Pag-Ibig multi-purpose loans rise to P11.7 billion in Q1

MANILA, Philippines — State-run Home Development Mutual Fund (HDMF) or the Pag-IBIG Fund has disbursed P11.67 billion in multi-purpose loans (MPL) or cash loans to some 571,681 members in the first quarter, the agency said yesterday.

In a statement, Pag-IBIG said its MPL loan releases during the first three months grew by seven percent to P11.67 billion from the P10.92 billion recorded in the same period last year.

The state fund said the amount of cash loans released, as well as the number of members assisted by the agency through its MPL program, are both the highest ever recorded for any January-March period.

Eduardo del Rosario, chairperson of the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund Board of Trustees, said the more aggressive lending activities of the agency under its MPL program is in line with the government’s thrust to provide affordable financial products to Filipinos.

“We are exerting all efforts to help Pag-IBIG members following the directive of President Duterte to provide Filipinos with affordable loans so that they will not turn to loan sharks,” he said.

Pag-IBIG Fund chief executive officer Acmad Rizaldy Moti, for his part, attributed the increase in MPL releases during the period to the improvement of the state fund’s system last year.

“We understand that our members borrow through MPL because of an immediate need, so we made sure that we will be able to process their loan applications promptly,” Moti said.

“With the stabilization of our upgraded system last year, members are now able to receive their loan proceeds in an average of 1.7 working days. This faster processing time allowed us to serve more members, which is reflected in the 11 percent growth in the number of loan releases or an additional 57,865 members we have served from January to March this year against the same period in 2018,” he said.

Under the MPL program, qualified members can borrow up to 80 percent of their total Pag-IBIG regular savings, which consist of their monthly contributions, their employer’s contributions, and accumulated dividends earned.

The loan is payable within 24 months and comes with a deferred first payment. It also comes at an interest rate of 10.5 percent per annum.

 “While Pag-IBIG is known for our housing loan programs, our multi-purpose loan program serves as an affordable and readily-accessible source of cash loans. The MPL proceeds can be used for tuition fees, medical expenses, minor home improvement, capital for business, or even for vacation expenses,” Moti said.

In total, Pag-IBIG said it released a total of P12.05 billion in short-term loans to 593,269 members in the first quarter of 2019.

Pag-IBIG said the amount includes those amount disbursed through its MPL program and the P384.03 million issued to 21,588 members under its calamity loan program.