Pag-IBIG declares moratorium on increases in interest rates

Aug. 30, 2018

by James Jimenez, ADDU Intern

DAVAO CITY, Philippines — There will be no increase in interest rates of Pag-IBIG Fund’s home loan for the next years as long as the stakeholders and members are still paying.

Pag-IBIG net income for the first six months of 2018 is P16.09 billion which is a 20 percent year on year growth. The expected net income before 2019 is P31 to P32 billion.

This growth is happening despite the move of Pag-IBIG to lower their interest rate to make loans affordable for every Filipino.

In 2012 Pag-IBIG Home loan had an interest rate of 12.25 percent to be paid within 30 years while the banks only ask 6-8 percent. Starting 2012 Pag-IBIG targeted the lowering of interest rates when most banks increased rates.

“That is one of our commitments to our President Rodrigo Duterte, to make the interest rates more affordable,” said Pag-IBIG CEO Acmad Rizaldy Moti.

Pag-IBIG Fund’s lowest interest rate for the low-income earner is at three percent. Regular members who are earning more than P12,000 a month, one-year fixing is 5.37 percent for a year, which is lower compared to the 5.5% and 6.375% to 6.5% for three-year fixing.

Pag-IBIG Mindanao Operations for housing recorded 90 percent year on year growth and is projected to grow up to 20% by the end of the year. This year, Mindanao Operations is growing much faster than Visayas.

“Were positive that the growth will be sustained” Moti added. (

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