MANILA, Philippines — The Home Development Mutual Fund, commonly known as Pag-IBIG Fund, released P26 billion in short-term loans during the first semester of the year to help members access additional funding.
In a statement, Pag-IBIG said it disbursed P26.17 billion in cash loans in January to June, benefiting some 1.18 million members.
Pag-IBIG’s short-term loan program includes the agency’s multi-purpose loan (MPL) and calamity loan.
Specifically under the MPL, Pag-IBIG disbursed P3.61 billion or roughly 15 percent of the total to 134,140 members with tuition and enrolment fees, and other school-related expenses.
Under the MPL, qualified members can borrow up to 80 percent of their total Pag-IBIG regular savings, which consists of their monthly contributions, their employer’s contributions, and accumulated dividends earned.
The proceeds may be used to pay for tuition fees, medical expenses, minor home improvement, a family trip, or can serve as capital for small businesses.
Borrowers may choose between a 24 or 36 month payment term and are provided a two-month grace period prior to their first payment.
The MPL comes at an interest rate of 10.5 percent per annum.
Pag-IBIG Fund CEO Marilene Acosta said the agency continues to provide convenient ways of applying for a loan through its online and offline facilities.
Pag-IBIG has 15.4 million active members and has over P800 billion in total assets which is expected to reach P1.5 trillion by 2028.