All benefits of the Pag-IBIG Fund members will double under the new monthly contribution rates to be imposed beginning next month, an official said on Thursday, January 18.
Under the new rates, the monthly savings of Pag-IBIG Fund members for both employee’s share and the employer’s counterpart shall increase from P100 to P200 each.
“All the benefits of our Pag-IBIG members will double – their maturity benefit; their savings for 20 years will double from P87,000 to P174,000,” Pag-IBIG Fund Deputy Chief Executive Officer Alexander Hilario “Alex” Aguilar said during the Bagong Pilipinas Ngayon briefing.
Aguilar said under the new rates, Pag-IBIG Fund will also have additional P38 billion that boosting the agency’s capacity to offer multipurpose and housing loans to its members.
He said the additional fund will also enable the Pag-IBIG Fund to maintain lower interest rates, particularly for housing loans.
“So, in the long run, it will be good for our members,” Aguilar said.
He said Pag-IBIG is set to launch new loan facilities, including the “Quick Loan”, in the coming months.
Aguilar said members can use their mobile phones to file applications for emergency loans amounting up to P15,000.
He said Pag-IBIG Fund is also set to roll out easy access to health and education programs among members, using their PAG-IBIG savings, this year.
Members can apply for an education loan for tuition fees payment or health loan for medical needs emergencies, he added.
He said the additional P38 billion will also be used for the Pambansang Pabahay Para sa Pamilyang Pilipino (4PH) program, one of the flagship programs of President Ferdinand R. Marcos Jr.
He said once the condominiums and other high-rise buildings under the 4PH program are constructed, Pag-IBIG Fund can offer more housing loans for its members.
Aguilar said Pag-IBIG Fund can also offer loans to the property developers under 4PH program.
“This PHP38 billion and additional fund will help a lot for the fulfillment of those projects,” he said.
Pag-IBIG Fund’s new monthly rates were initially approved by its Board of Trustees in 2019, after obtaining the concurrence of stakeholders to implement a scheduled increase in 2021.
During that time, the agency saw the increase necessary as it projected that the amount of loans disbursed will eventually outpace the total collections from both loan payments and members’ savings.
However, due to the difficulties brought about by the Covid-19 pandemic in 2021 and 2022, the Pag-IBIG Fund Board deferred the increase of the agency’s savings rates.
The agency again deferred the implementation of the increase in 2023, following the request of the Employers’ Confederation of the Philippines (ECOP) to provide the business community with time to further recover from the continuing financial challenges due to the health crisis.
The deferment was also the Pag-IBIG Fund’s response to the call of President Marcos early last year, to alleviate the financial burden of fellow Filipinos.*PNA