SEC Orders Mandatory Grace Period on Loans During ECQ for Financing, Lending and Micro-finance

Please be advised that, in view of the further extension of the Enhanced
Community Quarantine (ECQ) Period until 15 May 2020, the initial thirty (30)-day
grace period for the payment of loans, as provided under Section 4(aa) of Republic
Act No. 11469, or the Bayanihan to Heal As One Act1
, shall apply to all loans with
principal and/or interest falling due within the extended ECQ Period, from 17 March
2020 to 15 May 2020.



This is pursuant to Section 3.01 of the Implementing Rules and Regulations
(IRR) of Section 4(aa) of the Bayanihan to Heal As One Act, which reads:

“Section 3.01 Mandatory Grace Period. 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.” 

In this light, all FCs, LCs and MF-NGOs are hereby directed to extend the 30-
day grace period to borrowers with payments due within the extended ECQ Period,
pursuant to Section 4(aa) of the Bayanihan to Heal as One Act and its IRR.



Full memorandum advice of SEC can be viewed here.