On November 26, 2024, Secretary Sonny Angara requested all financial institutions to provide a loan moratorium for DepEd teaching and non-teaching personnel, as well as employees. This initiative aims to ease the financial burdens faced by these personnel, especially those affected by recent calamities. The implementation details are as follows:
Loan Moratorium Coverage
Eligibility:
One (1) Month Moratorium: All DepEd personnel.
Three (3) Month Moratorium: Bona fide DepEd personnel within calamity-declared areas as identified by appropriate government agencies.
Implementation Period:
The moratorium will run from January 2025 to April 2025, depending on the circumstances and agreements with financial institutions (FIs).
Regular payroll deductions will continue for December 2024.
Applicable Obligations:
The moratorium covers loan obligations, including principal, interest, penalties, and other charges during the specified period.
Salary deductions for insurance premiums and membership fees are excluded.
Area-Specific Coverage:
Only areas specified in Annex A are included. See the list of affected areas here: https://tinyurl.com/LoanMoratoriumAnnexA.
Participating Financial Institutions:
Annexes B to F outline the participating institutions and their specific moratorium terms:
Annex B: FIs offering a 4-month moratorium. See details here: https://tinyurl.com/LoanMoratoriumAnnexB.
Annex C: FIs offering a 3-month moratorium. See details here: https://tinyurl.com/LoanMoratoriumAnnexC.
Annex D: FIs offering a 1-month moratorium. See details here: https://tinyurl.com/LoanMoratoriumAnnexD.
Annex E: Members of Chamber of Thrift Banks and Rural Bankers Association of the Philippines granting moratoriums via refund but collecting interest. See details here: https://tinyurl.com/LoanMoratoriumAnnexE.
Annex F: Members of Salary Deduction Assurance Association, Inc. granting moratoriums via refund and waiving interest. See details here: https://tinyurl.com/LoanMoratoriumAnnexF.
Payroll Adjustments
Adjustments in Payroll Program:
The ICTS-SDD will update the payroll system to accommodate the moratorium, and this updated program will be distributed to all Regional Payroll Services Units (RPSUs).
Specific adjustments include:
Marking affected loan deductions as "Undeducted Obligations."
Extending loan termination dates by the number of months covered by the moratorium.
Maintaining a strict "First-In-First-Served" queuing system.
Ensuring no increase in net take-home pay due to undeducted obligations.
Implementation by Regional Units:
Regional units must follow the provided directives and adjust their payroll systems accordingly.
Application and Verification for New Loans
DepEd personnel may apply for new loans, subject to existing rules and guidelines.
Loan applications will undergo thorough verification to ensure compliance with this memorandum.
Interests and Penalties
Borrowers will not incur additional charges, penalties, or interest due to the moratorium.
The term of the loan will be extended without requiring lump-sum payments or accruing extra costs.
Voluntary Payments
Borrowers who wish to continue paying their obligations during the moratorium period can do so directly over-the-counter with their respective FIs.
Further Clarifications
The moratorium is intended to provide financial relief and pause loan payments, with corresponding term extensions.
Strict adherence to the "First-In-First-Served" queuing system will prevent lower-priority FIs from benefiting unfairly.
Verifiers must consider undeducted obligations when determining net take-home pay for loan eligibility.
Financial institutions have unique processes for handling refunds and interest waivers, as outlined in the annexes.
Annexes for Reference
Annex A: Affected areas eligible for moratorium benefits. https://tinyurl.com/LoanMoratoriumAnnexA
Annex B: Financial institutions granting a 4-month moratorium. https://tinyurl.com/LoanMoratoriumAnnexB
Annex C: Financial institutions granting a 3-month moratorium. https://tinyurl.com/LoanMoratoriumAnnexC
Annex D: Financial institutions granting a 1-month moratorium. https://tinyurl.com/LoanMoratoriumAnnexD
Annex E: Chamber of Thrift Banks and Rural Bankers Association members. https://tinyurl.com/LoanMoratoriumAnnexE
Annex F: Salary Deduction Assurance Association members. https://tinyurl.com/LoanMoratoriumAnnexF
For more details, visit the provided links in each annex or contact the relevant institutions directly.
This memorandum ensures proper execution of the loan moratorium, fostering financial relief for DepEd personnel. All concerned parties must strictly adhere to these guidelines to maintain transparency and efficiency in implementation.