SEC Notifies Lending Firms of Grace Period Extension During MECQ/GCQ
In view of the imposition of MECQ and GCQ in the country until May 31, 2020, the 30-day grace period for loan payments will be further extended to all loans with principal and/or interest falling due from March 17, 2020 to May 31, 2020.
May 15, 2020 – The Philippines Securities and Exchange Commission (SEC) notified financing companies (FCs), lending companies (LCs), and microfinance NGOs (MF-NGOs) on the extension of mandatory grace period for loans during the modified enhanced community quarantine (MECQ) and general community quarantine period (GCQ).
In a statement, the SEC said that in view of the imposition of MECQ and GCQ in the country until May 31, 2020, the 30-day grace period for loan payments will be further extended to all loans with principal and/or interest falling due from March 17, 2020 to May 31, 2020.
For example. if the person’s due date falls on May 18, 2020, the new due date will be June 17, 2020.
This is in pursuant to the Implementing Rules and Regulations of Section 4 of the Bayanihan to Heal as One Act: All Covered Institutions shall implement a 30-day grace period for all loans with principal and/or interest falling due within the ECQ Period without incurring interest on interest, penalties, fees and other charges. The initial 30-day grace period shall automatically be extended if the ECQ Period is extended by the President of the Republic of the Philippines pursuant to his emergency powers under the Bayanihan to Heal as One Act.
Read the article: Frequently Asked Questions About the Provisions of the Bayanihan to Heal As One Act About Loan and Credit Card Payments
Read the SEC Notice here.
