Pag-IBig Fund lowers calamity loan interest

CEBU, Philippines - To help victims of calamities, the Home Development Mutual Fund (HDMF), better known as Pag-IBIG Fund has reduced the interest rate of its calamity loans.

Vice President and Pag-IBIG Fund chaiman of the board Jejomar C. Binay said that calamity loan now has an annual interest rate of 5.95 percent from 10.75 percent.

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

He added that Pag-IBIF aims to offer the lowest interest rate of calamity loans in the market without compromising the sustainability of the fund.

Members may borrow up to 80 percent of their total savings.

Pag-IBIG also offered a three-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.

Meanwhile, the fund also encouraged members working in strife-stricken areas abroad to 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 six-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,” Pag-IBIG president and CEO Darlene Berberabe said in a statement.

The local Pag-IBIG members welcome the development.

“That’s great news, especially that the country is experiencing natural disasters. It will surely help the Filipino people rebuild what they lost due to typhoons or other calamities. This development only proves that the government is giving attention to the needs of the people,” said Timmy Rose Mahidlawon, guest services associate at Costabella Tropical Beach Hotel.

“This is a welcome development because it is like paying an interest rate of less than 0.5 percent monthly and for me, Pag-ibig is now offering better services than SSS and GSIS,” said Abe Hernando, a public school teacher in Sudlon Elementary School, in Cebuano.

“The almost 6% decrease is okay if you will pay the whole amount within the month. But this percentage is still too high for those who are greatly affected by disasters. As far as I know, the longer the terms of payment will be, you also get higher rates in interest,” said Lei Allen Lim, net café owner and home-based ESL teacher.

“This is great news for everyone, most especially those who were affected by disasters. It will help them a lot na maka-recover sa ilang mga loss due to typhoons and other disasters,” said Lorabe Miguel-Tallo, executive assistant at Carmen Copper Corporation.

 “This is a great development though, because it will really help the victims of disasters. But it would be better if the interest will be lower. But kung diha ra gyud kutob ilang rate reduction, arang-arang na lang,” said Ruby Ann Enricoso, an online ESL teacher. — (FREEMAN)