Pag-IBIG releases P40-B loans in Jan-Sept
Credit to Author: The Manila Times| Date: Fri, 08 Nov 2019 16:16:37 +0000
THE Home Development Mutual Fund (Pag-IBIG Fund) has disbursed P39.87 billion in cash loans in the first nine months of 2019, benefiting more than 1.9 million members.
In a statement, Secretary Eduardo D. del Rosario, chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund Board of Trustees, said the “amount released, and the number of members helped by our MPL (Multipurpose Loan) program in the last nine months, are the highest for any January-to-September period in the history of the Pag-IBIG Fund.”
“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 through” the program, he added.
According to Pag-IBIG, the 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 gavings, which consists of their monthly contributions, their employer’s contributions, and accumulated dividends earned.
Proceeds can be used to pay for tuition, medical expenses, minor home improvements, family trip or capital for small businesses. The loan is payable in 24 months, with the first payment deferred for two months. The MPL has 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.
Noting the upward trend in the program, Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said the latest amount increased by 9 percent or P3.39 billion and the number of borrowers grew by 10 percent or 165,397 borrowers from figures in in the same period last year.
He 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,” Moti said.
In total, Pag-IBIG released P40.89 billion in short-term loans benefiting 1,960,102 members as of end-September. This includes the amount disbursed through the MPL program and the P1.02 billion worth of calamity loans released to 60,083 members.