Good news for retired and active military personnel.
Armed Forces of the Philippines (AFP) chief Gen. Alexander Yano has approved a cut in interest rates in salary and pension loans released by the Armed Forces and Police Savings and Loan Association Inc. (AFPSLAI).
Yano, who chairs AFPSLAI’s board of trustees, has approved as much as a four-percent reduction in interest rates for one-year pension and salary loans.
Ma. Nymphia Ragel, head of AFPSLAI operations support office, said interest rate cuts took effect following its approval last Jan. 2.
“The recent reduction in nominal rates across all payment terms has, so far, been the most significant event in our operations,” she said.
From 13 percent, the current AFPLAI’s applicable interest rate is now down to nine percent for one-year salary or pension loans; from 13.3 percent to 11 percent for two-year loans; from 13.6 percent to 12 percent for three-year loans; from 13.9 percent to 12.25 percent for four-year loans and from 14.2 percent to only 12.2 percent for five-year loans.
Ragel said the reduced interest rates are so far the lowest for salary and pension loans offered by various financial institutions accredited by the AFP’s Financial Institutions Accreditation Board (AFPFIAB).
However, she said only bona fide AFPSLAI members are qualified to avail themselves of these new loan packages. Ragel said members can file their loan applications at any of the AFPSLAI branches.
She added that members who have existing loans may also qualify for loan renewal for a higher amount with the same or lower monthly amortization. – Jaime Laude