Pag-IBIG Fund borrowers get grace period

Credit to Author: The Manila Times| Date: Wed, 29 Apr 2020 16:19:09 +0000

The Home Development Mutual Fund (Pag-IBIG Fund) has granted a grace period on the loan payments of its borrowers during the enhanced community quarantine (ECQ) in compliance with Republic Act 11469, or the “Bayanihan to Heal As One Act.”

Eduardo del Rosario. PHOTO FROM PAG-IBIG FUND

In a statement on Tuesday, Human Settlements Secretary and Pag-IBIG Fund Board of Trustees Chairman Eduardo del Rosario said the agency had “deferred [the] loan payments of our 4.77 million borrowers for the duration of the quarantine. All of them are automatically covered by the grace period, so they don’t have to apply for this anymore.”

This, he added, is in accordance with RA 11469 “and the directive of President [Rodrigo] Duterte to alleviate the burden of Filipinos during this [coronavirus disease 2019 (Covid-19)] pandemic.”

According to Pag-IBIG Fund, the implementing rules and regulations of the Bayanihan law provide borrowers of all lenders in the country, including Pag-IBIG Fund, a 30-day extension for loan payments, which can be extended until the end of the ECQ.

The government imposed the Luzon-wide quarantine in mid-March to curb the spread of Covid-19 in the country. Initially set to be lifted on April 12, the lockdown was later extended to April 30. Last Friday, the government announced that the ECQ would be extended until May 15.

With the grace period, Pag-IBIG Fund Chief Executive Officer Acmad Rizaldy Moti said the agency had allowed the deferment of these payments amounting to more than P15 billion from 713,225 housing loan borrowers and over 4 million cash loan borrowers.

“Pag-IBIG Fund has always put sustainability over profitability. And for us, sustainability starts with taking care of our members, given that the Pag-IBIG Fund is owned by its members. Pag-IBIG is always ready to help whatever the situation, and this pandemic is no exception,” Moti said.

“Our members’ welfare is of primary importance to us, which is why we initiated in March a moratorium program, which is a separate program from the grace period prescribed under the law,” he added.

Under the moratorium program, qualified borrowers are given a longer loan payment reprieve of three months, with all penalties and interests waived. Members eligible to apply are borrowers of Pag-IBIG Housing Loan, Multi-Purpose Loan or Calamity Loan whose incomes have been impaired by the ECQ or by the loss of jobs or closure of businesses as a result of the declarations of state of calamity or state of public health emergency in their area.

“Our moratorium program provides longer payment relief to members who have lost their jobs or business during the quarantine. But since this is optional, members have to apply for it online. Whichever the case may be, either the grace period or our moratorium program, our borrowers now have one less thing to worry about,” Moti said.