What is the interest rate for the Pag-IBIG Multi-Purpose Loan?

The interest rate for the Pag-IBIG Multi-Purpose Loan is set at 10.5% per year. This rate is applicable to borrowers who take advantage of the loan, which is designed to provide members with financial assistance for various purposes, such as home improvement, education expenses, or medical emergencies.

The interest rate reflects Pag-IBIG Fund's efforts to balance providing accessible financial services to members while also maintaining sustainability and managing lending risks. This percentage is established by the government agency that oversees the Pag-IBIG Fund, ensuring it aligns with the organization's overall lending policies and objectives.

Understanding the interest rate is crucial for borrowers, as it influences the total amount they will need to repay over the life of the loan. A higher interest rate, for instance, increases overall repayment costs, while lower rates can make borrowing more affordable.