Pag-IBIG unveils lowest interest rates for new borrowers

State-run Home Development Mutual Fund (Pag-IBIG Fund) has unveiled promotional loans that offer housing loans with lower interest rates at 4.985% to new borrowers.

According to Pag-IBIG Fund vice president for public relations and information services Karin-Lei Franco-Garcia, the promotional period will run until December 2020.

"Nag-o-offer po kami ng pinakamababa ever in the history of Pag-IBIG Fund na interest rates. Ang pinakamababa po namin na ino-offer na interest rates at 4.985%. Dati ang pinakamababa ay nasa 5.3%," she said in an interview on GMA Super Radyo dzBB.

Under the promo, the 4.985% per annum will have a one-year repricing period. Borrowers may also avail of the 5.375% per annum interest rates under a three-year repricing period.

Franco-Garcia clarified, however, that the rates will only be available to new borrowers. Previous borrowers will be given previous rates.

According to its charter, the Pag-IBIG Fund is mandated to establish, develop, promote, and integrate a nationwide sound and viable-tax exempt mutual provident savings system suitable to the needs of the employed and other earning groups.

It is also mandated to motivate the public to better plan and provide for their housing needs, by membership in the HDMF, with mandatory contributory support of the employers. — Jon Viktor D. Cabuenas/BM, GMA News