State deposit insurer Philippine Deposit Insurance Corporation (PDIC) is granting payment relief for corporate and closed banks’ clients while the entire Luzon is under enhanced community quarantine period to contain the pandemic.
The payment relief is applied retroactively beginning March 15 and shall be effective for the entire duration of the quarantine period as determined by the President, according to a statement from PDIC.
“Borrowers who have scheduled payments, including downpayments are not obligated to settle their accounts during this period. Borrowers who have loans with monthly amortizations, are given a one month extension in the term of their loan. They can thus, settle their payments due, without penalty charges, one month from the lifting of the quarantine period,” said PDIC.
Moreover, all subsequent amortization schedules will be adjusted by one month.
Meanwhile, borrowers who have loans under quarterly, semestral and annual amortizations or lump-sum payments have a one-month grace period reckoned from the lifting of the community quarantine to settle their accounts without penalty charges.
For real property buyers with payments, including downpayments due during the quarantine period, they are also not required to pay the amounts due during the period.
Those who pay monthly installments are given one-month extension in the term of their obligation and thus may settle payments without penalty charges within one month from the lifting of the quarantine period. Their subsequent amortization schedules shall also be adjusted by another month and they shall also be given one-month grace period from the lifting of the quarantine period to settle their respective amortizations or lump-sum payments without penalty charges.
Lessees of PDIC and closed bank properties whose lease payments are due during the quarantine period are also give one-month grace period from lifting of community quarantine to pay without penalty charges.
However, they may opt to pay the amount due within the remaining term of the lease contract, divided pro-rata without penalty charges.
While 400 of its clients have issued postdated checks to cover payments for loans, property acquisitions and lease, PDIC said these checks will not be transacted consistent with the payment relief terms.
These shall be deposited one month after the lifting of the quarantine period because these checks will be used by clients to cover their basic needs at this time, PDIC said.
Image credits: Bernard Testa