Pag-IBIG Fund exceeds cash loan target in first half as takeouts rise
STATE-RUN Pag-IBIG Fund saw a climb in its cash loan takeout in the first six months of the year, breaching its target for the period.
In a statement e-mailed to reporters on Thursday, Pag-IBIG Fund or the Home Development Mutual Fund said it disbursed a total of P24.7 billion in cash loans or short-term loans (STL) to its members in the January to June period, 8% up from the P22.8 billion disbursed in the first half of 2016.
STLs at end-June surpassed the firm’s guidance for the period by 2%.
“In the last six months, STL disbursements helped 1.12 million members answer their immediate financial needs,” Housing and Urban Development Coordinating Council (HUDCC) Chairperson Eduardo D. Del Rosario, who also heads the Pag-IBIG Fund Board of Trustees, was quoted saying in a statement.
By end-2017, the state-run firm eyes to release P48 billion worth of short-term loans, P65 billion in housing loans, have P34 billion in membership savings and expand its total membership base to 18.8 million Filipinos.
“While Pag-IBIG is known for our housing loan programs, our short-term loan program serves as an affordable and readily-accessible source of cash loans. The MPL proceeds can be used for minor home improvement, tuition, capital for business, unforeseen expenses, or even a vacation, among others. On the other hand, the CL is open to members living in areas declared under a state of calamity to help them rebuild their lives after the calamity, and has the lowest interest rate in the market,” said PagIBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti.
Under its STL program, qualified members can borrow up to 80% of their total savings in the Fund, consisting of their monthly contribution, employer’s contributions and accumulated dividends earned yearly.
The cash loan facility has multi-purpose loans and calamity loans, both of which are payable within two years and come with deferred first payments for as long as three months.
“With bigger STL releases than last year, we are pretty much on track to make 2017 a much better year than 2016,” Mr. Moti was quoted as saying in a statement.
Pag-IBIG Fund’s net income reached P24.91 billion by end-2016, higher than the P20.2 billion recorded in 2015. Its total assets likewise grew to P439.6 billion in 2016 from the P397.64 billion seen the year prior.
It also expanded its physical footprint as of last year to 119 branches, up slightly from the 112 branches seen at end-2015. — J.M.D. Soliman
