Metro Manila (CNN Philippines, April 6) – While consumers struggle with the disruption brought about by the coronavirus crisis, the government is implementing some measures to help ease the financial burden of ordinary people.
In line with the “Bayanihan to Heal As One Act,” the Bangko Sentral ng Pilipinas (BSP) required all financial institutions to implement a 30-day grace period on all loans with principal and interest falling due within the enhanced community quarantine period.
This means that any loan due within March 17 to April 12 is covered by the 30-day grace period.
Finance Assistant Secretary Tony Lambino told CNN Philippines that all BSP-regulated lending groups should follow the grace period and cannot apply interest, penalties and additional fees.
“For lenders na sakop ng BSP, pati po yung last payment natin ay uurong ng one month. So kunwari, yung loan ay hanggang April 2024, yung last payment magiging May 2024,” Lambino said in an interview on CNN Philippines.
[Translation: For BSP-regulated lenders, the last payment will be pushed back by one month. For example, the loan is due in April 2024, the last payment will be made in May 2024.]
“Kasama ang utang sa pawnshop, credit card, housing, car loan, [social security system contributions], any repayment due within the [enhanced community quarantine],” he added.
[Translation: Pawnshop, credit card, housing, car loan, social security system contributions, any repayment due within the enhanced community quarantine is included.]
In case the quarantine is extended, Lambino said there are provisions in the law that allow for adjustments.
“Pagdating sa approved interest na grace period, pwede rin i-amortized yun across the life of the loan,” he added.
[Translation: When it comes to approved interest, which is covered by the grace period, it can also be amortized across the life of the loan.]
Lambino said the public they may report erring financial institutions to the BSP’s consumer affairs department.
“There are severe penalties for financial institutions who do not comply with the 30-day grace period,” he said.
Borrowers can expect some relief as banks adopted a month-long payment holiday on loans falling due amid the enhanced community quarantine, the Department of Finance said Monday.
