DepEd issues guidelines on Loan Payment Refund and moratorium

DepEd issues guidelines on Loan Payment Refund and moratorium

DepEd issues  Advisory on the Implementation of Implementing Rules and Regulations (IRR) 4 (AA) of the Republic Act (RA) No. 11469, otherwise known as the "Bayanihan To Heal As One Act" particulary on loan payment refund for April payroll and moratorium of loan payments for some GFIs, PLIs, and Deped Provident Fund for May and June payroll.

The Department of Finance (DOF) has issued on April 1, 2020 the implementing rules and regulations (IRR) of RA 11469, othewise known as the "Bayanihan to Heal as one Act" which directs all lenders ro grant a 30-day grace period or extension for the payment of all loans, falling due witinn the enhanced community quarantine (ECQ) period, withour imposing interest onr any additional charges and fees on the borrowers. The IRR took effect on April 2, 2020, following its publication in newspapers.

In line with this order, several financial institutions have granted moratorium or extension on the payment of loans.

Details of which can be found below:

Bangko Sentral ng Pilipinas - Supervised Financial Institutions (BSFIs)
Relief granted includes 30 days grace period in the payment of loans and extended loan period for 30 days. Such that new due date is extended for one (10 month. (i.e. plus one monthly amortization) based on BSP Memorandum No. M-2020-018 dated April 6, 2020.

Government Service Insurance System (GSIS)

Relief granted includes 3-months moratorium (i.e. march, April, May) without interest and corresponding extension ofloan payment to three (3) months through Memorandum Circular No. 15, s. 2020 (annex B). New due dates shall be extended for three (3) months.

DepEd Provident Fund (PF)

Relief granted includes 3-months moratorium on payment of PF loans from april to June, extending the payment for an additional three (3) months, such that new dates shall be extended for three (3) months, without accruing additional interests and penalties.

Land bank of the Philippines

Relief granted includes 60-days extension period payment option that allows Salary Loan borrowers to defer the covered amortization period of March 15 to April 30, without penalty charges.

Pusuant to the Bayanihan Act, the DOF IRR, and the various issuances of different financial institutions, and following the decisions of the Deped's Executive Committee (EXECOM) and Management Committee (MANCOM), in their respective meetings last April 7, 2020, and in consultation with Private Lending Institutions (PLIs) and DepEd internal stakeholders on April 7 and 8, 2020, respectively, the following shall be implemented in relation to the processing of march, April, May, and June 2020 salaries of DepEd employees.

Here are the agreed action for each payroll period from March to May, 2020

For March 2020 Payroll
Remit to concerned PLIs, GFIs (i.e. GSIS, Pag-IBIG and LBP) and DepEd Provident Fund all due loan payment deductions made in March payroll.

No refund of loan deductions to DepEd employees shall be made in March payroll considering that: 1) the payroll for the said month was done in advance as an internal accomodation made to all employees to prepare for the ECQ period and which is prior to the issuance of the DOF IRR, 2) some regions already remitted the March loan deductions; and 3) policy on the March refund should be consistent and uniform to all regionsfor a more efficient implementation in terms of adjuestments in payroll system and processing/ remittance of the refund to the concerned employees.

READ: Deped to refund Loan payment on April 20, process May salary, Mid-year bonus early

For complete information and details please refer to attach issuance below: