Pag-Ibig home financing loan increased to P3 million

CEBU, Philippines – Pag-IBIG Fund has increased the loan for the Pag-IBIG Fund End-User Home Financing Program from P2 million to P3 million effective last April 1, 2009.

Alex Patiño, Chief of Housing Loans Division, Pag-IBIG Fund Mandaue Branch said that the affordability leave increases but the interest rate decreases with this new housing loan guidelines.

Meanwhile the Special Short-term Loan Program for displaced workers was also introduced.

The Special short-term Loan Program aims to provide financial assistance to HDMF members who have been displaced from work due to closure of company or layoff/retrenchment for locally employed members, as well as pre-termination of a member’s employment contract.

Eligible borrowers should be a member that has been displace from work beginning October last year.

In the case of OFWs, those who are repatriated to the Philippines due to termination of employment contract resulting from retrenchment, closure of company are still eligible.

The member must have also made at least twenty-four monthly contributions.

The loan term shall have a term of three years, inclusive of a one-year grace period on principal payments and shall have an interest rate of 10.75% per annum, compounded monthly.

Interest shall be charged during the grace period, which shall be capitalized and amortized over the repayment period. – Johanna T. Natavio/BRP (THE FREEMAN)