MANILA – The state-owned and controlled company Pag-IBIG Fund has facilitated the payment of cash loans for Filipinos with an extended payment term of up to three years.
In a statement released Thursday, September 9, Department of Human Settlements and Urban Development (DHSUD) Secretary Eduardo del Rosario and the Board of Directors of the Pag-IBIG Fund said his agency was continuing to improve its programs to meet the needs of its members amid the COVID-19 pandemic.
“We are extending the term of our cash loans from two to three years to give borrowers more time to repay their loans, and more importantly, to reduce their monthly payments,” they said.
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 provide 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.
Pag-IBIG Fund CEO Acmad Rizaldy Moti said that by their calculation they reduced the monthly payments by almost a third with the extension of the payment period.
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 were reduced by 28% for the MPL and by 31% for the Calamity Loan.
“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’ve also made the loan application process safer and more convenient by accepting loan applications. in line“said Moti.