July 13, 2024

Members of mutual fund Pag-Ibig in the Cordillera are encouraged to avail of the loan services offered by the government corporation.

Pag-Ibig officials said only a few members in the Cordillera are availing of their multipurpose loan program.

Korina Joyce Calaguin, head of Pag-Ibig Baguio, said they have P500 million allotted for multipurpose loan this year. As of June, about 55 percent of the amount has been availed of.

She encouraged members to help in the growth of the fund by availing loans as the interest deducted from the proceeds are given back in the form of dividends for all Pag-Ibig members. Pag-Ibig Baguio currently has 110,000 members.

Pag-Ibig multipurpose loans come with an interest rate of 10.5 percent per annum, which is translated to 0.48 centavos deducted for every P1,000 loan.

Members can avail of 80 percent of their total contributions payable in two years, but Calaguin said members can avail of an amount lesser than their contribution and have the option to pay earlier if they wish to, paying only the interest based on the loan duration.

Lilia Anguluan, vice president of Member Services Operations-Luzon Group, said members also have the option to avail of the multipurpose loan and invest in the mutual fund’s Modified Pag-Ibig 2 (MP2) savings program, which earns a higher dividend rate than the mandatory savings contribution of each member.

She said aside from active members, retirees can enroll in the MP2 savings program, which currently offers a dividend rate of 7.03 percent for this year. The program has a lock-in period of five years, where members have the option to withdraw their dividends annually or wait after five years in the form of compounded dividends.

Anguluan added a member enrolled in the MP2 can terminate the time deposit earlier.

Pag-Ibig sets aside 70 percent of its annual net income and gives it to members in the form of dividends, which means the more a member saves, the higher the dividends they can earn. – Jane B. Cadalig