PSSLAI is providing meaningful assistance to valued customers to help ease financial worries during these difficult times. In order to maximize the assistance available to you, specifically the grace period for loan payments, please be guided by the following:

1.        What institutions are covered by the Bayanihan Act?

                      All BSP-covered Financial Institutions established in the Philippines. PSSLAI is a BSP-covered Financial Institution. 

2.        What loans are covered by the grace-period provided under the Bayanihan Act?

                      All loans are covered by the mandatory 30-day grace period. Borrowers may still choose to pay their obligations as they fall due during the ECQ period.

3.         Does the mandatory grace period cover past due accounts?

                      Yes, all accounts are covered whether current or past due.

FOR BACK TO BACK LOAN, HOUSING LOAN, CAR LOAN AND OTHER OVER THE COUNTER MODE OF PAYMENT LOANS: 

1.           For those with loans covered by post-dated checks (PDC), auto-debit or auto-deduct arrangements, are they qualified to avail of the mandatory grace period under ECQ and MECQ?

                       Yes, they are covered by the grace period. You have the option to proceed with the payment despite the mandatory grace period by the law. 

2.          When will the 30-day grace period commence? Will it be from the due date or from the end of the ECQ/MECQ?

                       The 30-day grace period shall commence from the payment due date falling within the ECQ/MECQ period

3.          Will the principal amount payable within the grace period be added to the principal amount due on the next payment due date or will the final due date of the entire loan move by 30days?

                       No, the loan amortization will not be added to the next payment due date and the loan maturity shall be extended for the same number of days corresponding to the grace period. 

                       There will be no penalties and interest on interest to be charged for loan amortization with due dates which will fall from March 17 to May 31, 2020. 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.

                       According to BSP Memorandum Circular No. M-2020-018, accrued interest for the months of April and May should still be collected. However, to ease the  burden of PSSLAI members during these trying times, PSSLAI Board of Trustees decided to waive the accrued interests for all amortizations due from March 16 to May 31, 2020. Instead, your loan term shall only be extended by the same number of months without collection.

4.            For accounts which have become past due prior to the ECQ/MECQ, how will the interest and penalties be calculated?

                         The interest and penalty will be computed excluding the days falling within the ECQ/  MECQ period.

                                     Illustration:

                                     Due date: March 11, 2020 (ECQ started on March 17)

                                     If borrower will pay on May 16:

                                     Number of days default: 5 days + 1 day.

                                     Penalty shall only be computed for 6 days only (the days falling within the ECQ period will not be counted for purposes of imposing penalties).

5.            How will the extension of the ECQ period affect the 30-day mandatory grace period provided under the Bayanihan Act?

                         The IRR provides that the initial 30-day grace period shall automatically be extended if the ECQ period is extended by the President of the Republic of the Philippines. The ECQ period, as of date, has been in effect until 31 May 2020. This means that an additional 30-day grace period for loan accounts qualified for an initial 30-day grace period shall also be granted grace period for the same number of days as the extension period without incurring interest on interest, penalties, fees and other charges.

6.            Does the mandatory grace period in the Bayanihan Act apply only to loans extended by offices operating in areas under ECQ/MECQ?

                          No, the grace period is mandatory and shall be implemented by all covered institutions regardless of place of operation. 

7.            How will the implementation of MECQ in selected parts of the country affect the application of the mandatory grace period for the payment of all loans provided under the Bayanihan Act?

                         The MECQ shall have the same effect as the ECQ with respect to the application of the mandatory grace period for the payment of all loans falling due within the MECQ. 

8.          How will the classification of the National Capital Region (NCR) under General Community Quarantine (GCQ) and certain parts of the country under Enhanced Community Quarantine (ECQ)/Modified ECQ effective 1 June 2020 affect the application of the mandatory grace period provided under the Bayanihan Act?

                    The 30-day grace period under the Bayanihan Act shall no longer apply effective 01 June 2020.

                    Per BSP M-2020-045, “[t]he termination of the grant of the 30-day grace period for the payment of loans with maturity dates on or subsequent to 01 June 2020 is premised on the lifting of the restrictions on economic activities in majority of the provinces and cities in the country. With the lifting of ECQ in majority of the provinces and cities, the condition for the grant of the 30-day grace period under Sec. 4(aa) of Republic Act No.11469 is no longer present.”

FOR THOSE WITH LOANS SUBJECT TO SALARY DEDUCTION ARRANGEMENT WITH PNP, BFP, BJMP, PPSC, AND NAPOLCOM:

1.              Are they entitled to the mandatory grace period?

                          Yes, they are entitled to the grace period. They have the option to proceed with the payment despite the mandatory grace period by the law. For the month of April and May, there will be no collection of the month amortization, instead, the term shall be extended by another two months.  

                         According to BSP Memorandum Circular No. M-2020-018, accrued interest for the months of April and May should still be collected. However, to ease the  burden of PSSLAI members during these trying times, PSSLAI Board of Trustees decided to waive the accrued interests for all amortizations due from March 16 to May 31, 2020. Instead, your loan term shall only be extended by the same number of months without collection.

During these difficult times, we are glad to assist you in your financial needs and help to ease your burden in this ongoing World Health Crisis. We pray for everyone’s safety.