Goodnews: 30- day Mandatory Grace Period of All Loans

by Ma'am Vi

Madam Annalyn M. Sevilla, DepEd Undersecretary, calls to DepEd employees to maintain dignity and respect for self and others. In her Official Facebook Page, the Undersecretary shared the DOF and BSP issuance for advance information and reference. ( Pls. note the highlighted ADVANCE INFO and REFERENCE).

The Department of Finance (DOF) issued the Implementing Rules and Regulations (IRR) for the 30- day mandatory grace period of all loans falling due within the Luzon-wide enhanced community quarantine. The IRR was signed by DOF Secretary Carlos Dominguez III as the guidelines for the Implementation of Sec. 4(aa) of RA No. 11469 otherwise known as Bayanihan to Heal as One Act.
Section 4(aa) of this RA stipulated that bank, quasi-banks, financing firms, lending companies, and other financial institutions both private and public including the GSIS, SSS, and Pag-IBIG Fund were directed to implement a 30-day minimum grace period for the payment of all loans. Said loans comprise but not restricted to salary, personal, housing, and motor vehicle loans, as well as credit card payments falling due within the period of ECQ- March 17 to April 13-“ without recurring interests, penalties, fees, or other charges”. In line with this, persons with multiple loans are also given a 30-day minimum grace period.
According to the IRR, all covered institutions shall not charge interest on interest, fees, and charges during the 30-day grace period to future payments/ amortizations of individuals, households, micro, small, and medium enterprises (MSMEs), and corporate borrowers.
“Covered institutions are prohibited from requiring their clients to waive the application of the provisions of the ‘Bayanihan to Heal as One Act’. Including among others, the mandatory 30-day grace period. Nonetheless the grant of grace period by the covered institutions shall not preclude the borrowers from paying their obligations. The initial 30-day grace period shall automatically be extended if the ECQ period is extended by the President pursuant to his Emergency Powers under RA 11469” the IRR read.
Be warned that Violators of the IRR provisions shall be subject to the appropriate penalties under RA 11469, as well as existing laws, rules, and regulations.
 However, Madam Sevilla calls for understanding as the DepEd April Salary was already processed. She said that the department may also release the loan payments due this April back to employees were not yet remitted to PLIs. “Let’s trust the people who work for you while you are in ECQ. Magtulungan po tayo at rumespeto sa sistema at proseso na mayroon tayo.” reminded the Undersecretary.

Source: Official Facebook Page of Annalyn M. Sevilla:
Attached: DOF and BSP issuance

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