FAQs and T&Cs: Grace Period Program 1 and 2 for Loans and Credit Card

Metrobank is providing meaningful assistance to valued customers to help ease financial worries during these difficult times.

For Car and Home Loan, here’s a list of frequently asked questions to guide you further:

1. Is there a loan reprieve program available for borrowers during this time of the COVID-19 pandemic?

       Yes. On March 23, 2020, Congress passed Republic Act No. 11469 otherwise known as the “Bayanihan to Heal as One Act”, and, based on the Implementing Rules and Regulations of Section 4(aa) of the law, customers are granted a 30-day grace period for all loans with principal and/or interest falling due within the enhanced community quarantine (ECQ), subject to extension if the ECQ is likewise extended. Such loans shall not be charged interest on interest, penalties, or fees during the covered period.

2. Does Metrobank adhere to the Bayanihan to Heal as One Act?

       Yes. Beginning March 16, 2020, Metrobank has suspended collection of all loan payments. Auto-debit arrangements were turned off on March 20, 2020 and post-dated checks were not transacted beginning March 19, 2020. This suspension of payments will be in effect until June 15, 2020.

3. Am I qualified for the Grace Period Program? Do I need to apply to avail of the program?

       All Metrobank Car Loan and Home Loan clients with amortization payment falling due from March 16 to June 15, 2020 are qualified. You do not need to sign up, call or submit any documents to be qualified.

4. Will my loan payment be doubled on the following due date?

       No, your loan payment will not be doubled as we will extend the maturity of the loan corresponding to the grace period.

5. Will I be charged late payment fee and interest on interest? Will interest continue to accrue if I avail of the Grace Period?

       You will NOT be charged a late payment fee if you are unable to pay your amortization due from March 16 to June 15, 2020. Any loan-related late payment fee that will appear on your account will be waived or reversed. Likewise, no interest on interest will be charged to your account.

Interest will continue to accrue in accordance with Sec 5.02 of Implementing Rules and Regulations of the Bayanihan To Heal as One Act. This is the interest on the portion of the principal that remains unpaid during the grace period.

6. What are my payment options for the accrued interest?

       As we transition to the “new normal”, accrued interest will be collected at a later date.

For Car Loans:

Accrued interest will be charged in full at the end of the loan term. It will be collected together with your last amortization. For those paying via PDCs, you will be asked to issue a separate check amounting to the total accrued interest.

Sample Computation

Assumptions:

• Grace Period equivalent to 3 months
• Accrued interest for 3 months is P15,000.00
• Original maturity date: June 25, 2020
• New Maturity date is September 25, 2020

For Home Loans:

Accrued interest will be collected on installment for 6 months starting on your July amortization, but you may also pay it in full together with your July amortization. For those paying via PDCs, you will be asked to issue six (6) checks for the accrued interest installment amount or one (1) check if you are paying it in full.

*If the remaining term of your loan is less than 6 months, the accrued interest will be divided by the number of remaining months.

Sample Computations

I. Installment Option - 6 months installment (remaining term is more than 6 months)

Assumptions:

• Grace Period equivalent to 3 months
• Accrued interest for 3 months: P15,000.00
• Original maturity date: June 25, 2021
• New Maturity date is September 25, 2021

II. Installment Option - 6 months installment (remaining term is less than 6 months)

Assumptions:

• Grace Period equivalent to 3 months
• Accrued interest for 3 months: P15,000.00
• Original maturity date: June 25, 2020
• New Maturity date is September 25, 2020

III. Lump Sum Option (one time full payment together with July amortization)

Assumptions:

• Grace Period equivalent to 3 months
• Accrued interest for 3 months: P15,000.00
• Original maturity date: June 25, 2021
• New Maturity date is September 25, 2021

7. When will Metrobank resume collection of loan amortizations?

• I already issued post-dated checks (PDCs) for my loan payments. When will my check be deposited?
• What will happen if I have an auto-debit arrangement for my loan payments?

       Post-dated checks dated March 19 to June 15, 2020 were NOT/will NOT be deposited. Regular posting of PDCs will resume on June 16, 2020. All PDCs warehoused with us will follow the new deposit schedule.

For example:

• Due date: every 25th of the month
• Original maturity date: June 25, 2020
• New Maturity date is September 25, 2020

       Auto-debit from your account is turned off from March 20 to June15, 2020. Regular auto-debit will resume on June 16, 2020.

Assumptions:

• Accrued interest for 3 months: P15,000.00
• Chosen Option for Accrued interest payment: 6 months instalment
• Original maturity date: June 25, 2021
• New Maturity date is September 25, 2021

8. I got a system generated email regarding the payment of my loan. Do I still need to pay?

       No. It is a system-generated email message. Please disregard this message during the period of the enhanced community quarantine.

9. I do not want to avail of the Grace Period Program and want to continue my payments during ECQ/GCQ. What should I do?

       By sending an email or contacting your branch of account, you signify your agreement to immediately debit or deposit your PDCs for skipped payments and continue to debit or deposit your PDCs during and after ECQ.

• SEND EMAIL

       o Send an email to consumerloans_payment@metrobank.com.ph

       o Use NO PAYMENT EXTENSION_Surname, Name M.I. as the email subject

       o Provide your promissory note number and birthday in the email content

• CONTACT BRANCH OF ACCOUNT

       o Provide your promissory note number and birthday to the branch

If we do not get an email or call on or before June 15, 2020, it is understood that you will avail the Grace Period Program and your loan account will continue to earn interest (refer to item 6).

You may also contact your branch should you have other concerns about payment options on or before June 15, 2020.

10. If I update my payments, do I need to pay for the accrued interest?

       No, if you update the payments on or before June 15, 2020, you will not be charged accrued interest.

11. What will happen if the ECQ is extended?

       As provided by the Bayanihan Act, the grace period will be automatically extended if the ECQ is extended. Consequently, the maturity date of your loan will also be extended for a duration equivalent to the Grace Period availed. Your loan principal, however, will continue to accrue interest during the extended grace period.

Governing Regulations for reference:

Click here to view the document on Bayanihan to Heal as One Act Circular RA 11469

Click here to view the document on Implementing Rules and Regulations (IRR) of Section 4(aa) of RA 11469

For the Credit Card grace period:

We have updated our Skip Payment Program to comply with the implementing rules and regulations issued by the Bangko Sentral ng Pilipinas as specified in the Memorandum Nos. M-2020-017, M-2020-018 and M-2020-028. Our Skip Payment Program automatically grants all our cardholders a 30-day grace period for credit card billings falling due from March 17 to May 31, 2020 without incurring penalty interest on finance charges and late charges. For more details, please click here.

For more updates on the enhanced community quarantine guidelines, click here.

#MeaningfulBanking means continuing to provide assistance to those who need it most. #YoureInGoodHands

In response to the Bayanihan to Recover as One Act (BARO Act), or Republic Act No. 11494, Metrobank is offering Grace Period Program 2 (GPP2) to all qualified home and car loan borrowers. Grace Period Program 2 is a one-time non-extendible 60-day grace period granted to current loans with principal and/or interest, including amortizations, falling due from September 15, 2020 to December 31, 2020.

We recognize that there are borrowers who wish to continue their regular loan payments. As such, we will continue to debit your account or deposit your checks. However, should you decide to avail of the 60-day grace period, please inform us at least 5 working days before your next payment due date so we will have enough time to hold your auto-debit arrangement or post-dated checks.

For Car and Home Loan, here’s a list of frequently asked questions to guide you further:

1. Who are qualified to avail the Grace Period Program 2 (GPP2)?

       Borrowers with existing home and car loans prior to September 15, 2020 may avail the GPP2, provided said loans are in CURRENT status and not past due.

2. Will there be additional fees and charges for those who will avail GPP2?

       There will be no interest on interest, penalties, fees and other charges, BUT interest will continue to accrue in accordance with Sec. 5.02 of the Implementing Rules and Regulations (IRR) issued by the Bangko Sentral ng Pilipinas (BSP).

3. When do I pay for the accrued interest?

       The accrued interest shall be collected together with your monthly amortization on your next due date after the grace period. If you choose to pay the accrued interest on installment, the last payment should be made within the year.

Accrued interest shall be computed as follows

Accrued Interest = Outstanding Balance x interest rate x grace period days/365

4. How will the grace period affect my amortizations in the succeeding months? Will my loan payment be doubled on the following due date?

       No, your loan payment will not be doubled as we will extend the maturity of the loan corresponding to the grace period. However, accrued interest will be collected together with your amortization after the grace period.

Sample scenario 1:
You avail the grace period starting with your September 30 amortization and the original maturity date of your loan is January 30, 2021.

Sept. 30, 2020 – no payment (GPP2)
Oct. 30, 2020 – no payment (GPP2)
Nov. 30, 2020 – monthly amortization + accrued interest
Dec. 30, 2020 – monthly amortization
Jan. 30, 2021 – monthly amortization (original loan maturity date)
Feb. 28, 2021 – monthly amortization
Mar. 30, 2021 – monthly amortization (new maturity date)

Sample scenario 2:
You avail the grace period starting with your October 30 amortization and the original maturity date of your loan is January 30, 2021.

Sept. 30, 2020 – paid
Oct. 30, 2020 – no payment (GPP2)
Nov. 30, 2020 – no payment (GPP2)
Dec. 30, 2020 – monthly amortization + accrued interest
Jan. 30, 2021 – monthly amortization (original loan maturity date)
Feb. 30, 2021– monthly amortization
Mar. 30, 2021– monthly amortization (new loan maturity date)

Sample scenario 3:
You avail the grace period starting with your November 30 amortization and the original maturity date of your loan is January 30, 2021.

Sept.30, 2020 – paid
Oct. 30, 2020 – paid
Nov. 30, 2020 – no payment (GPP2)
Dec. 30, 2020 – no payment (GPP2)
Jan. 30, 2021 – monthly amortization + accrued interest (original loan maturity date)
Feb. 30, 2021– monthly amortization
Mar. 30, 2021– monthly amortization (new loan maturity date)

5. What will happen to my Auto-Debit Arrangement/Post-Dated Checks?

       If you avail the GPP2, your post-dated checks intended for the payment during the grace period will NOT be deposited. Regular posting of post-dated checks will resume on the month following the grace period. All post-dated checks warehoused with us will follow the new deposit schedule.

If you have an auto-debit arrangement and wish to avail the grace period, auto-debit arrangement will be turned off for your account. Regular auto-debit will resume on the month following the grace period.

For example:

You avail the grace period starting with your September 30 amortization and the original maturity date of your loan is January 30, 2021.

6. How do I avail the Grace Period?

       Should you decide to avail of the 60-day grace period, please inform us at least 5 working days before your next payment due date so we will have enough time to hold your auto-debit arrangement or post-dated checks.

You may reach us thru any of the following channels:

       a. Our Customer Service Hotline at 88700-700 or domestic toll free 1-800-1888-5775

       b. You may also coordinate with your branch of account for your request.

7. What happens after I communicate my intention to avail of the Grace Period through one of the available channels (item 6)?

       You will receive an email from us informing you of the amount of accrued interest that you will have to pay and the new maturity date of your loan.

Kindly ensure that the email address you provide to any of our channels is active and accurate.

Governing Regulations for reference:

Click here to view the document on Bayanihan to Recover as One Act Circular RA 11494, BSP Memorandum No. M-2020-068.

Click here to view the document on Implementing Rules and Regulations (IRR) of Section 4(uu) of RA 11494, BSP Memorandum No. M-2020-074.

For the Credit Card grace period:

SKIP PAYMENT PROGRAM: BAYANIHAN TO RECOVER AS ONE ACT (BAYANIHAN 2)

We express our utmost support on the "one-time 60-day grace period to all loans that are existing, current and outstanding, falling due, or any part thereof, on or before December 31, 2020."

Please be informed that we are waiting for the Implementing Rules and Regulations (IRR) from the Bangko Sentral ng Pilipinas to ensure proper interpretation and execution of the law.

We will update and release more information about our Skip Payment Program for qualified credit cards as soon as IRR are released. Thank you and keep safe.