The Home Development Mutual Fund or Pag-IBIG has shortened the time it takes to process housing loan applications, in line with the government’s thrust to cut red tape.
In a statement on Wednesday, Pag-IBIG said housing loan applications can now be approved within 17 days from the date when a borrower completes the requirements. The proceeds of the loan can be claimed three days after the post-approval compliance.
“Pag-IBIG Fund made this commitment after it enhanced its procedure for housing loan transactions, effectively cutting the processing time from 27 days to 20 days from application to release of proceeds, and reducing the number of requirements from 14 to 7 documents,” the state-run lender for housing development said.
Pag-IBIG President and Chief Executive Officer Darlene Marie Berberabe said the faster processing time is part of the bid to improve public service. “This is in line with the thrust of the new administration to enhance public service.”
Interest rates on housing loans are market-competitive and mostly lower at 4.5 to 5.5 percent, compared with other government agencies, Berberabe said.
The 5.5 percent interest rate is for a one-year repricing period, while the 4.5 percent rate for affordable housing is subsidized for 10 years.
“Up to three borrowers may qualify for a single loan while a single borrower can avail of multiple loans at the same time, subject to eligibility,” Berberabe said.
Borrowers can also benefit from the improved Mortgage Redemption Insurance (MRI), which offers a premium of only P0.23 per P1,000 from the P0.41, a 44 percent discount.
“With the new insurance, also covered now are total permanent disability and terminal illness, both of which were not offered by the previous insurance provider. Plus, the MRI now comes with burial benefits to further extend help to the heirs of the deceased borrower,” Berberabe said.
Pag-IBIG noted the processing time for insurance claims has been reduced to one day from 30 days.
“With the improved processes and the best-ever housing loan features, this is a good time for Pag-IBIG members to avail of Pag-IBIG housing loans,” Berberabe said.