Pag-IBIG's dividend rate for MP2 savings rises to 7.05%

Pag-IBIG Fund's dividend rate for its regular and modified savings programs slightly went up in 2023, according to a report by ABS-CBN.

Pag-IBIG chief executive officer Marlene Acosta said the dividend rate for regular savings is 6.55 percent, and 7.05 percent for the modified Pag-IBIG or MP2 savings program for 2023.

The dividend rate is slightly higher than the 2022 figures.

Acosta said the Pag-IBIG Fund can actually aim for higher dividend rates but this will push up the interest rate on its housing program, which is not the goal of the agency.

For 2023, Acosta said Pag-IBIG was able to achieve its highest-ever net income of P49.79 billion, 97.86 percent of which will go to members' dividends.

A rough computation for MP2 savers would translate the 7.05 percent dividend to P705 interest for a P10,000 savings for example.

This year, as the fund increases monthly contribution, the savings of members will also rise, estimated to add P35 billion to the fund's coffers.

This means, that members' loanable amount for short term loans will also increase as their savings rise.

Acosta also said 2 new programs will be launched this April: the quick loan facility of P5,000 and P10,000 for members, and the health and education loan program.

The latter will help members defray the costs of their hospitalization or educational needs.