MANILA -- State-run housing fund Pag-IBIG said Tuesday it was considering an increase in member contributions, the first in 3 decades to meet rising demand for loans.
Since 1986, Pag-IBIG members and their employers have each been contributing P100 monthly. Borrowers are drawn to Pag-IBIG due to relatively lower interest rates compared to commercial loans.
Informal consultations with stakeholders will be held and should the increase push through, it could take effect in 2021, said Pag-IBIG president and CEO Acmad Moti.
"It's just that the growth in lending, na-outpace yung growth or increase sa contribution ng members," Moti said.
(It's just that the growth in lending has outpaced the growth or increase in the contribution of members.)
If Pag-IBIG borrows to cover for loan demand, it will have to charge higher interest, he said.
"Kung gusto nating manatiling affordable ang ating rates, kailangan nating pag-isipan kung saan pwedeng manggaling yung pera," he said.
(If we want interest rates to remain affordable, we need to study carefully where we will source money.)
Had the increase in the number of borrowers not exceeded 10 percent, Pag-IBIG could have afforded to keep contributions steady, Moti said. But loan demand has been growing 17.5 percent in the last few years and 15 percent in the last 2 years, he said.
Employers Confederation of the Philippines President Sergio Ortiz-Luis said the Pag-IBIG hike should not take effect this year, the same year as the increase in SSS member contributions.