THE Home Mutual Development Fund (Pag-IBIG) Visayas posted a total loan value takeout of P4.29 billion during the first half of 2017, up by 53 percent versus last year’s P2.81 billion, reflecting the continued economic boom in the region.
This benefited 4,246 members in the three regions of the Visayas.
A 17-percent growth in loan value takeout was recorded from January to June, amounting to P28.83 billion from P24.74 billion during the same period in 2016.
As of June, Pag-IBIG Fund’s collection efficiency reached 90.2 percent corporate-wide, and 87.44 percent in Visayas. Its non-performing loans ratio went down to a single-digit level of 9.8 percent for the whole agency and 12.56 percent in Visayas.
Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy Moti said the agency has been performing well.
“2016 was a best year for Pag-IBIG and we believe this year will be even better,” said Moti.
He noted that reforms undertaken by the agency, efficient collection, low interest rates and other sustainability efforts have helped the agency attain new highs.
Pag-IBIG Fund has decentralized its services to reach out to more member borrowers. From 28 branches, it grew to 123 branches, making Pag-IBIG services accessible even to those living in far areas.
The agency also lowered the housing loan interest rates of borrowers earning P12,000 and up to 5.5 percent per annum while those earning P12,000 and below are eligible to avail of the three percent housing interest rate per annum for a loan not exceeding P450,000.
The robust growth in Pag-IBIG Fund Visayas, on the other hand, was fueled by the vibrant economic activities in key cities like Cebu and Iloilo, according to lawyer Marie Antonette Diaz, vice president of Pag-IBIG Fund Visayas home lending operations.
Pag-IBIG Fund maintains two hubs in the Visayas, which are in Cebu and Bacolod.
“We have really seen a huge leap in the accomplishment of both hubs. There is an economic boom in Cebu, we have also seen (the same) in Iloilo City, particularly.
With all the reforms implemented by the agency, it is easier now for Pag-IBIG Fund members to borrow and our rates are already competitive with the banks,” said Diaz.
Pag-IBIG Fund Cebu hub, according to Diaz, was given a target P3 billion loan takeout for the year. As of August, the Cebu hub has already met and exceeded its target and released P3.7 billion. The Bacolod hub, on the other hand, has also met and surpassed its loan takeout of P2 billion to P2.2 billion.
Moti said the Visayas’ target for 2017 is to lend P7.6 billion but with fast loan takeout, it is projecting to hit P9 billion to as high as P10 billion by the end of the year.
Pag-IBIG Fund delivered an unprecedented P57.3 billion in housing loan takeouts in 2016 – the highest in the history of Pag-IBIG Fund – surpassing its target last year by 13 percent or P6.8 billion. The amount assisted almost 77,000 Pag-IBIG Fund members in the acquisition or construction of their new homes.
By the end of the year, Moti said the agency might end with another high growth.
“We are targeting to hit P68 billion of loan takeouts by the end of the year,” he said, adding that the target is doable, provided there is a speedy release of land titles.
Published in the SunStar Cebu newspaper on October 07, 2017.
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