Pag-IBIG Fund or Home Development Mutual Fund - Most Valuable Government Response

Gold Stevie Award Winner 2019, Click to Enter The 2022 Asia Pacific Stevie® Awards

Name of Organization / Company: Pag-IBIG Fund or Home Development Mutual Fund
Category: Most Valuable Government Response

Entry Title: Alagang Pag-IBIG: Helping the Nation Recover from COVID-19

Since the 1980s, Pag-IBIG Fund has provided its members – the Filipino workers - with high-yield savings and affordable loans. Today, Pag-IBIG is the single largest source of home financing and cash loans, with disbursements reaching record-highs of P86.7 billion and P53.8 billion, respectively, in 2019.

But when COVID-19 affected the members’ livelihood and slowed down the Philippine economy in 2020, Pag-IBIG sought to do more to help ease the burden felt by all its stakeholder amid the pandemic. That’s why Pag-IBIG launched the “Alagang Pag-IBIG” campaign, its inclusive plan to answer the needs of its members, partner land developers, and employees.

Coming from successive double-digit year-on-year growth, Pag-IBIG, without risking its financial capabilities, was able to help stakeholders recover through these initiatives:

1. Easier application for cash loans by switching to ONLINE filing via its online service portal, Virtual Pag-IBIG; 139,557 loan applications received online; over PHP 1.10 BILLION in loans released.
2. Initiating Pag-IBIG 3-Month Payment Moratorium Program and automatic grant of total of 90-day GRACE PERIOD on all loan payments (in support of Philippine laws, RA 11469 and RA 11494). Nealy 5 million borrowers aided.
3. Approval of the P10 billion-House Construction Financing Line Program to help partner-developers cope with economic challenges and continue building affordable homes for Pag-IBIG members. On a larger perspective, this provided a stimulus for the Philippine housing industry and the country’s overall economy.
4. Offering the lowest ever interest rates for Pag-IBIG Fund’s regular housing loan program by as much as 100 basis points. This provided members better opportunity to own a home, while also helping drive demand in the housing industry to help the Philippine economy recover.
5. Offering of the Special Housing Loan Restructuring Program (SHLRP) to further assist members who are struggling with their housing loan payments.
6. Internal COVID-19 communication programs to ensure the safety and welfare of Pag-IBIG employees.

With all these interventions, Pag-IBIG Fund continues to help alleviate the financial concerns of its members and stakeholders while keeping its business stable. All these, in fulfilling its mandates and in helping the nation rise from the COVID-19 pandemic.