Pag-Ibig cuts interest rate for calamity loans

PAG-IBIG Fund has reduced the interest rate of its calamity loans to help families affected by typhoons and other disasters, said Vice President and Pag-Ibig Board chair Jejomar Binay.

“Pag-Ibig’s calamity loan now carries a yearly interest rate of 5.95 percent, compared to the previous 10.75 percent,” Binay said.

“We intend to help ease the burdens of our kababayans (countrymen) living in typhoon-prone areas and those hit by other natural calamities,” he added.

The housing czar said that Pag-Ibig aimed to offer the lowest interest rate of calamity loans in the market without compromising the sustainability of Pag-Ibig. Members may borrow an equivalent of 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 chief executive officer Darlene Berberabe said.