In an effort to make housing “truly affordable and accessible,” Vice President Noli de Castro, who is the concurrent chairman of the Housing and Urban Development Coordinating Council (HUDCC) and the Pag-IBIG Fund Board of Trustees announced that the Pag-Ibig Fund has further reduced the interest rate for housing loans worth above P300,000 up to P750,000 to seven percent.
‘The latest round in the interest rate reduction is aimed at the middle-income bracket earning an estimated P16,000 to P20,000 per month, and who constitutes 23 percent of the labor work force, according to the National Statistics Office. This is the next logical step to take. Remember that in November 2006, we already addressed the affordability issue of the lower income brackets or the 77 percent of the work force, when we reduced the rate from nine to only six percent per annum for a P300,000 housing loan,” De Castro said.
Under the seven percent rate, the monthly amortization (covering principal and interest only) is now down from P6,860 to P4,990 for housing loan packages of P500,000 to P750,000. Expected to benefit from the drop in interest rates are accountants, college professors, managers, and supervisors.
Meanwhile, the Pag-Ibig Fund in Cebu North will be inspecting the Pag-Ibig clearances of businessmen who will be applying for business permits starting January next year.
Pag-ibig Cebu North information officer Dale Mark Antonio said that the new scheme will be implemented to ensure that business establishments have paid their obligations to the state fund. He added that this will also ensure that the fund’s members have not missed monthly payments and that they will be able to avail of benefits that the fund is offering.
The Pag- Ibig Cebu North office has been ranked second among Pag-Ibig branches in Central Visayas in terms of performance because of the quality service the office gives its clients. The ranking is also based on the office’s overall performance in loans, collection efficiency, asset management and attendance. — Jasmin R. Uy/QSB