Senator Win Gatchalian is pushing for the implementation of a minimum 30-day grace period for loan payments within the enforcement period of the enhanced community quarantine over Luzon.
Gatchalian is proposing that the grace period for loan payments cover all banks, including quasi-banks, financing companies, lending companies, and other financial institutions, both public and private, including the Government Service Insurance System (GSIS), Social Security System (SSS) and the Pag-IBIG Fund.
“Payment reprieve covers salary, personal housing, and motor vehicle loans, as well as payment for credit card purchase. “
The seasoned senator has suggested to include this provision as the senators deliberated, amended and approved the third and final reading of Senate Bill (SB) No. 1418, which is a substitute bill of SB 1413 and was adopted by the House of Representatives, and now known as the “Bayanihan To Heal As One Act”. Now a law, the Bayanihan To Heal As One law gives President Rodrigo Duterte several special powers to contain the COVID-19 pandemic.
The veteran legislator specified that the payment reprieve covers, but is not limited to salary loans, personal housing loans, and motor vehicle loans, as well as payment for credit card purchase.
The seasoned lawmaker said debtors should not incur interests, penalties, fees, or other charges during the grace period. Persons with multiple loans will likewise be given a minimum 30-day grace period for each loan.
“In the spirit of bayanihan, we need everyone to cooperate.”
Gatchalian also proposed a minimum 30-day reprieve on residential rents within the period of the enhanced community quarantine, without incurring interests, penalties and other fees and charges.
“Sa diwa ng bayanihan, kailangan ng kooperasyon ng lahat. Ito ang panahong dapat nagkakaisa tayo sa ating mga mithiin at hangarin na tulungan ang isa’t isa lalo na’t maraming nawalan ng trabaho. Dahil sa lockdown, marami ang nangangamba kung may babalikan pa silang trabaho. Alam naman po natin ang pinaka prayoridad sa ngayon ay pagkain, tubig, gamot at iba pang pangunahing pangangailangan sa bahay”, he said.
Meanwhile, the Bangko Sentral ng Pilipinas (BSP) earlier made available a grant of regulatory relief to some concerned banks and quasi-banks that may be affected by defaults from struggling borrowers due to the impact of the COVID-19 pandemic.