Pag-IBIG multi-purpose loans hit record P25.6 B.
Pag-IBIG multi-purpose loans hit record P25.6 B !-- -- (The Philippine Star) - July 18, 2019 - 12:00am MANILA, Philippines Pag-IBIG Fund disbursed an all-time high of P25.57 billion in multi-purpose loans (MPL), otherwise known as cash loans, for the benefit of 1,227,023 members during the first half of 2019. MPL disbursements for the first six months of the year registered a six percent year-on-year growth and surpassed the P24.07 billion released in the same period last year by P1.50 billion. The amount of cash loans and number of members assisted by the agency through its MPL program are both the highest for any January to June period.
"We are exerting all efforts to assist Pag-IBIG members with their immediate financial needs, following the directive of President Duterte to provide Filipinos with affordable loans so that they will not resort to loan sharks. As a testament to our support to this directive, Pag-IBIG Fund in the first six months of 2019 alone has already assisted more than 1.
2 million members through the MPL program," said Secretary Eduardo D. del Rosario, chairperson of the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund board of trustees.
With Pag-IBIG Fund's MPL program, qualified members can borrow up to 80 percent of their total Pag-IBIG Regular Savings, which consists of their monthly contributions, their employer's contributions, and accumulated dividends earned. The loan is payable within 24 months and comes with a deferred first payment.
The MPL comes at an interest rate of 10.5 percent per annum. Up to 90 percent of the income derived by Pag-IBIG Fund from the loan program is returned to its members in the form of dividends.
"Our multi-purpose loan program serves as an affordable and readily-accessible source of cash loans. The MPL proceeds can be used for tuition fees, medical expenses, minor home improvement, capital for business, or even for vacation expenses," said Pag-IBIG Fund chief executive officer Acmad Rizaldy Moti.
"We recognize that our members secure an MPL to address an immediate need. It is why we work doubly hard to process their loan applications promptly.
With the stabilization of our upgraded system last year, members are now able to receive their loan proceeds in an average of 1.8 working days.
This faster processing time allowed us to serve more members, which is shown by the eight percent growth in the number of loan releases or an additional 93,886 members aided by the MPL program in the first half of this year compared to same period in 2018," he said. In total, the Pag-IBIG Fund released P26.26 billion in short term loans benefitting 1,267,616 members in the first half of this year.
This includes the amount disbursed through its MPL program and the P688.25 million in calamity loans it released to aid 40,593 members.