May 20, 2019 - Monday
Weather icon
30.85 ℃, Scattered clouds
Davao City, Philippines

Pag-IBIG eyes increase in monthly contributions

April 05, 2019 - Friday 6:04 PM by Lovely Carillo

INCREASED CONTRIBUTIONS. Pag-IBIG Fund seeks to increase the monthly contribution of its members from P100 to P200 by 2021. Pag-IBIG Chief Executive Officer Acmad Rizaldy Moti said the monthly savings remained unchanged since 1986 despite the inflation over a span of 32 years. Photo taken during a previous press conference held in the city. LOVELY CARILLO

DAVAO CITY -- Pag-IBIG members may soon have to shell out more than the current P100 monthly contribution to the Fund to meet the rising demand for low-interest housing and calamity loans.

Pag-IBIG Fund is the single largest source of housing loans in the country, with up to P75.31 billion in housing loans released in 2018 alone.

“We offer the lowest housing loan and calamity loan interest rates. We might have to increase the P100 monthly savings in order to continue providing the low interest rates,” Secretary Eduardo D. del Rosario, Chairman of the Housing and Urban Development Coordinating Council (HUDCC) and Pag-IBIG Fund Board of Trustees, said during the recently-held Pag-IBIG Fund Chairman’s Report.

However, this will only be implemented in 2021 after the conduct of a consultation among its members.

Del Rosario said the Fund will not immediately implement the increase considering President Rodrigo Duterte’s standing orders to consider the plight of the Filipino workers.

“If we have to increase, the increase will happen in two, maybe three years, from now because we have to consult our stakeholders first,” he said.

Del Rosario said the agency recorded a net income of P33.17 billion last year. However, he said, the increase in the demand for loans may soon outpace the growth in collections derived mostly from the mandatory P100 monthly savings of its members.

“The demand for housing loans alone has seen consistent double digit growth over the recent years as it averaged 19.8 percent growth since 2016. So we’re exploring all sources of additional funding,” he said.

In a press release, Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy Moti said that the monthly savings remained unchanged since 1986, which means that P100 monthly contribution from each Filipino worker has never been adjusted despite the inflation over a span of 32 years.

The availment of housing loans, on the other hand, has been growing at a faster pace. He said that they expect the upward trend to continue in the next few years and project the demand to increase by 10 percent every year. If the growth exceeds their projection, only then will they consider raising the monthly savings.

“In order to sustain our low housing loan and calamity loan interest rates, we may have to raise the monthly contributions to P200. We can also borrow money from other institutions to raise more funds, but doing this will affect our low interest rates,” Moti said.

"We reiterate that if the increase is needed, this will be implemented in 2021 at the earliest. But as early as now we want to assure our members that the benefits will definitely improve if the monthly savings is raised from the current levels,” he said.

Moti said members will not only enjoy bigger savings after maturity, but they will also get bigger cash loans as a result of the bigger savings.


 

Advertisement
Advertisement