Pag-IBIG released P77.3-B in home loans from Jan.-Aug.

A total of P77.3 billion in home loans has been disbursed from January to August of this year, the Home Development Mutual Fund or Pag-IBIG Fund said on Tuesday.

“Actually, this is the highest loan disbursed for the period January to August 2024. So this is a record breaking feat for Pag-IBIG Fund,” said Karin-Lei Garcia, Pag-IBIG Fund Vice President for Public Relations and Information Services Group, in an interview with Bagong Pilipinas Ngayon.

This is P383 million higher than the P76.94-B released in the same period last year, Pag-IBIG Fund added.

Pag-IBIG said that more members are availing home loans due to low interest rates.

“In fact po, ang Pag-IBIG Fund po ay nagko-control ng 40% of the real estate mortgage market in the Philippines. Ibig sabihin, kami sa Pag-IBIG Fund, ay may responsibilidad to keep the home loan interest rates low. Kasi kapag taasan namin ang interest rates, ang buong morgado po ay tataas din. So that’s one reason po kung bakit tumataas ang availment,” said Garcia.

(In fact, the Pag-IBIG Fund controls 40% of the real estate mortgage market in the Philippines. This means the Pag-IBIG Fund has the responsibility to keep the home loan interest rates low. Because if we increase the interest rates, the mortgage will also increase. So that’s one reason why more members are availing.)

Pag-IBIG Fund said that its housing loan terms are up to 30 years, which is higher than the 20 years being offered by other financial institutions.

It added that it is very lenient to borrowers who cannot pay on time and given up to a year to pay the loan.

But Pag-IBIG Fund said that its collection rate for home loans is at 93%, which means 9 out of 10 members are paying on time. — Vince Angelo Ferreras/RSJ, GMA Integrated News