What’s the Difference Between the Pag-IBIG 3-Month Moratorium and the Grace Period?

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Due to the enhanced community quarantine (ECQ),  millions of workers in the affected parts of the country were unable to work. This led them to have no means of earning income. With that, several government agencies decided to help out; they released some of their offers for members and the Filipino working community to somehow provide some sort of relief.

Pag-IBIG Grace Period
This image was taken from The Philippine Star | Philstar.com

There are many different loan programs offered by the Philippine government agencies. If you want to see a quick summary of what these are, you can check out this article here: The List of Government Cash Assistance Programs For the COVID-19 Crisis

In that list is the Pag-IBIG Fund 3-month moratorium offered to its members. Now many people grew confused as to what this moratorium was; some even had suspicions about it being the same as the grace period.


However, they are different – in fact, they’re a lot different than how most people think of them being similar. In this article, we will be discussing what the Pag-IBIG 3-month moratorium is as well as the grace period.

Read: How to Avail the PhilHealth COVID-19 Packages

What is the Pag-IBIG Fund 3-month moratorium?

The Pag-IBIG 3-month moratorium is a program offered by the state housing fund. This gives borrowers a chance to delay payment for their loans. This initiative was brought about by Pag-IBIG in helping the community out because of the quarantine.

With the 3-month moratorium, all the due dates are moved up until the 3rd month. If you have questions, you can read about it here: Pag-IBIG Fund 3-Month Moratorium FAQs: Who Can Get it, How, and Other Questions, Answered

What is the grace period?

Akin to the Pag-IBIG 3-month moratorium, the grace period has also been put up because of the COVID-19 outbreak. The grace period is a type of program offered to members who do not want to take the 3-month moratorium.

There are certain differences between the two and we will go ahead and differentiate them for you. Without further ado, here are the differences between the Pag-IBIG 3-month moratorium and the grace period.

Grace Period
(Mandatory)

Type

3-Month Moratorium
(Optional)

All Pag-IBIG Members with the following loans: Multi-Purpose Loan and/or Calamity Loan, and Housing Loan who are working or residing in areas under the ECQ announcementCovered
Members

Pag-IBIG members currently with any of the following loans: Multi-Purpose Loan (MPL), Housing Loan, and/or Calamity Loan whose salaries have been affected due to the ECQ or the temporary or permanent suspension or closure of the business as a result of the Declaration of the State of Calamity and the State of Public Health Emergency.


Due dates covered are within the Enhanced Community Quarantine (ECQ) with its extension dates

Due Dates
Covered

Due dates covered are March 16, 2020 until June 15th, 2020

Payments that would be covered would be: Pag-IBIG Calamity Loan Payments, Housing Loan, and the Multi-Purpose Loan (MPL).

Covered
Loan Payments

Payments that would be covered would be: Pag-IBIG Calamity Loan Payments, Housing Loan, and the Multi-Purpose Loan (MPL).

Based on the Implementing Rules and
Regulations (IRRs) of the Republic Act (R.A.) of 11469 or the Bayanihan to Heal as One Act.

The BasisBased on the offer by the Pag-IBIG Fund.

Interest would be applied (depending
on the loan and the term).

Interest

No Interest will be applied to payments.

No penalties shall be incurred.Penalties
Applicable

No penalties shall be incurred.

The payments covered are postponed for  30 days or one (1) month from the due date. It can be prolonged in the
event that the ECQ is extended by the Local Government Units (LGUs) or the President.

Loan Payment
Effects

The payments covered by the dates
are postponed for three (3) months.

Amortizations that are due during the period of the ECQ and its extension dates. Interests accrued for the amortization can be paid anytime during the remaining loan term.

Amount Due

One (1) month loan payment and insurance premiums during the stretch of the 3-month moratorium period.

Resumption of payments shall be on or before the next due date from when the ECQ was lifted.

Payment
Resumption

Resumption of payments shall be on or before the next due date after the 15th of June, 2020.

Now, you have a clearer perspective about the differences between the Pag-IBIG 3-month moratorium and the grace period. This sparked some confusion because the grace period has recently just been announced.

Read: The GSIS COVID-19 Emergency Loan for Members, Available Now

With this guide, you’re able to differentiate them to see what it is you need.

Do you think that the Pag-IBIG 3-month moratorium is something that you would make use of? Or would the grace period be more beneficial to you? Check out how they’re both the same and different and choose wisely!

We have no means of knowing when the quarantine will be over so better maximize it to your capacity!

Source: Pag-IBIG Home Development Mutual Fund (HDMF)


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1 thought on “What’s the Difference Between the Pag-IBIG 3-Month Moratorium and the Grace Period?”


  1. What if i already avail the 3 month moratorium…can i still avail the grace period? or can i change may choice from 3 month moratorium to grace period?

    Reply

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