MANILA, Philippines — Member savings collections of the Home Development Mutual Fund, commonly known as Pag-IBIG, reached almost P100 billion as of the third quarter, allowing the agency to finance the higher demand for home loans.
In a statement, Pag-IBIG said its members saved P98.72 billion from January to September, soaring by 48 percent from P66.73 billion in the same period last year.
Half of the savings at P49.27 billion under the Pag-IBIG Regular Savings reached P49.27 billion, growing by 56 percent from last year’s P31.6 billion.
Pag-IBIG implemented in February the new mandatory monthly savings rates of P200 for both the employees and the employers’ share.
The increase was the first ever hike that Pag-IBIG implemented since it was established in 1986.
The other half of the savings amounting to P48.86 billion came from the agency’s Modified Pag-IBIG 2 Savings (MP2), a voluntary program for its members.
The MP2 program has higher dividends and has a five-year maturity period and a minimum savings requirement of only P500. It is open to retirees and pensioners who are former Pag-IBIG members.
Apart from its members’ savings, Pag-IBIG also reported that it released P55.64 billion in short-term loans during the nine-month period to help members access additional funding.
The cash loans benefitted nearly three million members. Pag-IBIG’s short-term loan program includes the agency’s multi-purpose loan (MPL) at P49.72 billion and calamity loan at P5.92 billion.
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 and 36-month payment term and are provided a two-month grace period prior to their first payment.