"Anti-depression" loans now available

CEBU, Philippines - Education, livelihood and even vacation loans dubbed as “anti-depression” loan can now be availed from the Home Development Mutual Fund (Pag-IBIG Fund).

In a report from the ABS-CBN website, Pag-IBIG Fund chief executive officer Darlene Berberabe said members who are feeling depressed and want to go on a vacation can get a short-term loan.

However, these short-term loans will also depend on the amount of one’s savings in Pag-IBIG. Those who wish to avail must have been contributing to the fund for two years.

She said it is a loan against the savings. If you have a savings of P20,000, then 80 percent of the said amount or P16,000 can be borrowed. The interest rate is 10.75 percent, which is lesser than credit card.

This loan is already starting to sound good with local Pag-IBIG members in the Cebu City.

“Ganahan ko ana! It is giving privilege for those who want to unwind without thinking too much about the cost. It will give opportunity to those who are earning a minimum salary to enjoy a little bit of luxury in life,” said Timmy Rose Mahidlawon, 25, a guest services associate at Costabella Tropical Beach Hotel, and a member of Pag-IBIG for four years now.

For Charlie Mesa, 33, a financial analyst at Lexmark Research and Development Corp. and a Pag-IBIG member for ten years now, the said loan will benefit both the member and Pag-IBIG, as it is also income generating.

“It is no longer difficult to go on a vacation because you already have money ready for you to have ample time to relax. This is also good for Pag-IBIG as they will also earn from this, as this is an income generating as well. It’s good that their loans are no longer limited to housing and multi-purpose loans,” he said.

Duchess Veloso, a public school teacher at City Central School, is also positive about this new development made by Pag-IBIG Fund as long as it is not abused and it will really be used for the said purpose.

“If it does not adversely affect the job performance of the members of Pag-IBIG and if it’s for the betterment of their psychological, physical and emotional well-being, and wants to improve their situation, then I should say that it is a good move of Pag-IBIG. Provided that the members, who will benefit for this, will be using that for the said purpose,” she said.

As for the housing loans, Pag-IBIG Fund members can now borrow as much as P6 million from the previous limit of P3 million, which was approved by the board last week.

They will have a credit scoring system, wherein they will evaluate the borrower’s capacity to pay, but the maximum loanable amount is P6 million.

The Pag-IBIG board also agreed to lower the interest rate to 7.98 percent with three years repricing, from the previous 11.5 percent so it can compete with private banks.

Pag-IBIG recently launched a socialized housing program where minimum wage earners can borrow money at a subsidized interest rate of 4.5 percent. The maximum loanable amount for this program is P400,000.

Household workers, transport workers and minimum wage earners can borrow money at a subsidized rate. Pag-IBIG subsidized the interest rate because the market rate is at eight percent.

For instance, the monthly amortization for a P400,000 loan at 4.5 percent interest is P2,000 a month.

Berberabe acknowledge that for some minimum wage earners, paying P2,000 a month is still too much. But she added that if they will only borrow P100,000, it will only be P700 to P800 a month. (FREEMAN)