The Securities and Exchange Commission (SEC) urges financing and lending companies to adopt relief measures for borrowers whose ability to pay their debts may have been compromised by rising fuel prices resulting from the conflict in the Middle East.

In a notice dated April 16, the Commission called on financing and lending companies to implement calibrated and sustainable reliefs for borrowers, in line with the declaration of a State of National Energy Emergency under Executive Order No. 110, Series of 2026.

“We recognize the importance of the financing and lending industry in extending credit to Filipinos in need. In times of economic disruption, their contribution in offering financial flexibility to the public is even more clear,” SEC Chairperson Francis Lim said.

He added, “We urge the industry to help our fellow kababayans by providing financial relief to enable them to manage their finances better and navigate this difficult period.”

The SEC recommended that financing and lending companies implement loan structuring or rescheduling programs as priority relief measures.

Loan restructuring programs may include payment schedule modifications, loan term extensions, adjustments to installment amounts based on the borrower’s capacity to pay, and other reasonable accommodations that facilitate continued repayment without undue financial strain.

Financing and lending companies may also extend a grace period of at least one month on loan payments, depending on the borrower’s financial condition.

The grant of a grace period should be targeted, or based on the demonstrated financial distress of the borrower, and calibrated, considering the company’s financing capacity and liquidity position.

Financing and lending companies are likewise encouraged to waive or refrain from imposing penalties, surcharges, and similar charges during the grace period, consistent with fair and reasonable lending practices.

They are also encouraged to adopt a proportional approach in implementing relief measures based on their own financial capacity, including their total assets. This ensures the continued stability of the lending sector while providing necessary breathing room for vulnerable borrowers.

Entities with greater financial capacity, scale of operations, or exposure to high-volume consumer lending are expected to take a more proactive role in extending meaningful relief measures, including structured restructuring programs and, where appropriate, targeted grace periods.

Other entities may extend relief measures on a case-by-case basis, taking into account their financial viability, liquidity position, and operational capacity.

Meanwhile, financing and lending companies operating online lending platforms or engaged in high-volume consumer lending are likewise expected to adopt a more proactive approach in providing relief, regardless of asset size.

To uphold transparency, financing and lending companies are encouraged to ensure that all relief arrangements are properly documented in writing, clearly explained to borrowers, and supported by the borrower’s informed consent.