(UPDATE) MEMBERS of the Home Mutual Development Mutual Fund (HDMF), or Pag-IBIG Fund, can now borrow more and enjoy increased flexibility with its upgraded Multi-Purpose Loan (MPL), its top officials said on Wednesday.

Pag-IBIG said eligibility requirements have also been enhanced.

"Members now qualify after contributing for just 12 months, down from the previous 24-month requirement," said Pag-IBIG Fund Chief Executive Officer Marilene Acosta in a statement emailed to The Manila Times.

This reduction allows newer members to swiftly access funds for their immediate financial needs, she said.

Members can now borrow up to 90 percent of their total Pag-IBIG Regular Savings, or 12.5 percent more than the previous 80 percent. They can take out even larger loans with upgraded Regular Savings as loan entitlement is directly based on their total savings, Acosta said.

"This increase ensures members have greater access to financial resources when needed most," she said.

Moreover, the agency said these enhancements also apply to other Pag-IBIG Short-Term Loan programs, specifically the Health and Education Loan Programs, and the Calamity Loan.

Acosta said even members with existing loans under the previous guidelines may still apply for an additional loan under the enhanced Pag-IBIG MPL, should they require extra funds.

The enhancements become available to members starting May 16, the agency said.

Housing Secretary Jose Rizalino Acuzar said the HDMF has been continually enhancing its loan programs in response to the needs of its members.

"These latest improvements are aligned with President [Ferdinand] Marcos [Jr.'s] directive to deliver affordable and accessible financial services to Filipino workers," Acuzar said.

"By offering bigger loans and reducing the eligibility period, we are making sure that more members can benefit quickly and effectively from the MPL," said the housing czar, who is also the chairman of the 11-member Pag-IBIG Fund board of trustees.

A new one-year repayment term, complementing the existing two- and three-year options, was also introduced under the enhanced MPL, Pag-IBIG said.

This additional term provides greater flexibility, allowing members to tailor their loan repayments according to their individual financial capacity, it added.

Amid the enhancements, the loan remains affordable with a competitive monthly interest rate of only 1.4583 percent.

Additionally, the majority of the interest earned from MPL repayments is returned to members as dividends, further benefiting them, she said.