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Bangko Sentral ng Pilipinas approves 2-month grace period on loan payments




Bangko Sentral ng Pilipinas (BSP) has recently approved a memorandum that requires all BSP-regulated financial institutions to comply with the 60 days grace period on loans amended under the RA 11494 or the “Bayanihan To Recover As One Act” (Bayanihan 2).

Signed by BSP Governor Benjamin Diokno, the Memorandum No. 068 series of 2020 states that “all loans that are existing, current, outstanding,  existing, current, and outstanding falling due, or any part thereof, on or before December 31, 2020” shall be given a mandatory, one-time 60 days grace period. The memorandum applies to each loan of an individual and businesses with multiple loans.

Banks and financial institutions that are supervised by the agency shall not continue the charging or application of interest on interest, penalties, fees, or either charge during the grace period to future payments or amortization of the loaners. The entities are also prohibited to waive the application of the provisions of the Bayanihan Heal As One Act that provides multiple stimulus packages to various sectors during the pandemic.


The memorandum also removes the validity of any previous waiver which was executed by the borrower to cover payments falling due until December 31, 2020.

Borrowers may also pay the accrued interest for the given one-time grace period on a staggered basis until December 31, 2020. However, it shall not preclude them from paying the accrued interest in full on the new due date.

Lending financial institutions and the borrowers may also agree to a longer grace period recommended by the agency, as well as the staggered payment of accrued interest beyond the end of the year.

Previously, Congress wants to pass a one-year moratorium on debt payments. However, it was opposed by several banking and business groups due to the potential risks it may bring to the country’s economy.

Source: Bangko Sentral ng Pilipinas via Manila Bulletin



Jewel is a Multimedia Producer for YugaTech. She's a caffeinator by day and a cinephile by night.

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5 Responses

  1. Victor T VILLACORTE says:

    I bet the accrued interest still applies. The banks will rake more money again in the guise of helping people when fact they are robbing the borrowers.

  2. Mabel A. Lazarte says:

    Good Afternoon Maam/Sir: Ask ko lang po kasama rin po ba sa 60 days Grace Period or Moratorium yong mga On Line Loans, example po Tala or Pondo Loan? Thanks

  3. armand says:

    ano po ba ang tamang computation ng accrued interest according to bayanihan to heal as one act.bakit po ang south asialink credit corp.ay sobrang gahaman sa pagpapataw ng accrued interest.sa halip na makatulong sa client nila mas lalo pa nilang sinamantala habang nasa pandemic tayo.kasi base sa employee nila na tumawag sakin,pinapipili nila ang client kung mag aavail ba ng grace period or hindi.kasi kapag mag aavail daw ako magkakaroon ng interest na 6% based on original principal at hindi sa outstanding principal.kaya yong sa case ko kapag nag avail ako magkakaroon pa ako ng babayarang interest na Php6,750 per month,so sa 60days magiging 13,500 ang laki po diba compared doon sa penalty lang talaga kapag di ka nakapagbayad on time na 15% of monthly amortization noong wala pang pandemic which is Php4,000+ lang.mas pumabor pa sa south asialink credit corp. ang bayanihan act nayan.

  4. Efren lorico says:

    When po mag start yong wla munang kaltas sa loan mam sir

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