Borrowers squeezed by rising fuel costs may soon get breathing room, as the Securities and Exchange Commission (SEC) presses lenders to roll out relief measures to prevent repayment strain from worsening into defaults.

The regulator said Friday that it asked financing and lending companies, through a notice dated 16 April, to adopt “calibrated and sustainable” relief measures following the declaration of a State of National Energy Emergency under Executive Order No. 110, Series of 2026. 

“We recognize the importance of the financing and lending industry in extending credit to Filipinos in need. In times of economic disruption, their contribution in offering financial flexibility to the public is even (clearer),” SEC Chairperson Francis Lim said.

“We urge the industry to help our fellow kababayans by providing financial relief to enable them to manage their finances better and navigate this difficult period,” he added.

As the geopolitical tensions in the Middle East affect capacity to service their debts, the SEC said lenders should prioritize loan restructuring or rescheduling programs, including modifying payment schedules, extending loan terms, and adjusting installment amounts based on borrowers’ ability to pay.

It added that companies may grant a grace period of at least one month on loan payments, depending on the borrower’s financial condition, with such relief targeted at those in demonstrated distress and calibrated against the lender’s liquidity position.

To further cushion borrowers, financing and lending firms are encouraged to waive or refrain from imposing penalties, surcharges, and similar charges during the grace period.

The regulator stressed that relief efforts should be proportionate to each firm’s financial capacity, with larger lenders and those heavily exposed to consumer lending expected to take a more proactive role, while smaller players may extend support on a case-by-case basis.

Meanwhile, companies operating online lending platforms or engaged in high-volume consumer lending are expected to move more aggressively in providing relief regardless of asset size.

To ensure transparency, the SEC said all relief arrangements should be documented in writing, clearly explained to borrowers, and supported by their informed consent.