The Home Development Mutual Fund (Pag-IBIG Fund) plans to increase its membership contribution rate to further improve its financial capability and meet the demands of members for more loans and benefits. This was the statement disclosed by Jaime Fabiaña, Pag-IBIG chief executive officer.
The Fund’s housing loan disbursements have been growing consistently for the last eight years.
For the first seven months of the year alone, housing loan approvals have reached P25.3 billion, up by 36 percent from the P18.5 billion level for the same period in 2008.
“On a daily basis, Pag-IBIG is able to assist almost 300 members in acquiring or building their own houses,” Fabiaña said.
The Fund lends out about P160 million in housing loans every day.
Compared with other government institutions like the SSS, the GSIS and the PhilHealth which have adjusted their rates several times in the past 23 years, the Fund has retained the same contribution rates since 1986,” Fabiaña said.
The planned increase in the contribution rates will rationalize the Fund’s savings scheme, such that members with higher income will have to save more. However, those who belong to the lower income bracket will not be adversely affected by the adjustment in rates.
Similarly, an increase in one’s contribution would mean a higher short-term loan amount as loans granted under the program are savings-based. Hence, the more a member saves, the bigger MPL he is entitled to borrow. (Pag-IBIG/PIA/EAD)
