Pag-IBIG Lowers Calamity Loan Interest

31 July 2012

The Home Development Mutual Fund (HDMF or Pag-IBIG) has reduced the yearly interest rate of its calamity loan to 5.95 percent from the previous 10.75 percent to help families affected by typhoons and other natural disasters.

Vice President Jejomar C. Binay, concurrent Pag-IBIG Board chairman, said that Pag-IBIG aims to offer the lowest interest rate of calamity loans in the market without compromising the sustainability of the Fund.

"We intend to help ease the burdens of our kababayans living in typhoon-prone areas and those hit by other natural calamities," Binay said in a statement.

Pag-IBIG members may borrow the equivalent of 80 percent of their total savings, according to the housing czar.

Pag-IBIG had also earlier offered a 3-month moratorium on housing loan payments to affected members.

Members may also apply for insurance through Pag-IBIG, where they could get the value of the extent of damage.

Member Overseas Filipino Workers who are working in strife-stricken areas abroad, meanwhile, can avail themselves of Pag-IBIG's Special Assistance Program.

Pag-IBIG president and CEO Darlene Berberabe said that under the program, members may withdraw their total savings without having to wait for 20 years for their membership to mature.

They may also avail of a 6-month moratorium on their housing and short-term loan payments.

"These are the Fund's way of showing continuing concern for its local and overseas members, and its way of helping out its members during their times of need," Berberabe said.