Can Pag-Ibig follow GSIS?

April 14, 2020

PAG-IBIG Fund should take a cue from the initiative of the Government Service Insurance System to provide more help to borrowers affected by COVID-19.

Many Pag-Ibig members are worried over their housing loan amortizations as the crisis continues to render them incapable to pay their monthly obligations.

The pandemic has caused job displacements and income losses among Filipino workers.  Resumption of business operations remains uncertain with the Enhanced Community Quarantine still in place and is feared to be extended beyond April 30.

Workers hope Pag-Ibig  could follow the steps taken by GSIS which has granted a moratorium on loan payments of GSIS members and pensioners, including housing loan amortization of borrowers.

The GSIS Board of Trustees, in compliance with the “Bayanihan Heal as One” Law, decided to grant a moratorium to our borrowers, according to GSIS President and General Manager Roland Ledesma  Macasaet.

Section 4 (aa) of Republic Act 11469, otherwise known as the “Bayanihan Heal as One Law,” instructs all lending institutions to grant a 30-day grace period or extension on loan payments during the Enhanced Community Quarantine (ECQ) period without imposing interest or penalties on borrowers.

GSIS said its collection of loan payments due for the months of March, April and May 2020 shall be deferred. It will resume collection of loan payments on 01 June 2020 without penalty or additional interest. All loan terms, as a result of the moratorium, shall be effectively extended by three months.

Ledesma hoped that the 90-day grace period will give GSIS members some financial relief in these trying times.

Aside from regular government employees, pensioners with GSIS pension loans will also get a moratorium. The agency said it is halting loan deductions in their next month’s pension in May.

GSIS housing loan borrowers will likewise not be required to pay their monthly amortizations during the said 3-month period.

All GSIS borrowers are automatically covered by the moratorium, except those whose loan accounts are in default as of 29 February 2020. GSIS considers a loan in default when the account has incurred more than six months of unpaid amortizations.

Macasaet said GSIS already issued a memorandum circular (MC) instructing all heads of government agencies to stop loan deductions for the months of March, April and May 2020.

He however emphasized that premium contributions of government employees will continue to be deducted and remitted to GSIS.

GSIS shall resume collection of loan payments on  June 1, 2020. For sure, many members of GSIS is thankful for this huge consideration.

Can Pag-Ibig do the same?