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  • Pag-IBIG Fund Explains What Grace Period And Moratorium Mean For Your Loan Payments

    Here's a short explanation about the two programs that can help you with your Pag-IBIG loan payments.
    by Rachel Perez .
Pag-IBIG Fund Explains What Grace Period And Moratorium Mean For Your Loan Payments
PHOTO BY iStock
  • Many Filipinos have fewer earnings or none at all since the quarantine and stay-home order was imposed on March 15, 2020. But bills and loan payments still stand even with the COVID-19 situation. Thankfully, several financial agencies have helped ease the financial burden.

    The Home Development Mutual Fund (HDMF), more popularly known as the Pag-IBIG Fund, offered a three-month moratorium on all loans of its member-borrowers affected by the quarantine, which was announced on March 18. The Bayanihan To Heal As One Act (Republic Act No. 11469), signed on March 24, also mandates a 30-day grace period for all rents and loans during the quarantine.

    With two financial programs in place, what does it mean? Do you get to avail of both or just one? Which one applies or is best for you? Pag-IBIG shares a quick guide on both programs for its member-borrowers to easier understand what they need to do.

    Can you avail of both the grace period and the 3-month moratorium?

    The grace period is mandatory, so you do not need to apply for the 30-day grace period. It's automatic as mandated by law. The three-month moratorium is optional, and you need to apply for it. You have until June 15, 2020 to avail it. (Click here to read more about Pag-IBIG's three-month moratorium.)

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    Who are qualified to apply, and which loans do the programs cover?

    Both programs cover members's loan payments for Pag-IBIG Housing Loan, Multi-Purpose Loan, and Calamity Loan. (Click here to apply for Pag-IBIG Multipurpose or Calamity Loan online.)

    Since the grace period is mandatory, it applies to all members who have an existing housing loan, multi-purpose loan, and calamity loan, and are residing or working under quarantine.

    The optional three-month moratorium may be availed by members whose incomes have been gravely affected by the quarantine or as a result of a declaration of a State of Calamity or State of Public Health Emergency, or by members whose employer or business has been suspended or forced to closed.

    Is the "grace period" different from "moratorium"?

    Both terms mean that you still need to pay for your loans but allows you to delay your payments. (Click here to know more about financial terms.)

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    The grace period mandated by law is 30 days, which means covered loan payments are deferred for 30 fays from its original due date. The delay may be longer depending on whether the president or local government unit (LGU) extends the quarantine.

    Under Pag-IBIG's moratorium, covered payments under the moratorium are postponed for three months.

    Is your loan payment covered by the grace period or the moratorium?

    The grace period covers all due date payments within the quarantine, including its extension. The moratorium, on the other hand, covers all housing loan payments due March 16 to June 15. It also covers multi-purpose loans and calamity loan payments due on April 15, May 15, and June 15.

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    Do the programs impose penalties or interest?

    Both programs impose no penalties on payments. Loans under the grace period will still incur interest, but will not incur interest under the moratorium.

    When will my next due date for payment be, and how much should I pay?

    Payments after the grace period should be made on or before the next due date after lifting the quarantine. For the three-month moratorium, payments are due on or before the next due date after June 15, 2020.

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    After the grace period, you need to pay the total amortization amount due during the quarantine and its extension. With the moratorium, you only need to pay one month's worth of loan payment and the total amount of insurance premiums incurred over the three months for housing loans.

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