The Home Development Mutual Fund (Pag-IBIG Fund) announced Tuesday that it released a total of P14 billion in short-term loans from January to May this year providing financial assistance to more than 720,000 members.

Of the total figure, multi-purpose loans (MPL) accounted for 87 percent with P12.4 billion released to 628,184 members while the remainder was accounted for by calamity loans which benefited more than 90,000 members.

The Fund also posted an 80 percent increase from the P6.9 billion disbursed for MPL for the first quarter of the year.

Jaime Fabiaña, chief executive officer, said “every time the school year draws near, we always observe this surge in MPL applications since our members use it to pay for tuition fees.”

Other than payment of tuition fees, the MPL can also be used for paying hospital bills, appliance purchases, minor home repairs, and even for small business.

Under the program, “an eligible borrower should have at least twenty-four monthly contributions and is an active member at the time of loan application, with at least five monthly contributions for the last six months. Members can borrow up to 80 percent of their total savings,” Fabiaña explained.

Meanwhile, Fabiana reiterated that with the signing of the Home Development Mutual Fund Law of 2009 (Republic Act No. 9679), membership to the workers’ provident system has been expanded to other income-earning groups effective January this year.

“Pag-IBIG membership is now open to all Filipino workers, be they in the formal or informal sector, within the Philippine shores or beyond.”

Under the universal membership coverage, the following are mandatorily covered by the Fund: All employees who are compulsorily covered by the SSS; all employees who are subject to mandatory coverage by the GSIS; uniformed members of the Armed Forces of the Philippines, the Bureau of Fire Protection, the Bureau of Jail Management and Penology, and the Philippine National Police, Overseas Filipino Workers, and Filipinos employed by foreign-based employers, whether deployed in the country or abroad.