Pag-IBIG fund makes cash loans more affordable
The Filipino star
September 10, 2021 | 00h00
MANILA, Philippines – Pag-IBIG Fund has made its cash loans more affordable by extending its payment term to three years, senior officials said yesterday.
âIn these difficult times, we continue to improve our programs to meet the needs of our members. Last year, we launched special programs such as a payment moratorium and grace periods under Bayanihan laws, to help our borrowers manage their finances. This year, we are extending the term of our cash loans from two years to three years to give borrowers more time to repay their loans, and most importantly, to reduce their monthly payments. This is our response to President Duterte’s call to provide the services needed to help more Filipinos recover from the pandemic, âsaid Secretary Eduardo del Rosario, Chairman of the Department of Human Settlements and Urban Development (DHSUD ) and 11 members. Board of Directors of the Pag-IBIG Fund.
The Pag-IBIG Fund’s cash loans are in the form of a multipurpose loan (MPL) and a disaster loan (CL) for disaster areas. Also known as Short Term Loans (STLs), MPL and CL are affordable and easily accessible sources of funds for its members. Qualified members can borrow up to 80 percent of their total Pag-IBIG regular savings, which consists of their monthly savings, matching contributions from their employer and dividends earned annually.
The proceeds can then be used to pay for tuition, medical bills, minor home renovations, as capital for small businesses, or as an emergency disaster fund.
âPag-IBIG cash loans are paid over 24 months. And now our members have the option to extend the term to 36 months. By choosing a longer payout period, members can benefit from significantly lower monthly payouts, âPag-IBIG Fund CEO Acmad Rizaldy Moti said.
Moti said that by their calculations, they reduced the monthly payments by almost a third. With an average cash loan of 20,000 pesos, members pay 1,016.52 pesos per month for an MPL and 897.23 pesos per month for a disaster loan with a two-year payment term.
However, with the new three-year payment term option, the amount of each monthly payment will be reduced to just P 734.57 per month for an MPL and P 615.72 per month for a catastrophe loan. With payments spread over a longer period, the monthly payments have been reduced by 28% for the MPL and by 31% for the Calamity Loan.
âWe recognize that these are difficult times and we are doing all we can to help our members as the health emergency continues. From January to July alone, we released 25.42 billion pesos in cash loans to help over 1.1 million members. We are ready to help more members in the months to come, now that the extended payment deadline has made our cash loans even more affordable. We have also made the loan application process safer and more convenient by accepting loan applications online through the virtual Pag-IBIG. It’s Lingkod Pag-IBIG at work, especially when the members need us the most, âMoti said.