Responding to the needs under the new normal brought by the coronavirus pandemic, Pag-IBIG Fund has improved its digital platform, allowing members to apply for cash loans online, the Business Mirror reported.
Since June, the enhanced Virtual Pag-IBIG has started to accept online applications for the agency’s multi-purpose loans (MPL) and calamity loans (CL). From the launch, the office has given nod to over P188.6 million worth of applications submitted online. On average, it takes less than two days for the loan requests to be processed.
Introduced late last year, Pag-IBIG fund’s digital platform has served over 2.43 million members, including overseas Filipinos from more than 200 countries. These online visitors were able to get their membership ID (MID) number, open an MP2 savings account, and see the status of their savings and records, without physically visiting a Pag-IBIG Fund office.
Equipped with an online payment platform, Virtual Pag-IBIG enables members to make regular payments using their digital wallets or credit cards.
For members who want to apply online for the MPL or CL, the requirements are as follows: filled-out application form, one valid ID, Loyalty card Plus, and selfie photo holding the cash card and valid ID.
Special Home Loan Rates
Extending further assistance in the new normal, Pag-IBIG Fund has offered promo rates on home loans, as announced in this Facebook post. Members can secure lower rates: 4.985 percent per annum under a one-year repricing period, and 5.375 percent per annum under a three-year repricing period.
These are significantly reduced figures under the Regular Housing Loan program, considering that the agency previously had 5.375 percent per annum for the one-year repricing and 6.375 percent per annum for the three-year repricing period. The special rates will be available until the end of the year.
As for the Affordable Housing Program, the interest rates are still at their lowest with a subsidized home loan interest rate of 3 percent per annum. Low and minimum-wage earners are encouraged to apply for this program.
Aside from assisting members amid the pandemic, officials from Pag-IBIG Fund are hopeful that the special rates will reboot economic activity in the housing sector. As members are able to achieve homeownership, the purchase of the houses will create more jobs, which would have a positive impact on the economy as a whole.
Increase in Home Ownership
Pag-IBIG Fund posted significant growth of loan releases from May to June, as reported in this Facebook post. In May, they recorded P1.2 billion, increasing further to P2.9 billion the following month.
Due to the spread of the virus and observance of lockdowns in the months prior, the office encountered a decline in loan releases, registering P3.8 billion in March and P.88 billion in April, a steep drop from the figures posted in the first two months of the year: P5.5 billion in January and P6.5 billion in February. With the easing of quarantine measures after, the numbers improved.
From January to June, the office has released over P20.80 billion, funding the purchase of 20,631 homes. A huge portion of the loan releases, about 91 percent or P18.94 billion, were loans for socialized and low-cost homes.
With the offering of special rates for borrowers, as well as the availability of online services, Pag-IBIG is confident that the numbers will continue climbing and sustain recovery for the rest of the year.
Earnings Amid the Pandemic
Recently, Pag-IBIG Fund cited earning P22.82 billion for the first half of the year, according to Manila Bulletin. The gross income was primarily contributed by housing loans and short-term loans, as well as trading gains from investment endeavors.
Considering the pandemic’s economic impact, Secretary Eduardo del Rosario of the Department of Human Settlements and Urban Development (DHSUD) and Chairman of the Pag-IBIG Fund Board of Trustees said that the agency’s performance for the first half of the year remains decent and that recovery is within reach with the easing or lifting of quarantine measures.
Last year, Pag-IBIG recorded P24.59 billion in gross income and P16.04 billion in net income from January to June. The office ended 2019 with P56.90 billion and P34.37 billion in gross and net, respectively, making it their best year.
Despite the decline in figures this 2020, the office remains positive about their performance, remaining to be at a strong financial position amid the crisis.
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Article and Photo originally posted by Lamudi last August 20, 2020.
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