CEBU — At least 127 people were rescued after a fire hit the ferry they were in early Sunday morning.

Authorities said 65 passengers and 62 crew members of Kho Shipping Lines' MV Esperanza were safely transported from the ill-fated ferry through rescue boats, with some of them swimming ashore.

The vessel came from Iligan City and made a short stop in Lazi, Siquijor before heading to Tagbilaran City, Bohol, its final destination.

It caught fire near Doljo Point off popular tourist destination Panglao Island, Bohol's disaster head Anthony Damalerio said.

While authorities have yet to determine the cause of the fire, Damalerio said it may have started in the engine room.

"It did not engulf the whole vessel, only its [stern],” he added.

Some passengers were quick to notice the fire and immediately transferred to rescue boats.

"Some important documents were left on the vessel,” passenger Joel Zambas shared.

The rescued passengers and crew were brought to Tagbilaran City to undergo medical assessments. They were also provided with food and water.

The Philippine Coast Guard, Bureau of Fire Protection, and the Maritime Industry Authority are set to launch an official investigation into the fire.

—Report from Annie Perez