Pag-Ibig Fund Offers 4.5% Subsidized Interest Rates On Socialized Housing

State-owned Pag-Ibig Fund is offering a subsidized 4.5 percent interest rate for socialized housing loan of P400,000, which is ideal for minimum wage earners as this only requires P2,000 monthly amortization and double the maximum allowable loan under its regular housing loan program to P6 million from P3 million.

Atty. Darlene Marie B. Berberabe in a speech before the 33rd National Conference of Employers (NCE) said these two enhanced housing loan programs for accessible housing retail would be effective July 1 this year.

According to Berberabe, the 4.5 percent interest rate being offered by Pag-Ibig cannot be matched by the banking sector because this is subsidized by the government and is available only for its socialized housing program component.

"You cannot get this interest rate from any private bank and this is ideal for minimum wage earners because the monthly amortization is only P2,000," Berberabe said.

A P400,000 socialized housing loan will be charged with 4.5 percent interest rate for a monthly amortization of P2,026.74. A borrower is ex¬pected to have a gross monthly income of only P5,790.69.

A 6.5 percent interest would be charged on P750,000 loan. Borrowers are required a gross monthly gross in¬come of P13,544.31 to be able to pay the monthly amortization of P 4,740.51.

She said Pag-Ibig, the govern¬ment's premier provident institution, is able to subsidize the socialized housing loans through its theoretical income tax savings provided under Republic Act 9679, which exempted the agency from income tax payments.

For the regular housing loan component, Pag-Ibig has doubled the maximum allowable loan to P6 million from the previous P3 million. The in¬terest rate for regular housing loan is implementing a credit-scoring system for borrowers where they can adjust the rate based on the risk unlike before when the rate is pegged at 11.5 percent for a P3 million housing loan.

"This means that the lower the risk, the lower the interest rate," Berberabe said. The private banks are charging a range from 8-9, but Pag-Ibig would be charging lower than this range.

Berberabe has also reminded employers that its penalty condonation program for unregistered and delinquent employers and delinquent housing loan borrowers will expire on June 30 this year. (BCM)


Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Sy moves up, Villar enters Forbes list of billionaires
    Sy moves up, Villar enters Forbes list of billionaires

    Eleven Filipinos are included in Forbes’ 2015 list of richest people in the world. Filipino-Chinese tycoon Henry Sy Sr. continues to be the wealthiest man in the Philippines. The 90-year-old SM supermalls, banking and property tycoon ranked 73rd among the world’s richest with an increased net worth of $14.2 billion from $11.4 billion last year. Sy’s net worth was attributed to the continued growth of his SM Investments Corp. and his more recent venture, the City of Dreams Manila resort and …

  • Jolo apologizes to Bong in visit
    Jolo apologizes to Bong in visit

    Cavite Vice Gov. Jolo Revilla wept and embraced his father as he apologized for the “accidental” shooting incident in their Ayala Alabang residence, the family’s spokesman said yesterday. Lawyer Raymund Fortun came out of the private room at the Asian Hospital and Medical Center in Muntinlupa City to speak to reporters, who were barred from entering the hospital compound during the visit of Sen. Ramon “Bong” Revilla Jr. …

  • US billionaire says WWII Japanese ship found in Philippines
    US billionaire says WWII Japanese ship found in Philippines

    Microsoft co-founder Paul Allen said Wednesday he had found one of Japan's biggest and most famous battleships on a Philippine seabed, some 70 years after American forces sank it during World War II. Excited historians likened the discovery, if verified, to finding the Titanic, as they hailed the American billionaire for his high-tech mission that apparently succeeded after so many failed search attempts by others. Allen posted photos and video online of parts of what he said was the …

  • Australian drug smugglers being taken to Indonesian island for execution - media
    Australian drug smugglers being taken to Indonesian island for execution - media

    By Jane Wardell and Beawiharta SYDNEY/DENPASAR, Indonesia (Reuters) - Two convicted Australian drug smugglers were removed from a prison in Bali on Wednesday to be taken to an Indonesian island where they will be shot by firing squad, Australian media reported. The planned executions of Myuran Sukumaran, 33, and Andrew Chan, 31, have ratcheted up diplomatic tensions amid repeated pleas of mercy for the pair from Australia and thrown a spotlight on Indonesia's increasing use of the death …

  • World's oldest person wonders about secret to longevity too
    World's oldest person wonders about secret to longevity too

    TOKYO (AP) — The world's oldest person says 117 years doesn't seem like such a long time. …

  • Pacquiao big hit so far in Vegas sports books vs Mayweather

    LAS VEGAS (AP) — Manny Pacquiao has always believed he can do what 47 other fighters before him have failed to do — beat Floyd Mayweather Jr. in the ring. …

  • Another source of SAF execution video identified
    Another source of SAF execution video identified

    The National Bureau of Investigation (NBI) is still tracing the source of the video showing one of the wounded police commandos being finished off by Muslim rebels during the encounter in Mamasapano, Maguindanao last Jan. 25. A source from the Department of Justice (DOJ) said they have identified two persons who first uploaded the video that went viral over social networking sites. The supposed source of the video was elusive and claimed that somebody just placed it on an external drive. The …

  • US ambassador slashed in Seoul attack
    US ambassador slashed in Seoul attack

    The US ambassador to South Korea, Mark Lippert, was slashed on his face and arm by a blade-wielding assailant shouting anti-war slogans in an attack in Seoul Thursday, police and reports said. The United States strongly condemned the "act of violence" which left the ambassador bleeding profusely as he was rushed to hospital, and said that President Barack Obama had spoken with him. "The President called (Lippert) to tell him that he and his wife Robyn are in his thoughts and prayers, and to …


Should Aquino be held accountable over the Mamasapano operations?

Poll Choice Options