DOF issues rules for 30-day loan grace period
The Department of Finance (DOF) issued implementing rules and regulations for a mandatory 30-day grace period on loans during the enhanced community quarantine, applicable nationwide under Republic Act No. 11469.
All financial institutions must implement this grace period without charging interest or penalties, in line with support expressed by the Bankers Association of the Philippines (BAP).
The Securities and Exchange Commission (SEC) has directed lending and financing companies to defer collection of payments and waive penalties during the national emergency caused by the coronavirus pandemic.
Covered loans include those due from March 17 to April 12, with an automatic extension if the quarantine period is prolonged by the government.
Borrowers may settle their dues during the quarantine but institutions cannot require clients to waive application for the loan payment moratorium program.
SEC Chairperson Emilio Aquino emphasized that compliance with these measures would greatly help Filipinos recover from the pandemic, encouraging lending and financing companies to follow suit.
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