Name: Jessa Mae B.

Ursabia
Subject: Social Studies 2
Instructor: Mr. Russell Donn C. Isnain
Date of Submission: September 5, 2022
1st sem/1st term:10:45 am – 12:00 pm

Learning Exercise No.2

Study the following situation and answer the questions that follow.
Research Situation:
Housing loans are granted to PAG-IBIG members at very low interest rates to help
them build and own their own homes. The loan is expected to be paid on a monthly basis
within a certain period of time. Despite the liberal repayment scheme, repayment rate has
been consistently low. Records show a delinquency rate about 30%. Arrears average at Php
80,000 and many properties have been foreclosed as documented by notices of foreclosure.
PAG-IBIG members’ failure to pay their obligations has been attributed to many factors, like
lack of awareness among borrowers of the consequences of non-payment, a negative
attitude towards government loans, or shortage of cash because of other financial need and
others. Two local studies on loan payment behaviors of credit cooperative members
showed that social and economic factors influence repayment. The studies, however, did
not touch on knowledge and attitudes towards loan repayment. Most of the studies
reviewed deal with credit coop loans and crop loans. Studies on housing loans are limited.

1. What can be the possible research question?

Why do PAG-IBIG members fail to pay their obligations?
What factors Contribute to repayment rate?
2. What is the problem situation? Show evidences.
Despite the liberal repayment scheme, repayment rate has been consistently low.
Records show a Arrears average Foreclosed as delinquency rate about 30%. At Php
40,000 and many properties have been documented by notices of foreclosure.
3. What should be the situation?
PAG-IBIG members are expected to paid their loan on a monthly basis within a
certain period of time because it is granted at a very low interest rates to help them
build and their own homes. PAG- IBIG members should pay their obligations.
4. What are the possible reasons for the discrepancy between what is and what should
be?
There are many possible reasons why PAG-IBIG members fail to pay their
obligations. Among the possible reasons: lack of awareness among borrowers of the
consequences of non-payment, a negative attitude towards government loans, or
shortage of cash because of other financial needs and others.

5. What question remain unanswered?

What is the knowledge of PAG-IBIG members about loan repayment?
How is the attitudes of PAG-IBIG members towards loan repayment?