Pag-IBIG Fund has launched its first project in Palawan under its Barkada Franchise Financing (BFF) loan program, encouraging members to pool their loan proceeds and start a business.
The pilot project involves a coffee vending machine in Barangay Sicsican, Puerto Princesa City, with members joining forces to establish the venture.
Jacqueline Constantino, vice president for Member Services Operations of Pag-IBIG’s Luzon Group, said the program allows members to earn from both their savings with the fund and the businesses they establish using the loan.
“Kapag kayo ay mangutang under BFF, ang inutang niyo gagawin niyong business, kikita naman ang inutang niyo. Both are earning. Kumikita ang pera niyo kay Pag-IBIG Fund, kumikita rin ang pera niyo sa business niyo,” she said.
Under the program, at least three Pag-IBIG members can form a group and combine their loan proceeds to finance a business. The fund also guides members during the initial stages of setting up their ventures and connects them with franchisers that may offer discounts.
Mariza Santingyaman, area manager for Southern Tagalog, said the program welcomes business ideas regardless of their scale.
“Through Pag-IBIG ay pwede kayo magsimula ng negosyo, kahit maliit lang. Lahat naman nagsisimula sa maliit,” she said.
Ronald Bryan Basalio, one of the project partners, said borrowing can be beneficial when the funds are used responsibly, particularly by young people learning to manage their finances.
“Kung iisipin natin, paano naman ang monthly amortization namin. Kaya sa business ilalaan para don kukunin ang pang-monthly amortization. Ang interest naman ay bumabalik sa pamamagitan ng dividends. Halos walang nawawala sa atin,” he added.
Basalio said business earnings would help cover the group’s monthly loan amortization, while members could also benefit from dividends earned through their Pag-IBIG savings.
