Pag-IBIG growing, offering more short-term loans

Pag-IBIG Fund is eyeing a 34.5-percent growth in short-term loans this year.

Fund CEO Marilene Acosta said this is higher than the P37.24-billion given out last year and would account for 50.96-percent of the nationwide target of P98.32 billion.

To intensify its financial support to its members, the government-owned lender increased the loanable portion of the members’ savings to 90 percent from 80 percent.

Acosta said loans will now be processed more quickly, as Pag-IBIG has reduced the membership contribution period required before a loan application from 24 months to 12 months.

She said the new inclusive rules will benefit 3.62-million borrowers of short-term loans nationwide.

From this, Pag-IBIG Fund targets 2.01-million borrowers in Metro Manila, Cavite and Bulacan, an increase from the 1.8-million borrowers recorded last year.

“We continue to ease and speed up our processes as an affirmation of our dedication to provide Filipinos financial support whenever they need it,” Acosta said last Friday in her speech on Pag-IBIG Fund’s performance in the National Capital Region.

Pag-IBIG Fund offers two kinds of short-term loans. The first is the Multi-Purpose Loan which provides borrowers with quick cash to cover essential items and services such as home appliances, education, and healthcare.

The second is the Calamity Loan Program which offers financial assistance to victims of natural disasters to help them recover swiftly.

Pag-IBIG Fund expects its total assets to grow by 10 percent to P1.2 trillion this year from 1.09 trillion in 2024.

“This will enable us to further enhance and extend our services. Our strong performance last year and goals for this year reflect our strong capacity for financial management,” Acosta said.