PERAA opens P100,000 Expanded Multi-Purpose Loan (E-MPL)
PERAA has beefed up its loan program by opening the Expanded Multi-Purpose Loan (E-MPL) to qualified member-employees. The E-MPL will allow members a personal maximum loan of P100,000 at 12% annual interest rate effective May 1, 2011. On the other hand, the existing Multi-Purpose Loan (MPL) allows members to get a loan of P30,000 (maximum) with interest depending on Phibor rates. Members can avail of only one type of loan, either MPL or E-MPL, at one given time.
In a recent circular to Participating Institutions, Pres. Bernadette Nepomuceno clarified that both the E-MPL and the current MPL are separate loan programs with different interest rates and loanable amounts from the same allocation of P150M per annum. The yearly allocation per qualified institution is sent by PERAA during the months of May and November each year.
The opening of the Expanded Multi-Purpose Loan (E-MPL) was announced at the Annual Meeting last October 21, 2011 in Cebu City, after board approval. It was noted, by the PERAA Board earlier, that “more members have built up bigger personal accumulated value which affords them a bigger borrowing capacity.”
Copies of the implementing rules and sample computations for the E-MPL have been sent to Participating Institutions with the circular.
As of April 30, 2012, Expanded MPL release has reached a total amount of Php 36,957,000 benefiting 491 member employees.