The office of the Undersecretary for Finance released a Memorandum No. 0493.
A general letter signed by Secretary Leonor Briones was sent to all accredited PLIs under the Automatic Payroll Deduction System encouraging them to waive the collection of all loans and the Department will not collect and remit the amortization in the payroll for 2 consecutive months on the conditions:
b. The Department will ensure that all PLIs will not impose interest on interest and any additional charges during the grace period of 2 months. Collection of accrued interest shall be outside payroll system.
In accordance with the above provision, it is the responsibility of all lending institutions, public and private to implement the 60-day grace period on the payment of all existing, current and outstanding loans falling due or any part thereof, on or before December 31, 2020.
It is highlighted, "Thus, while waiting for the confirmation from the Automatic Payroll Deduction System (APDS) accredited PLIs, all concerned are hereby directed to remit all payments of obligations deducted from September 2020 salaries of DepEd personnel, whether due to GSIS, Pag-ibig, Landbank of the Philippines and PLIs. Further updates and instructions shall be issued by this Office regarding this matter."
What does it mean?
Finance units of DepEd offices are hereby directed to remit the deductions to lending institutions. Which means, all loans will be deducted on September salary. There is NO REFUND this September.
