Updates on Loan Payments to Private Lending Institutions

As per the latest update from DepEd Usec. for Finance Annalyn Sevilla on April 7, 2020, DepEd is now coordinating with the Private Lending Institutions (PLIs) regarding the arrangement of loan payments of their borrowers.

Here is the complete update from the official page of Usec. Sevilla:

Updates on coordination with PLIs, GSIS and DBM
April 7, 2020

A. Loan amortizations automatically deducted under the DepEd’s payroll system for April 2020 on behalf of GSIS DepEd Provident Fund (PF), and accredited Private Lending Institutions (PLIs) will be returned eventually to concerned DepEd borrowers through special payroll and will be credited to their respective payroll accounts.

1. On Monday, April 6, Secretary Leonor Magtolis Briones approved Board Resolution No. 02, s. 2020 of the DepEd Provident Fund National Board of Trustees, which imposed a three-month moratorium on payment of loans, in compliance with the Implementing Rules and Regulations (IRR) of Republic Act No. 11469 or the “Bayanihan to Heal as One Act”. The payment period for the said Provident Fund will also be extended for an additional three months while borrowers will not be charged accrued interest and penalty during the moratorium period, which can be extended upon the extension of enhanced community quarantine (ECQ) by the President. (See copies of cover memo and approval of SLMB; and advisory to all PF members/borrowers)

2. DepEd also secured an agreement with the Government Service Insurance System (GSIS), which is also applicable and beneficial to other government entities and employees, for a grant of moratorium in three-month suspension of loan payments for their members and pensioners. (See GSIS memo)

3. PLIs consultation and coordination -
DepEd has coordinated a better arrangement with private lending institutions (PLIs) to its Automatic Payroll Deduction System (APDS) program, which is aimed to be more responsive and beneficial to all concerned employees. The DepEd will not remit loan deductions for the payroll month of April 2020 to the PLIs but instead the said amount will be refunded to the concerned DepEd employees. No deductions will be effected during the ECQ period and the termination of the loan amortizations, in effect, will be automatically extended in DepEd’s payroll program for one month or based on the duration of the ECQ period. (See general letter sent to all
PLIs, FAQs and other materials used in the meeting with PLIs this morning)

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Caveat: Pursuant to the law and IRR, borrowers are not precluded from paying their obligations as they fall due during the ECQ, should they so desire. They may directly coordinate with the GFI or PLI concerned but it will be through individual or personal initiative.
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B. On the Performance-Based Bonus (PBB), the Department was notified by the Department of Budget and Management (DBM) that four DepEd regional offices (Region II, IV-A, V, and XII) were already endorsed for processing and eventual releasing of PBB funds for school-based personnel.
DBM is processing the PBB evaluation of other regional offices on a first-come, first-served basis and will be made available for release as soon as possible. We are also consistently following up for other regions’ PBB and the request for reconsideration for eligibility to grant PBB for non-school-based personnel, as well.

Blessed/Holy Tuesday to all...
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