Three Loans:

1. House Loan – PAG-IBIG Affordable Housing Program (P580,000)

The interest rate for the PAG-IBIG Affordable Housing Program is fixed at 3%
per annum for loans up to PHP 580,000. PAG-IBIG Affordable Housing Program is an
attractive option for low-income Filipinos looking to purchase a home, with low interest
rates, minimal fees, and flexible payment terms.
Repayment Terms:
 Loan term: up to 30 years
 Payment terms: monthly amortization
 Payment options: post-dated checks or auto-debit arrangement

2. Land Loan – Security Bank Land Loan (P300,000)

Security Bank's Land Loan is a great option for borrowers looking for a low
interest rate, flexible payment terms, and minimal fees. Security Bank's Land Loan has
minimal fees and charges, which means that borrowers can save money on upfront costs
associated with the loan. Security Bank's land loan interest rates may vary from 6% to
12% per annum, depending on the loan term and other factors.
Repayment terms are:
 Loan term: up to 15 years
 Payment terms: monthly amortization
 Payment options: post-dated checks or auto-debit arrangement

3. Medical Loan – BDO Medical Expense Loan (P200,000)

BDO Medical Expense Loan is a loan program offered by Banco de Oro (BDO)
in the Philippines designed to cover medical expenses for various health procedures,
treatments, and hospitalization. The interest rate for a BDO Medical Expense Loan for
PHP 200,000 is fixed at 0.99% per month or 11.88% per annum. The repayment term can
range from 3 to 36 months, depending on the borrower's preference, with equal monthly
amortizations.
Best Deal:
It’s important to compare different loan options to identify the best deal. Some factors to
consider when comparing loans include interest rates, fees, repayment terms, and any other terms
and conditions. By comparing these different loans, I identified the most affordable and
beneficial option which is the Housing Loan.
The PAG-IBIG Affordable Housing Program is considered a good option for home
financing, as it offers lower interest rates compared to other housing loan programs in the
Philippines, making it an affordable option for low- to middle-income borrowers. The program is
backed by the Philippine government through the Home Development Mutual Fund (HDMF),
providing additional security to borrowers and ensuring the stability of the program. The
program's maximum loan term of 30 years allows borrowers to spread out their payments over a
longer period and make their monthly amortizations more affordable.
Ways to reduce the amount owed on a loan:
Making additional payments toward the main balance of a loan is one approach to
decreasing the amount owing on a loan. I can minimize the overall interest paid over time and
perhaps pay off the loan faster if I pay more than the minimum needed payment. Reducing the
amount owed on a loan can help borrowers save money on interest and pay off their debt faster.
Making extra payments towards the principal amount of a loan can help reduce the amount owed
and shorten the loan term. Also, increasing the amount of the monthly loan payment can help
reduce the amount owed and shorten the loan term. Another way is to make bi-weekly payments
instead of monthly payments, as this can help reduce the amount owed and shorten the loan term.
Lastly, it may be wise to prioritize paying off the one with the highest interest rate first, as this
will reduce the amount of interest being paid over time and help save money in the long run.