The Home Development Mutual Fund (HOME) more popularly known as Pag-IBIG Fund had extended a total of P199.19 million loans in Bicol in 2002.
Marietta B. Britanico, Pag-IBIG Fund Bicol regional manager, said of the P199.19 million loans some P123.002 million was released by the HOME regional office and P76.190 million was released by the HOME Naga City office. "The housing loans released represent 798 housing units broken down to 458 units for HOME Legazpi and 340 units for HOME Naga."
Britanico also said that housing loans porfolio in Bicol totaled 9,107 as of December 2002, 6,064 of which are with the Legazpi City HOME office while 3,043 are from Naga City office.
Britanico also said that Pag-IBIG has reduced the interest rates for its housing loan program as well as increased its loan to collateral ratio. This will encourage Pag-IBIG mambers to take advantage of the benefits, available added with the new attractions to make it more accessible to Pag-IBIG Funds’s 112,868 members regionwide.
Two new features was approved by the Pag-IBIG Fund Board of Trustees with the issuance last October 30 of HOME Circular No. 189-B of the Consolidated Guidelines of the Pag-IBIG Housing Loan Program.
Britanico said that based on the guidelines, HOME now charges a low interest of 6 per cent per annum to a high interest rate of 12 per cent depending on the loan amount compared to the interest rates charged previously at 9 per cent to a high 14 per cent.
"The two-tier interest rate based on the new guidelines aims to provide incentives for members who pay promptly," said Britanico.
For housing loans not more than P150,000 the borrower shall pay an interest rate of 6 per cent a year if loan payment is made on or before due date. But if the interest is paid after the due date, the interest is increased to 8 per cent.
Pag-IBIG Fund is now offering housing loans as high as P2 million to qualified borrowers with interest rate of 12 per cent - if payment is made on or before due date.
Britanico also said that the Fund has increased the loan-to-collateral ratio to 100 per cent for loans up to P500,000 and 90 per cent for loans over P500,000 to P2 million.
A 100 per cent loan-to-collateral ratio means that loan applicants need not worry in securing a collateral when valuation or appraisal is more than the loan amount they are applying.
The Pag-IBIG housing loan may be used to finance any or a combination of the following: purchase of a fully developed lot not exceeding 1,000 square meters within a residential area; purchase of a lot and construction of a residential unit; purchase of a residential house and lot, townhouse or condomunium unit inclusive of a parking lot; construction or completion of a residential unit on a lot owned by the member; home improvement; refinancing of an existing mortgage loan with an institution acceptable to the HOME, provided that the loan to be refinanced is current and updated at the time of the loan application and the account reflects a perfect repayment history for at least two years as supported by a borrower’s official receipts.
Pag-IBIG is an acronym for Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.