Pag-IBIG Fund has disbursed P39.87 billion cash loans in the last nine months breaking its record on highest cash loan disbursement in any January to September period. The amount released benefited 1,900,019 Pag-IBIG Fund members.
“Following the directive of President Rodrigo Roa Duterte to provide Filipinos with affordable loans, we’re exerting all efforts to assist Pag-IBIG members with their immediate financial needs though our Multi-Purpose Loan or MPL. On behalf of the entire Pag-IBIG Fund Board of Trustees, I’m happy to report that the amount released, and the number of members helped by our MPL program in the last nine months are both the highest for any January to September period in the history of Pag-IBIG Fund,” said Secretary Eduardo D. del Rosario, Chairperson of the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund Board of Trustees.
Pag-IBIG Fund’s MPL program serves as an affordable and readily-accessible source of funds. 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 proceeds can be used to pay for tuition fees, medical expenses, minor home improvement, a family trip, or even serve as capital for small businesses. The loan is payable in 24 months with the first payment deferred for two months. The MPL comes at an interest rate of 10.5 percent per annum. Up to 90 percent of the income derived by the agency from the program is returned to its members in the form of dividends.
Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti, meanwhile, noted the upward trend in the loan program, saying that the amount of MPL released in January to September increased by 9 percent or P3.39 billion while the number of borrowers increased by 10 percent or 165,397 borrowers, compared to the same period last year. Moti attributed these record-high numbers to the loan program’s reliability and faster processing in 2019.
“We still have one quarter left in the year but we’re seeing double-digit growth in the MPL as early as now. With the increased demand, we’re working doubly hard to process our members’ loan applications promptly. This year, with our upgraded system fully in place, members are now able to receive their loan proceeds at an average of 1.8 working days. This faster processing time allowed us to serve more members this year," he said.
In total, the Pag-IBIG Fund released P40.89 billion in short term loans benefitting 1,960,102 members in the last nine months. This includes the amount disbursed through its MPL Program and the P1.02 billion in Calamity Loans it released to aid 60,083 members.