Pag-IBIG loan availment rises to 80% of savings.
The Pag-IBIG Fund has increased the computation of loan availment of the multi purpose loan (MPL) from the member’s accumulated savings to 80 percent.
Pag-IBIG Fund Mindanao vice president Jose W. Banzon, Jr. told the Davao media that this is one innovation that the Fund has given to members as an incentive for those with contributions that had reached five years and above.
“What is good with the new scheme is that the loan can be renewed in six months unlike the previous where a borrower has to wait for the maturity period of 12 months before the loan can be renewed,” he said.
MPL is among the saleable program that the members avail of because it can be accessed easily with processing for renewal only in three days while first timer can have it within 24 hours.
In Mindanao, he said, the Fund was able to loan out in 2005 some P4 billion this year and 35 percent of the 772,000 Pag-IBIG Fund members spread out all over the island availed of the loan window.
MPL is a short-term loan where proceeds could be used by the borrower for purposes either as capital for income generating project, educational purposes or for health concerns and others.
No survey as yet has been conducted to where the proceeds of MPL were applied by the borrowers but through word of mouth some Pag-IBIG Fund borrowers of the short-term loan used the proceeds for livelihood purposes.