#Bangko Sentral ng Pilipinas loan grace period

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). 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. 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. Source: Bangko Sentral ng Pilipinas via Manila Bulletin The Bangko Sentral ng Pilipinas' Monetary Board has recently approved the 24% annual interest rate ceiling, or 2% monthly, on all credit card charges. Based on the circular 1098 of Bangko Sentral ng Pilipinas, interest rates or charges on a cardholder's unpaid credit card balance should not exceed 2% per month. “The interest rate cap on credit card receivables aims to ease the financial burden of consumers and micro, small and medium enterprises amid a difficult economic environment caused by the COVID-19 pandemic,” said Bangko Sentral ng Pilipinas Governor Benjamin Diokno. Read more in our articles including "Bangko Sentral ng Pilipinas approves 2-month grace period on loan payments" and "Bangko Sentral ng Pilipinas puts ceiling on credit card charges".