The government said that all loans in lending institutions are now required to give a 30-day grace period due to the prevailing enhanced community quarantine in Luzon.
The recent law signed to address the coronavirus disease or COVID-19 pandemic has a provision that covers all banks, quasi-banks, non-stock savings and loan associations, credit card issuers and pawnshops. This is signed by Finance Secretary Carlos Dominguez.
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“All covered institutions shall implement a 30-day grace period for all loans with principal and or interest falling due within the ECQ (Enhanced Community Quarantine) period without incurring interest on interest, penalties, fees and other charges,” the new law stated.
Loans like salary, personal, housing, auto loans, as well as credit card payments are covered under this provision. No incurring interest, penalties, fees and other charges should be imposed.
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Also covered are financial institutions under Bangko Sentral ng Pilipinas, Securities and Exchange Commission, Cooperative Development Authority, Government Service Insurance System, Social Security System and Pag-IBIG.
The enhanced community quarantine will last until April 12. The loan payment extensions should be extended if President Rodrigo Duterte decided to extend the quarantine period.
