May 4, 2020 – The Securities and Exchange Commission (SEC) instructs financing companies, lending companies, and microfinance NGOs to extend the grace period applied on loans until May 15, 2020 as the enhanced community quarantine (ECQ) is also extended up to that date in key cities and provinces in the Philippines.
In a statement, SEC said its advisory is in pursuant to Section 3.01 of the Implementing Rules and Regulation of the Bayanihan to Heal as One Act. Section 3.01 states that all covered institutions (financing, lending companies, etc) must 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 law states that if the ECQ period is extended by the President of the Philippines, the grace period shall also be extended.
Because of the extension of the ECQ period, all covered institutions like lending companies must also extend the 30-day grace period to their borrowers whose payment will fall during the period.
Last month, SEC said it received complaints and reports of lenders and financing companies that are refusing to comply with the provisions of the Bayanihan to Heal as One Act. The Commission warned that violators will be dealt with to the full extent of the law.
Read the SEC Advisory here.
- List of Banks That Extend Grace Period for Loan Payments Due to Coronavirus Outbreak
- BSP Bayanihan to Heal as One Act FAQs
- BSP Tells Banks: No Interest on Interest, Fees, and Charges During Enhanced Community Quarantine
This article is published on BitPinas: SEC Instructs Lenders to Extend Grace Period on Loans as ECQ is Pushed Until May 15, 2020
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