aims to provide financial assistance to members for house repair, minor home
improvement, home enhancement, tuition or educational expenses, health and wellness,
livelihood; or other purposes. To avail the program, a member must made at least twenty-four
(24) month membership savings, or the total savings is equivalent to twenty-four (24)
membership savings and must have at least one (1) contribution within the last six (6) months as
of month prior to date of loan application.

For members who have withdrawn their contributions due to membership maturity, the
reckoning date of the updated 24 contributions shall be the first contribution following the
month the member qualified to withdraw his MS due to membership maturity. If a member has
an existing Pag-IBIG Housing Loan, the account must not be in default as of date of application.
Should a member have an existing multi-purpose and/or calamity loan, the account/s must not
be in default as of date of application.

Calamity Loan
For members affected by unforeseen calamity like flood, fire, tropical cyclones/ typhoons,
volcanic eruption and other similar cases. Members can borrow up to 80% of their Total
Accumulated Value (TAV) subject to the terms and conditions of the program. Calamity Loan
Interest rate is 5.95% per annum. The loan is amortized over 24 months, with a grace period of 3
months. Paying period begins on the 4th month following their check date.

Provident Savings
Membership contributions to the Pag-IBIG fund is a member's individual savings, which a
member can withdraw at the maturity date. Pag-IBIG Fund makes clear that members'
contributions, plus that their employer will earn dividend. All that money, called Total
Accumulated Value (contributions plus dividend) can be withdrawn when it reaches maturity or
240 months of contributions for at least 45 years old. Unlike the money in a bank regular savings
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.