Pag-IBIG Fund slashes loan eligibility period to 12 months

National

MEMBERS of Pag-IBIG Fund will soon gain faster access to financial assistance as the agency has announced a significant change to its short-term loan programs, cutting the required eligibility period in half.

Marilene Acosta, the chief executive officer of Pag-IBIG Fund, announced during the Pag-IBIG Fund Stakeholders’ Accomplishment Report (StAR) Visayas 2024, on Friday, March 21, that the Board of Trustees has approved reducing the required savings period from 24 months to just 12 months for members applying for the Multi-Purpose Loan (MPL), Calamity Loan, and the newly introduced Lung Health Loan.

“I am happy to announce that instead of requiring 24 monthly savings to qualify for our short-term loans, our members may soon access any of our short-term loans after just 12 months of savings, making our cash loan program accessible to even more members,” Acosta said.

She noted that this move is expected to increase the number of short-term loan borrowers in 2025, with Pag-IBIG Fund projecting 3.62 million borrowers nationwide, out of the 18.36 million short-term loan beneficiaries.

In the Visayas alone, the agency aims to assist over 436,000 members next year, an 11 percent increase from the 386,000 borrowers recorded in 2024.

Acosta is confident that the Visayas will meet or even surpass its targets. She explained that having more short-term loan borrowers benefits members since the interest income earned is returned to them as dividends.

“We want that because 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.

The financial support available through Pag-IBIG’s loan programs is also set to increase significantly. Nationwide, the agency is targeting P98.32 billion in loan disbursements for 2025, with the Visayas expected to account for P12.39 billion.

This marks a 35 percent jump from the P9.21 billion released last year. Acosta noted that if borrowing demand surges, she would not be surprised if the total loan amount in the Visayas reaches P20 billion.

She further revealed that the agency is working to enhance its loan disbursement system, particularly through its online and mobile application platforms, to ensure timely and efficient crediting of loan proceeds.

“For example, if a member applies for a loan online while at the airport in Manila and is about to go to Boracay, the loan proceeds should not be credited because that would be his budget for his travel,” Acosta stated.

“But if, for example, a family member gets sick and needs to go to the hospital, the short-term loan should be available to cover medical costs immediately," she added.

Currently, Pag-IBIG Fund credits loan proceeds twice daily in two batches. Acosta said they are working with partner banks to speed up the process, initially aiming for hourly disbursements and eventually reducing the waiting time to just five minutes.

The Pag-IBIG MPL is a financial assistance program allowing eligible members to borrow up to 80 percent of their total Pag-IBIG savings.

The loan can be used for various needs, including medical expenses, home improvement, business capital, education costs, and utility bills.

Under the new policy, Pag-IBIG members can now qualify for short-term loans after just 12 months of total contributions, a reduction from the previous 24-month requirement.

Applicants must have made at least one membership savings payment in the last six months and provide proof of income. Additionally, members with existing Pag-IBIG loans must ensure their accounts are not in default to be eligible.

For employed individuals, loan applications should be processed through their employers, while self-employed members can apply directly at Pag-IBIG branches.

With these eased eligibility requirements and improvements in loan processing speed, Pag-IBIG aims to offer greater financial security and faster assistance to its members in times of need.(TGP)