Pag-IBIG short-term loan: Eligibility now just 12 months

More borrowers mean more earnings, which translates to higher dividends for members

File photo

CEBU CITY, Philippines — Pag-IBIG Fund members will soon have faster and easier access to short-term loans, following a policy change that shortens the eligibility period for loan applications from 24 months to just 12 months of savings.

This was announced by Marilene Acosta, the chief executive officer of Pag-IBIG Fund, during the agency’s 2024 Stakeholders’ Accomplishment Report (StAR) for Visayas on March 21.

Acosta said that the adjustment will allow more members, particularly low-income earners, to address urgent financial needs through Pag-IBIG’s Multi-Purpose Loan, Calamity Loan, and newly introduced Lung Health Loan.

READ: Pag-IBIG Fund announces record ₱55.65-B dividend in 2024; Regular savings earn 6.6%, MP2 yields 7.1%

Increased loan accessibility, higher targets

By 2025, Acosta said Pag-IBIG projects that 3.62 million members nationwide will avail of short-term loans, with the Visayas region expected to contribute at least 436,000 borrowers, an 11 percent increase from 2024’s 386,000 borrowers.

The estimated total loan disbursement for 2025 is pegged at P98.32 billion, with P12.39 billion coming from Visayas. Acosta, however, urged the agency to push for a more ambitious target of P200 billion nationwide.

“The more short-term loan borrowers there are, the better for our members, as the interest income we earn will be returned in the form of dividends,” she said.

READ: Pag-IBIG to increase member contributions in February 2024

To ensure efficiency in fund disbursement, Acosta also disclosed that Pag-IBIG is enhancing its loan processing system to cut crediting time from the current twice-a-day schedule to an hourly or even five-minute release.

“When a member arrives at the hospital, they need to go through different lab tests, but if they don’t have the money on hand, they should be able to think, “Ah, I can avail of a short-term loan—may Pag-IBIG pa.” But the loan proceeds should be timely,” she added.

Housing loans and the 4PH program

Aside from cash loans, Pag-IBIG is ramping up its efforts to provide affordable housing, targeting 111,648 financed housing units in 2025.

The Visayas region is set to receive 13,427 units, potentially increasing to 20,000 depending on demand. This would mark a 27 percent increase from 2024’s 10,598 units.

Under the Pambansang Pabahay para sa Pilipino (4PH) program, major housing projects in Cebu and Iloilo are expected to be rolled out this year.

READ: Toledo inks 3-way housing program deal with 2 gov’t agencies

Acosta cited a recent agreement with Richwood and the City of Toledo for a 4PH project in Toledo City.

Regarding home financing, Pag-IBIG aims to release P156.86 billion in housing loans by 2025, with P17.83 billion allocated for Visayas.

“We are bringing in more funds to the Visayas. While we expect to collect P14 billion in member savings, we are committing P17.83 billion for housing loans,” Acosta said.

Strengthening member benefits

Acosta emphasized that the agency’s loan offerings primarily benefit low-income workers.

“Our low-income earners need cash loans. If they don’t have money to pay for electricity or to buy cooking gas, they can avail of the short-term loan for their immediate needs,” she explained.

With the planned improvements, Pag-IBIG Fund aims to further its mission of providing accessible financial aid and affordable housing to Filipinos, ensuring that more members can meet both immediate and long-term needs in the coming years. /clorenciana