Pag-IBIG releases P54 B short term loans in 2022
The Home Development Mutual Fund, commonly known as Pag-IBIG Fund, released close to P54 billion in short-term loans last year to help members access additional funding.
In a statement, Pag-IBIG said it disbursed P53.76 billion in cash loans in 2022, up by 21 percent from the P44.3 billion released in 2021.
Last year’s short-term loans benefited a record 2.61 million Pag-IBIG members from just 2.09 million the year prior.
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 93 percent at P49.85 billion were coursed through MPLs, aiding 2.31 million members.
The remaining P3.91 billion were in the form of calamity loans, which helped nearly 300,000 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.
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 higher disbursement was driven by the reliability and ease of access in availing the agency’s short-term loans.
“We are aware that millions of our members rely on our MPL for their immediate financial needs and our calamity loan to help rebuild their lives,” Acosta said.
“Our members can easily and conveniently apply for these loans through many channels, which include their employers, our more than 200 branches and services offices nationwide, or online via the Virtual Pag-IBIG or the Virtual PagIBIG mobile app,” she said.
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.