Pag-IBIG Fund said Friday it disbursed P50.79 billion in cash loans in the first ten months of 2023, breaking its record for the highest amount of cash loans released for any January to October period.
It said the amount benefitted 2,281,042 Pag-IBIG Fund members, also a record high.
Data showed that from January to October, the amount of short-term loans released by the agency increased by 12 percent, or P5.5 billion, from P45.29 billion released in the same period in 2022.
The number of members assisted through the program also increased by 6 percent, or 127,494, from 2,153,548 members from the previous year as more members utilized the agency’s online channel, the Virtual Pag-IBIG, to apply for cash loans.
About 743,362 members filed their loans online, an increase of 266,281 borrowers, or 56 percent year-on-year.
“We are happy to report that Pag-IBIG Fund continues to provide Filipino workers with assistance on their immediate financial needs through our cash loans. The record-high amount of loans we released, as well as the highest ever number of members aided through these loan program, show that our short-term loans are among the top choices of Filipino workers in gaining additional funds for their needs,” said Secretary Jose Rizalino Acuzar, who heads the Department of Human Settlements and Urban Development (DHSUD) and the 11-member Pag-IBIG Fund board of trustees.
“All these are part of our efforts in heeding the call of President Ferdinand Marcos, Jr. to provide the best service to the Filipino people,” said Acuzar.
Pag-IBIG Fund’s short-term loan program includes the agency’s multi-purpose loan (MPL) and calamity loan. Under the Pag-IBIG MPL, 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 proceeds can be used to pay for tuition, medical expenses, minor home improvement, a family trip or even serve as business capital.
Borrowers may choose between a 24 or 36-month payment term, with the first payment deferred for two months. The Pag-IBIG calamity loan, on the other hand, is available to members residing or working in areas declared under a state of calamity. In the past years, the agency has returned more than 90 percent of its income, mostly derived from interest on loans, to members in the form of dividends.
It said of the total amount of cash loans released by the agency, P48.32 billion represented Pag-IBIG MPLs which helped 2,131,435 members, while P2.48 billion was in the form of calamity loans which in turn aided 149,607 members.
Pag-IBIG Fund chief executive Officer Marilene Acosta cited the reliability and ease of access in availing the Pag-IBIG’s short-term loans as the main drivers for its strong growth. She noted that with more members applying for loans using the Virtual Pag-IBIG, the amount of cash loans released by the agency in January to October from online applications surged to P16.65 billion, an increase of P6.51 billion or a 64 percent increase year-on-year.
“We at Pag-IBIG Fund recognize that each and every year, millions of our members rely on our Pag-IBIG MPL for their immediate financial needs. That is why we have made the application for our cash loans more accessible and easier for our members. Today, our members can easily and conveniently apply for these loans through many channels, which include their employers or at any of our more than 200 branches nationwide. Members may now also apply for a cash loan anytime, anywhere by using our online channels, the Virtual Pag-IBIG or the Virtual Pag-IBIG Mobile App. Our members can rest assured that our programs shall always be reliable, and that we shall continuously find ways to make their benefits accessible them,” Acosta said.