Pag-IBIG releases P16 billion short-term loans to members

MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG Fund, released P16.44 billion in short-term loans in the first four months to help members access additional funding.

In a statement, Pag-IBIG said it disbursed P16.44 billion in cash loans from January to April, benefiting some 766,000 members.

Pag-IBIG’s short-term loan program includes the agency’s multi-purpose loan (MPL) and calamity loan.

Of the total loans released, bulk or 96 percent at P15.82 billion were coursed through MPLs, aiding 728,652 members.

The remaining P620 million were released in the form of calamity loans that helped nearly 40,000 members.

Under the MPL, 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 may be used to pay for tuition fees, medical expenses, minor home improvement, a family trip, or can serve as capital for small businesses.

Borrowers may choose between a 24 or 36-month payment term and are provided a two-month grace period prior to their first payment.

The MPL comes at an interest rate of 10.5 percent per annum.

The calamity loan, on the other hand, is available to members residing or working in areas declared under a state of calamity.

Pag-IBIG Fund CEO Marilene Acosta said the agency continues to provide convenient ways of applying for a loan through its online and offline facilities.

Pag-IBIG has 15.12 million active members and has P800 billion in total assets, which is expected to reach P1.5 trillion by 2028.