State-guaranteed housing loans hit P343 billion in H1

MANILA, Philippines —  The government has guaranteed P343 billion worth of housing loans in the first half, signaling continued demand for affordable and socialized housing finance, according to the Philippine Guarantee Corp. (PhilGuarantee).

In a statement, PhilGuarantee said it recorded strong growth in its housing credit guarantee portfolio from January to June, reflecting sustained lending activity and demand for low-cost housing finance.

During the period, the total value of loans guaranteed amounted to P343.39 billion, up by 9.4 percent from P313.77 billion in the same period last year.

“This growth reflects the combined contribution including guaranteed socialized housing loans under the Abot-Kaya Pabahay Fund (AKPF),” the state-run firm said.

PhilGuarantee provides credit guarantees to banks and financial institutions to help manage credit risk and encourage lending to key sectors.

The programs helped 412,028 beneficiaries as of the first half.

The state-run corporation also said 58 of its 206 partner lending institutions (PLIs) played a key role in expanding access to sustainable housing finance during the period, helping its mandate of boosting the financial system and enabling more Filipino families to achieve affordable homeownership.

“PhilGuarantee remains committed to encouraging private and public financial institutions to extend credit to the agricultural sector by providing robust risk-mitigating credit guarantee coverage, thereby supporting national priorities in rural development and food security,” it said.

PhilGuarantee also said its agricultural credit guarantee operations grew in the same period, attributed to higher lending activities among PLIs supporting small farmers and fisherfolk.

According to its latest Agricultural Guarantee Fund Pool status report, guaranteed loans jumped by 43 percent to P3.34 billion as of end-June from P2.34 billion in the same period a year ago.

Commercial, thrift and rural banks, which led the expansion, jumped by 50.6 percent to P3.09 billion from P2.05 billion.

Partner cooperatives also rose 23.8 percent year-on-year to P176.99 million in the first half.

As of end-December 2025, PhilGuarantee’s year-on-year value of outstanding guarantees amounted to P310.6 billion.