Pag-Ibig increases loanable amounts

Pag-Ibig Fund Cebu came up with amendments, beginning January of last year, wherein loanable amounts to eligible borrowers were increased depending on the number of contributions that these members have made to the Fund, this was learned from its branch manager Victoria dela Peña.

The amendments were made to encourage members to avail of the Pag-Ibig Multi-Purpose Loan (MPL) program. Members with 59 months contributions will avail of the total accumulated value, while those with 60-119 months contributions will have a 70 percent loanable amount of the total accumulated value.

Those with 120 contributions will avail of at least 80 percent of the total accumulated value. Last year, only 60 percent loanable amount was allowed for members who wished to avail of the program.

Dela Peña said Pag-Ibig has at least 431,550 members in Cebu at present, but only around 114,189 members have availed of the MPL program.

In 2005, Pag-Ibig Fund released some P1.4 billion in multi-purpose loans to 114,189 member-borrowers.

The MPL program is a short-term loan, which aims to provide immediate financial assistance to members who have remitted at least 24 monthly contributions.

MPL proceeds may be used to finance minor home improvement, small-scale livelihood plans, medical and educational purposes, purchase of appliances and furniture, and for other purpose the member may deem appropriate.

Multi-purpose loans at present are released in ATM through Pag-ibig's Payroll Credit System Validation or PACSVAL. Under the facility, the fund can release loans directly to the Land Bank of the Philippines ATM account of its members.

As listed by the Securities and Exchange Commission, the Fund is among the top 10 most profitable corporations in the country and is the most profitable tax-paying government corporation. - Jasmin R. Uy