HomeArticles

FAQs and T&Cs: Grace Period Program 2 for Loans and Credit Card under the BARO Act

COVID-19 Advisory

FAQs and T&Cs: Grace Period Program 2 for Loans and Credit Card under the BARO Act

#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.

PDC Date/Auto DebitOriginal ScheduleNew Schedule
30-Sept-2030-Sept-2030-Nov-20
30-Oct-2030-Oct-2030-Dec-20
30-Nov-2030-Nov-2030-Jan-21
30-Dec-2030-Dec-2028-Feb-21
30-Jan-2130-Jan-21 Original Maturity Date30-Mar-21 New Maturity Date

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.