PAG-IBIG Fund is considering raising the decades-old P100 monthly savings in 2021 to answer the increasing demand for its low-interest housing and calamity loans.
Top executives of the agency, however, explained that they will hold consultations first, and vowed to improve members’ benefits if the savings hike proceeds.
Secretary Eduardo del Rosario, chairman of the Housing and Urban Development Coordinating Council and Pag-ibig Fund board of trustees, said the Fund achieved another banner year in 2018 as the agency earned P33.17 billion in net income.
The increase in the demand for loans, however, 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 recent years, as it averaged 19.8 percent growth since 2016. So we’re exploring all sources of additional funding,” said del Rosario. “We might have to increase the P100 monthly savings to continue providing the low interest rates.”
Pag-ibig Fund Chief Executive Officer Acmad Rizaldy Moti explained 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.
“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.
“If the increase is needed, this will be implemented in 2021 at the earliest,” he stressed. (PR)