THE Home Development Mutual Fund (Pag-IBIG Fund) said it released a record-high P25.57 billion in multipurpose loans (MPL), otherwise known as cash loans, during the first six months of 2019.
In a statement, Pag-IBIG Fund said an all-time high 1.22 million members availed of the cash loans.
MPL disbursements rose by 6% from the P24.07 billion released during the January to June period in 2018.
“We are exerting all efforts to assist Pag-IBIG members with their immediate financial needs, following the directive of President Rodrigo Roa Duterte to provide Filipinos with affordable loans so that they will not resort to loan sharks. As a testament to our support to this directive, Pag-IBIG Fund — in the first six months of 2019 alone — has already assisted more than 1.2 million members through the MPL program,” Eduardo D. del Rosario, chairperson of the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund board of trustees, said.
Under the MPL program, qualified members can borrow up to 80% 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, with deferred first payment. The MPL has an interest rate of 10.5% per annum.
“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,” Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti said.
Pag-IBIG Fund members can receive their loan proceeds in an average of 1.8 working days.
“This faster processing time allowed us to serve more members, which is shown by the 8 percent growth in the number of loan releases or an additional 93,886 members aided by the MPL program in the first half of this year compared to same period in 2018,” Mr. Moti added.
Overall, the Pag-IBIG Fund released P26.26 billion in short term loans benefitting 1,267,616 members in the first half of this year. Aside from the MPL, P688.25 million in calamity loans were released to 40,593 members.
