The Home Development Mutual Fund (HDMF) or Pag-IBIG has announced a new savings rate that will generate an estimated P38 billion exclusively for the government’s Pambansang Pabahay Para sa Pilipino (4PH) program. This initiative aims to provide more affordable housing options for Filipinos. The new rate, set to be implemented next month, will enable the HDMF to approve more housing loans with affordable interest rates.
Hilario Aguilar, Pag-IBIG’s Deputy Chief Executive Officer for Member Services Cluster, shared this news during a recent TV news forum. Aguilar explained that the P38 billion will be utilized by the Department of Human Settlements and Urban Development (DHSUD) to construct low-cost condominium units and high-rise housing facilities under the 4PH program.
“We anticipate a significant increase in the number of Pag-IBIG members availing housing loans once these structures are built,” Aguilar stated. This development will provide more opportunities for individuals to fulfill their dream of owning a home.
In addition to the new savings rate, Pag-IBIG will also introduce the Quick Loan program, which allows members to access short-term loans using their mobile phones. Members can claim loans of P5,000, P10,000, and P15,000 through their loyalty or cash cards or G-cash. While these loan amounts may seem small, they can be invaluable for addressing emergency needs.
Moreover, Pag-IBIG will launch the Health and Education Loan program, enabling members to use their savings for either their children’s tuition fees or emergency medical expenses. This initiative aims to provide financial support for education and healthcare needs, ensuring the overall well-being of Pag-IBIG members and their families.
With the implementation of the new rates, all member benefits, including cash loans and maturity benefits, will double. For instance, under the previous rates, a member would receive approximately P87,000 upon reaching membership maturity. However, a member who saves under the new rates over a period of 20 years would receive P174,000, effectively doubling their savings.
Marilene Acosta, the Chief Executive Officer of Pag-IBIG Fund, highlighted that the higher savings of members will also entitle them to higher multipurpose and calamity loan amounts. This will provide additional financial assistance during times of need.
To facilitate these changes, the monthly savings of both employees and employers will increase to P200 each from the current P100. This adjustment is in line with the increase in the maximum monthly compensation used to compute the required 2 percent employee savings and 2 percent employer share for Pag-IBIG Fund members. The maximum monthly compensation will now be P10,000, up from the previous P5,000.
It is worth noting that the implementation of these changes was delayed last year upon the request of the ECOP (Employers Confederation of the Philippines). The aim was to provide the business community with more time to recover from the losses incurred during the pandemic.
In conclusion, the new savings rate for Pag-IBIG members is a significant step towards expanding affordable housing opportunities in the Philippines. With increased savings, members can access higher loan amounts and enjoy doubled benefits. These developments, coupled with the introduction of the Quick Loan and Health and Education Loan programs, demonstrate Pag-IBIG’s commitment to supporting its members’ financial needs and overall well-being.
Source: The Manila Times
