BusinessWorld Online
Lending, financing firms told to extend loan deadline
The Department of Finance (DOF) released the implementing rules and regulations (IRR) for the mandatory 30-day loan payment grace period.
This grace period, mandated by the Bayanihan to Heal as One Act, applies nationwide to all loans with principal and/or interest falling due within the enhanced community quarantine (ECQ) period.
The IRR clarifies that the ECQ period is from March 17 to April 12, 2020.
Lenders, including banks, quasi-banks, credit card issuers, pawnshops, and other credit-granting financial institutions, are prohibited from imposing interest on interest, penalties, fees, and other charges during this period.
The 30-day grace period will be automatically extended if the ECQ is prolonged.
Borrowers have the option to pay accrued interest over the remaining loan term or in full after the ECQ.
Topics in this story
Explore more stories about these topics.
🤖
This story was generated by AI to help you understand the key points. For more detailed coverage, please see the news articles from trusted media outlets below.
News Sources
See how different news organizations are covering this story. Below are the original articles from various Philippine news sources that contributed to this summary.
The Securities and Exchange Commission (SEC) has directed all lending and financing companies to postpone loan collections and penalty charges during the COVID-19 national emergency.
Read more →
The Bankers Association of the Philippines (BAP) supports the "Bayanihan To Heal As One" Act and trusts its Implementing Rules and Regulations (IRR) will safeguard financial institutions.
Read more →
Senator Bong Go urged banks and financial institutions to avoid raising loan interest rates during the enhanced community quarantine to alleviate the financial strain on citizens and businesses.
Read more →
The Department of Trade and Industry (DTI) is extending the 30-day grace period for rent payments to cover the extended Enhanced Community Quarantine (ECQ) until April 30.
+1
Read more →
The Department of Finance (DOF), through Revenue Regulations (RR) No. 7-2020 and authorized by the Bayanihan to Heal As One Act, has extended tax filing and payment deadlines nationwide.
Read more →