MAJORITY of the Home Development Mutual Fund (Pag-IBIG Fund) members do not avail of loans from the government-run corporation, a key official revealed.
Pag-IBIG Fund OIC chief executive officer Acmad Rizaldy Moti said 96 percent of the 17.3 million members are pure savers. That means only 700,000 members avail of housing and multi-purpose loans from the fund. Moti was in Cebu to meet with Visayas-based developers.
Some members, however, opt to obtain credit through private banks.
In an interview on Friday, Moti encouraged families who are still renting homes to buy their own unit, as this is more economical. Through Pag-IBIG Fund, borrowers can avail of reasonbable interest rates for their home loans.
Pag-IBIG Fund follows a 5.5 percent interest rate per annum for housing loan, with a maximum loan term of 30 years.
This year, Moti said they hope to raise the number of members from 18.5 million to 19 million.
Also for this year, the state-run corporation has set housing loan takeouts amounting to P65 billion, 15 percent higher from last year’s P57.3 billion.
In the Visayas, the fund released P6.7 billion in housing loans in 2016, the highest record for the region.
In the first quarter of 2017, Pag-IBIG Fund extended housing loans amounting to P14.4 billion in the first three months, or 27 percent higher during the same period in 2016.
Promising to eliminate red tape in its operations, Moti said Pag-IBIG Fund will better service its members and will attract more borrowers this time.