A three-month moratorium on loan and amortization payments instituted to mitigate the impact of the COVID-19 outbreak is expected to bring relief to 5,521,611 PAG-IBIG member-borrowers and the beneficiaries of housing programs of various government-owned and controlled corporations (GOCCs) under the Department of Human Settlements and Urban Development (DHSUD).
This is according to Cabinet Secretary Karlo Nograles, who in a press briefing on Wednesday assured the public that they need not worry about paying penalties for delayed amortization or loan payments.
With the moratorium, the collection of amortization for loan repayments is suspended
The moratorium will be in effect from March 16 to June 15 this year, Nograles said.
Section 4(aa) of Republic Act 11469 or the Bayanihan to Heal as One Act authorizes President Rodrigo Duterte to direct all banks, quasi-banks, financing companies, lending companies, and other financial institutions, public and private to implement a minimum 30-day grace period for the payment of all loans falling due within the period of the Enhanced Community Quarantine without incurring interests, penalties, fees, or other charges.
“Kung may mga loan po kayo, wag po kayo mag-alala. Sa mga GOCCs sa ilalim ng DHSUD, meron po tayong three-month moratorium sa mga loans natin mula March 16 hanggang June 15,” said Nograles, spokesman of the Inter-Agency Task Force on the Management of Emerging Infectious Diseases (IATF-EID).
Nograles pointed out that the move “will benefit a total of 5,521,611 Pag-IBIG member-borrowers and beneficiaries of the housing programs of these agencies, and covers an aggregate amount of 31.4 billion pesos in amortization payments due for the three-month period.”
The Palace official explained that under this moratorium, the collection of amortization for loan repayments is suspended from March 16 to June 15 this year, and that any additional interest or penalty for non-payment will not be imposed on borrowers.
The breakdown of the amount and the beneficiaries for each of the GOCCs are as follows:
– Home Development Mutual Fund: Housing loan payments worth P13.8 billion covering one million borrowers, and multipurpose and other short term loans worth P16.7 billion in loan payments of four million borrowers;
– National Housing Authority: loan repayment/amortization dues in the amount of P450 million, covering a total of 263,611 residential accounts;
– Social Housing Finance Corporation: 300 million pesos’ worth of monthly collections from some 240,000 informal settler families; and
– National Home Mortgage Finance Corporation: P165.5 million in borrower’s payments for more than 18,000 housing units.