Implementation of Mandatory Grace Period for Loan Payments During the Community Quarantine Period

Loan payment relief applies to credit card holders

a. BSP Memorandum No. M-2020-018 dated April 06, 2020 addressing all banks, quasi-banks, non-stock savings and loan associations, credit card issuers, trust department/corporations, pawnshops, and other credit granting entities under the supervision of BSP to grant a mandatory 30-day grace period for payment falling due within the ECQ period and to extend the payment loan period for 30 days. The grace period has effectively rescheduled the amortization such that new due date is extended for one month (i.e. plus one monthly amortization).

Loan payment relief applies to ALL lenders

b. Securities and Exchange Commission (SEC) on the implementation of the mandatory grace period for all loans with principal and/or interest falling due within the enhanced community quarantine and other prevailing rules during the covid- 19 pandemic clarifying that insofar as the Securities and SEC is concerned, the IRR of Section 4(aa) of the Bayanihan to Heal As One Act covers financing companies (FCs), lending companies (LCs), and microfinance NGOs (MF-NGOs). It also covers loans that were obtained through online lending applications/platforms that are owned and operated by registered FCs and LCs. It provides that the mandatory grace period extends the deadline for the payment of loans with principal and/or interest falling due within the ECQ period, and it aims to give borrowers more time to raise the funds needed to repay their loans and to allow them to prioritize their needs amid the pandemic. Further, all covered loans with maturity date of the principal and/or interest, including amortizations, within the ECQ Period shall be given a mandatory thirty (30)-day grace period, without incurring interest on interest, penalties, fees, and other charges.


Moreover, FCs and LCs are warned that any violation or non-compliance shall be dealt with to the full extent of the law.

c. Cooperative Development Authority (CDA)

CDA Memorandum dated April 2, 2020 reminding all cooperatives duly registered by the Authority which provide credit and other lending services to strictly comply with the law.

6. Should you have any information or have encountered problems on the non-implementation of the mandatory grace period for loan payments during the community quarantine period under authorized loan moratorium coverage, please refer to the following hotlines:

For PLIs accredited in the APDS- please contact the Finance Service-Employee Account Management Division (EAMD) through email at fs.eamd@deped.gov.ph or call (02) 8633-7248;

For PLIS not accredited in the APDS:

a. BSP Supervised PLIs- please contact the Consumer Affairs Group through email at consumeraffairs@bsp.gov.ph;
b. SEC Supervised PLIs- please contact the Enforcement and Investor Protection Department (EIPD) through email at epd@sec.gov.ph;
c. CDA Supervised PLIs- please contact the Regulation Division through email at regulation@cda.gov.ph or helpdesk@cda.gov.ph.

For your reference, information and guidance. ”

Source: DepEd Usec. Annalyn M. Sevilla

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