The deadline for all types of loans that include, credit card payments and pawnshop loans were extended following the approval of a 30-day grace period mandated by law, the Department of Finance (DoF) said on Wednesday.
“The implementing rules and regulations (IRR) of a provision in the Bayanihan To Heal As One Act direct(s) all lenders to grant a 30-day grace period or extension for the payment of all loans… falling due within the enhanced community quarantine (ECQ) period, without slapping interest or any additional charges and fees on the borrowers,” the DoF said.
Under the IRR, the ECQ covers the period from 17 March 2020 to 12 April 2020.
Separately, a three-month moratorium on loans obtained from Home Mutual Development Fund or Pag-IBIG has been declared to allow 5.5 million of its members mitigate the impact of the COVID-19 pandemic, according to Cabinet Secretary Karlo Nograles.
He said the collection of amortization for loan payments is suspended from 16 March to 15 June this year and that any additional interest or penalty for non-payment will not be imposed on borrowers.
The suspension touches P31.4 billion worth of loan payments during the three months when amortization is on hold.
Finance Secretary Carlos Dominguez III said the provision covers banks, quasi-banks, non-stock savings and loan associations as well as credit card issuers and pawnshops.
Other credit granting financial institutions under the supervision of the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission and the Cooperative Development Authority, whether public or private, including the Government Service Insurance System, Social Security System and Pag-IBIG Fund, are also covered by this provision, Dominguez said.
The IRR also provides for the automatic extension of the measure should President Duterte decides to prolong the ECQ.
“No waiver previously executed by borrowers covering payments falling due during the ECQ Period shall be valid. Nonetheless, the grant of grace period by the above-mentioned covered institutions shall not preclude the borrowers from paying their obligations as they fall due during the period of ECQ should they so desire,” it added.
Earlier, various private lenders already extended their loan payment deadlines in addition to waiving interbank fees.
With a report from Francis T. Wakefield @tribunephl_FTW