Considering the financial conflict of many people during the global Covid-19 crisis, some Philippine government agencies offered many different loan programs. Pag-IBIG Fund is one of the lists of agencies to provide its members a three (3) month moratorium. Many people might be confused about what this moratorium was, and maybe a lot would think of it as the same as the grace period.
Difference Between the Grace Period and Pag-IBIG 3-Month Moratorium on Loan
They are different than how most people believe of them being similar. These two separate programs help members financially cope with the quarantine.
However, in this article, let us discuss the Pag-IBIG Fund’s three (3) month moratorium and the grace period to understand their differences.
What is PAG-Ibig Fund Three-month Moratorium?
More popularly known as the Pag-IBIG Fund, the Home Development Mutual Fund offered a three (3) month moratorium program on all loans to all members affected by the community quarantine.
This enables the borrowers to postpone and gives them the chance to delay their loan payments. Pag-IBIG Fund agency provides this program in helping the community out because of the pandemic. With this idea, all due dates are moved up until the third month.
However, this Pag-IBIG three (3) month moratorium is not automatic, it’s optional, and members need to apply for it. All applications are subject to approval, and those who do not want it need not go for it.
Pag-IBIG members with Pag-IBIG Housing Loan, Multi-Purpose Loan, or Calamity Loan whose financial gain has been lessened or impaired due to the pandemic are eligible for this Pag-IBIG Fund program.
What is a Grace Period?
Identical to the Pag-IBIG three (3) month moratorium, because of the COVID-19 outbreak, this grace period has also been offered to help borrowers lessen their worry about their loans. If members do not want to take the three (3) month moratorium, this is the type of program Pag-IBIG offered to them.
However, unlike the first program discussed, the grace period is automatic, and members do not need to apply for it. The program covers all members with a Pag-IBIG Housing Loan, Multi-Purpose Loan, and Calamity Loan residing in areas or working to places declared under Enhanced Community Quarantine.
Some specific differences between the two, such as the type of application, basis of each program, members covered, loan payments covered, penalties, and interest, are all put down here to better identify them for all concerned individuals.
Three-Month Moratorium
Here is the distinct information for the three-month moratorium:
- The program is optional.
- Application is online or at any Pag-IBIG Fund Branch.
- It is based on the offer of the Pag-IBIG Fund agency.
- Members covered in this program currently have Housing, Multi-Purpose, and Calamity loans whose financial gain or salaries have been affected due to pandemic.
- Loan payments covered are all types of Pag-IBIG Loan such as Housing Loan, Multi-Purpose Loan, and Calamity Loan.
- Due dates covered for the moratorium are from March 16, 2020, until June 15, 2020.
- The loan payments effect of this program is the postponement of loan payment for three months.
- No penalty is incurred under this program.
- No interest is applied to loan payments under this program.
- Amount due to be paid is one (1) month loan payment and insurance premium during the stretch of the three (3) month moratorium period.
- Payment resumption if members apply for this shall be on or before the next due date after June 15, 2020.
The Grace Period
Here is the distinct information about the grace period:
- The program is mandatory.
- Members don’t need to apply for this program because it is automatic.
- The basis of this program is on IRR of Republic Act No. 11469 or the Bayanihan to Heal as One-Act.
- Members covered by this grace period are all Pag-IBIG members with Housing Loan, Multi-Purpose Loan, and Calamity Loan who works or resides in areas under the Enhanced Community Quarantine imposed by the government.
- Loan payments covered are all types of Pag-IBIG Loan such as Housing Loan, Multi-Purpose Loan, and Calamity Loan.
- Due dates covered are those within the enhanced community quarantine, including its extension.
- The loan payment effect under this program is that payments covered are deferred 30 days from the due dates but can prolong if enhanced community quarantine is extended.
- No penalty shall be incurred under this program.
- Accrued interest is applied depending on the amount of the loan and its term.
- Amount due to be paid under the grace period are all amortizations due during the enhanced community quarantine, including its extension. You can pay the amortization’s accrued interest anytime during the remaining term of the loan.
- Payment resumption shall be on or before the next due date when the enhanced community quarantine was lifted.
Final Thoughts
You already have a clearer perspective about what makes the three (3) month moratorium differ from the grace period. This guide already helped you understand and see how they are both the same and different in a way. With these two financial programs, bills and loan payments still stand even with the pandemic. You have to choose which one applies or is best for you.
Would they be beneficial to borrowers? Even so, programs like both of these may have helped a lot to lift their burdens temporarily; we still encourage borrowers who are capable of paying to continue doing so to their loans. An outstanding credit evaluation will allow you to have loan offers with low-interest rates in the future.
