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Lenders are required to implement a one-time mandatory grace period of 60 days for all loans that are due on or before December 31, 2020.
The BSP (Bangko Sentral ng Pilipinas) has directed all supervised financial institutions to implement and immediately meet a mandatory 60-day one-time grace period for loan payments.
In a memorandum, the central bank directed all supervised lenders to “implement a one-time mandatory grace period of 60 days for all existing, outstanding and outstanding loans, or any part thereof, by December 31, 2020 or earlier “.
“The mandatory 60-day grace period will apply to each loan from individuals and entities with multiple loans.”
Lenders are instructed not to charge or apply interest on interest, penalties, fees, or other charges during the mandatory single 60-day grace period to future payments or repayments from borrowers.
The directive is in compliance with Section 4 (uu) of the ‘Bayanihan Law for Recovery as One’ (Bayanihan 2), or the ‘Republic Law No. 11494’, which came into force on September 15 .
According to the BSP, the borrower can pay the accrued interest during the single 60-day grace period on a staggered basis until December 31, 2020.
“However, this will not prevent the borrower from paying the accrued interest in full on the new due date.”
Lenders and borrowers can also agree to a grace period of more than 60 days and / or payment of accrued interest on a staggered basis after December 31, 2020.
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