Pag-IBIG slashes interest rate for calamity loans

Posted at 07/31/12 3:52 PM

MANILA, Philippines - The Home Development Mutual Fund (Pag-IBIG Fund) has cut interest rates for its calamity loans, as a way to assist families affected by typhoons and other disasters.

Vice President and Pag-IBIG Board chairman Jejomar C. Binay said the annual interest rate for calamity loan has been reduced to 5.95% from the previous 10.75%.

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

Members can borrow the equivalent of 80% of their total savings.

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

Also, Pag-IBIG members, who are working in strife-stricken areas abroad, can also avail of its Special Assistance Program.

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," Darlene Berberabe, Pag-IBIG president and CEO said.