CEBU CITY – The Home Development Mutual Fund (Pag-IBIG Fund) office here is projected to release some P154 million worth of developmental loans for this year, to aid developers who lack funding for the construction and implementation of their projects, especially those venturing into housing.

Rio Teves, assistant department manager for operations of the Pag-IBIG Fund Cebu branch in a recent forum here, is encouraging developers to avail of the said loan program as last year they have disbursed more that P300 million.

Teves disclosed that last year, the agency was able to grant loans worth R368 million to four developers here which include the Johndors Development Corporation, Pedro Regalado and Sons Housing Project, New Bajanlay Homeowners Association Inc., and J. King and Sons Corporation.

“The objective of the program is to create additional housing inventories through the provision of developmental financing at easier terms and lower rates to developers or proponents of housing projects,” he said.

He explained that the loan is payable in a span of three years, where the interest will be paid quarterly, with the first payment due at the end of the first quarter from the date of the initial loan release.

Further, Teves explained that the principal payment will be made quarterly with the first payment due on or before the end of the 18th month from the date of initial loan release, while for the application of take-out proceeds at least 20 percent of the mortgage take-out proceeds due the developer from HDMF will be applied to the outstanding principal at any time after the initial release of the developmental loan.

Moreover, the purpose of the loan is only applicable to applicants who are in the development of residential subdivisions including medium and high rise residential buildings (MHRBs), construction of units eligible for mortgage financing under the consolidated guidelines of the Pag-IBIG Housing Loan Program.