The Home Mutual Development Fund (HMDF) or Pag-Ibig is considering increasing members’ contributions as part of efforts to meet the increasing number of loan applications.
Members and employes have been contributing at least P100 per month. The HMDF, since 1985, has been collecting from members since 1986.
There are more members who are applying for loans because of the low interest rates.
Pag-IBIG president and CEO Acmad Moti said that consultations will be conducted and if an increase will be approved, implementation should start on 2021.
“It’s just that the growth in lending, na-outpace yung growth or increase sa contribution ng members (It’s just that the growth in lending has outpaced the growth or increase in the contribution of members.),” Moti said.
He added that if Pag-IBIG borrows to cover for loan demand, it will have to charge higher interest.
“Kung gusto nating manatiling affordable ang ating rates, kailangan nating pag-isipan kung saan pwedeng manggaling yung pera (If we want interest rates to remain affordable, we need to study carefully where we will source money.),” he said.
Moti said the proposed increase in contribution stemmed from the increase in the number of borrowers that reached more than 10 percent.
The loan demand, he added, has been growing by 17.5 percent and up to 15 percent in the last two years, he said.
