In the first three months of 2019, Pag-IBIG Fund disbursed a record-high P11.67 billion in multi-purpose loans (MPL), otherwise known as cash loans, to assist 571,681 members. MPL disbursement for the first quarter of 2019 registered a 7 percent year-on-year growth and exceeded the P10.92 billion released in the same period last year by P751 million. The amount of cash loans and number of members assisted by the agency through its MPL program are both the highest for any January-March period.
“We are exerting all efforts to help Pag-IBIG members following the directive of President Rodrigo Roa Duterte to provide Filipinos with affordable loans so that they will not resort to loan sharks. In the first quarter of 2019, MPL disbursements helped 571,681 members with their immediate financial needs,” said Secretary Eduardo D. del Rosario, chairperson of the Housing and Urban Development Coordinating Council and the Pag-IBIG Fund Board of Trustees.
With Pag-IBIG Fund’s 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. The MPL comes at an interest rate of 10.5 percent per annum. A significant part of the income derived by Pag-IBIG Fund from the loan program is returned to its members in the form of dividends.
“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,” said Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy P. Moti.
“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. 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% growth in the number of loan releases or an additional 57,865 members we have served from January to March this year against same period in 2018,” he added.
In total, the Pag-IBIG Fund released P12.05 billion in short term loans benefitting 593,269 members in the first quarter of this year. This includes the amount disbursed through its MPL Program and the P 384.03 million in Calamity Loans it released to aid 21,588 members.