Pag-IBIG Fund chief executive officer Marilene Acosta yesterday beamed as she reported highlights of how the agency which serves as the government’s response to the need for a national savings program and affordable shelter financing for Filipino workers fared in the first half of the year.

She quickly reminded those present at yesterday’s Kapihan, about Pag-IBIG Fund’s twin, “inseparable” mandates: the development of a sound and viable provident fund derived from members’ savings, and the use of the fund derived from such savings in promoting home ownership through affordable housing loans.

As such, Acosta said savings collected by the Fund from 16.24 million members during the first half of the year reached P76.45 billion. This is in contrast to the P51.96 billion that the Fund collected from 15.49 million members in the same period in 2023.

In terms of housing loans, Acosta said Pag-IBIG released P67.65 billion to finance the construction of a total of 47,512 units during the first half of 2024.

Also, short-term loans (STL) totaling P42.12 billion were released to 1.46 million STL borrowers from January to July this year.

Impressive profit

The Fund gained P24.3 billion in net income as of June 2024 while its total assets as of the same period stood at a whopping P986 billion.

Acosta stressed, “There is dignity in (members’) borrowing from the Pag-IBIG Fund because they are Fund members, and that’s their money.”

She said saving through the Pag-IBIG Fund is still the best way by which members can guarantee their financial health currently and secure their retirement. “The Fund is government-guaranteed, it earns dividends higher than bank interest rates and is tax exempt,” Acosta pointed out.

In 2023, Pag-IBIG members earned a 6.55 percent dividend rate for their savings. “Because dividends from Pag-IBIG savings are higher than the bank interest rate, we encourage our members to not just remit the mandatory P200 monthly savings but to also top-up these up.”

She highlighted the Fund’s popular products such as the Pag-IBIG MP2 Savings which is known for its competitive returns. “If you have set aside a good amount of money and you don’t use it for five years, this is for you. MP2 has a higher dividend rate than Regular Savings and in 2023, we declared a rate of return amounting to 7.05 percent for the product.

Needless to say, Acosta stressed that the Pag-IBIG Housing Loan remains the most affordable home financing plan in the country. How is it different from home financing by banks and other financial institutions?

She pointed out its key features which include Fund members borrowing, depending on their capacity to pay, up to P6 million, with the longest paying term of up to 30 years. Likewise, she noted that there is no penalty for advanced amortization payments.

Acosta also focused the spotlight on the Pag-IBIG Multi-Purpose Loan which is a cash loan allowing members to borrow 80 percent of his or her Pag-IBIG savings to finance immediate needs or expenses.

“The Loan,” said Acosta, “is an any-purpose loan for travel, for your kids’ school needs, minor home repairs, or initial capital outlay for your business. It has low interest rates, longer payment terms of up to three years at affordable monthly payments through accessible payment channels, and best of all, there are no rude or threatening collection agents.”

The Pag-IBIG CEO put emphasis on the fact that the Fund has been serving Filipino workers for 44 years “and we are committed to maintaining the excellence and integrity of our service so that even Gen Zs will continue to enjoy our programs until they finally retire.”