Government Home Development Mutual Fund or Pag-IBIG Fund announced that it’s increasing the cap or the maximum amount that its members can loan.

Pag-IBIG said its members, availing of multi-purpose loan, could borrow up to 90% of their total regular savings with the agency, from the previous cap of 80%.

“This increase ensures members have greater access to financial resources when needed most,” it said in a press statement.

The fund added that members with upgraded regular savings could avail of larger loans, “as loan entitlement is directly based on their total savings.”

Pag-IBIG said the increased cap also applies to those availing of its short-term loan programs such as the Health and Education Loan Programs (HELPS) and the Calamity Loan.

Apart from the raised loan cap, the fund also tweaked the eligibility requirements for members seeking to secure loans from the agency.

It said that members are now qualified after contributing for only 12 months —down from the previous 24-month requirement.

“This reduction allows newer members to swiftly access funds for their immediate financial needs,” Pag-IBIG said.

Meanwhile, members with existing loans under the previous guidelines may still apply for an additional loan under the enhanced loan programs’ terms, “should they require extra funds as a result of the increased loan entitlement.”

Pag-IBIG said the “enhancements” shall take effect starting May 16, 2025.

Moreover, Pag-IBIG said its multi-purpose loan would have a new one-year repayment term, complementing the existing two- and three-year repayment options.

“This additional term provides greater flexibility, allowing members to tailor their loan repayments according to their individual financial capacity,” it said.

For her part, Pag-IBIG CEO Marilene Acosta said that even with the “enhancements,” the fund’s multi-purpose loan remains affordable with a monthly interest rate of 1.4583%.

In 2024, Pag-IBIG said it released P70.3 billion in cash loans to more than 3.2 million members—the highest amount disbursed in a single year.

For 2025, the fund is targeting to assist an estimated 3.6 million members with projected cash loan releases reaching P95.3 billion.