In compliance with the Bayanihan to Recover as One Act (Bayanihan 2), all CBS auto, home, personal, salary, SME and SmallBiz loans in current status with amortizations falling due on or before December 31, 2020 are eligible for a one-time 60-day grace period. Below is the CBS quick guide to making your loan payments under Bayanihan 2:
Bayanihan to Recover as One Act (Bayanihan 2)
1. What is the Bayanihan to Recover as One Act?
The Bayanihan to Recover Act (R.A. 11494) or BARO Act is a law aimed at continuing the various programs to deal with and help the country recover from the COVID-19 crisis. Included in the law is the relief on loans which direct banks to provide a one-time 60-day grace period for qualified loans falling due from September 15, 2020 to December 31, 2020, without charging late payment, interest on interest and charges. Accordingly, loan maturity may be extended for sixty (60) days.
2. Who are qualified under Bayanihan 2?
Existing CBS auto, home, personal, salary, SME and SmallBiz loan accounts that are in CURRENT status (not past due) as of September 14, 2020 are eligible for a one-time 60-day grace period within September 15, 2020 to December 31, 2020.
3. Are borrowers required to apply for the mandatory grace period?
No need to apply. The grace period is automatically applied to all loan accounts that are in current status (not past due) as of September 14, 2020. If you decide NOT to avail, you need to notify CBS by sending an email to email@example.com.
4. My loan is in current status and do not intend to avail of the Bayanihan 2 grace period, what should I do?
If you decide NOT to avail, pay on your original amortization schedule. No additional accrued interest will be charged. But you need to notify CBS by email: firstname.lastname@example.org. If you are under Auto Debit Arrangement (ADA) or Post Dated Check (PDCS), kindly ensure your account is sufficiently funded before your loan due date.
5. If I have more than one (1) CBS loan, will the Bayanihan 2 one-time 60-day grace period apply to all?
Yes, provided all your loans are in CURRENT status (not past due) as of September 14, 2020. Eligibility will be evaluated on a per loan account basis.
6. My loan is in current status but considering availing of the Bayanihan 2 grace period, what should I first be aware of?
The Bayanihan 2 grace period is one-time starting from the due date plus 60 days. No interest on interest, penalties fees and other charges for late payment will be imposed during the grace period.
If you avail of the grace period, the term of your loan will be extended by 2 months. You should continue paying regular amortization when your grace period expires.
Additional accrued interest shall be charged, also as prescribed by the law, and is payable in full or staggered basis until December 31, 2020.
7. Will there be accrued interests that will be incurred with availing the 60-day grace period? If there is, then how much will the accrued interest be?
Yes, there will be accrued interest for the 60-day grace period.
The accrued interest shall be computed based from the outstanding principal balance as of the last payment. Please see sample below. Kindly note that sample computation is applicable to Consumer Loans only.
Assuming below is your Regular Loan Payment Schedule:
If you will NOT avail the Bayanihan 2, regular monthly amortization of P56,347.52 should be paid on or before your due date
Sample computation if you WILL AVAIL of Bayanihan 2:
Accrued interest for the 60-day grace period (09/23/2020 and 10/23/2020) will be computed as follows:
If you will AVAIL the Bayanihan 2, accrued interest will be charged
The accrued interest is computed based on your loan's outstanding principal balance as of 08.23.2020 (last payment) which is P7,181,229.21 x the current interest rate x 30days/360. Thus, total accrued interest for 09.23.2020 and 10.23.2020 due date which will be covered by the 60-day grace period is P 77,796.64.
8. If I avail of the 60-day grace period, can I pay the accrued interest on staggered basis?
Yes, you may pay the accrued interest either in full after the 60-day grace period or staggered basis until December 31, 2020.
9. Can I still avail of Bayanihan 2 if I already availed of Bayanihan to Heal as One Act (Bayanihan 1)?
Yes, you may avail of the one-time 60-day grace period under the BARO Act (Bayanihan 2), provided you are qualified, which means that your loan account is in CURRENT status (not past due) as of September 14, 2020.
10. When are we going to pay the amortization during the grace period?
Clients who availed of the one-time 60-day grace period would only need to pay the amortization that is due after the 60-day grace period. Please see sample below:
If your due date is on September 23, 2020 and CBS did not receive payment for this due amortization, then your account will be enrolled to the 60-day grace period and your loan maturity date will be extended by 2 months. You will resume paying your regular monthly amortization starting November 23, 2020.
11. Will the maturity date of my loan change because of the mandatory 60-day grace period?
Yes, your loan maturity date will be extended by 2 months.
12. Can borrowers opt to pay the amortizations following the regular schedule despite of the mandatory grace period?
Yes. Borrowers may opt out of the 60-day grace period. Client would need to notify CBS regarding this by sending an email to email@example.com or by submitting a letter to any CBS Branch on or before October 15, 2020. If no notice was received before this date, we will automatically enroll the loan account to avail of the 60-day grace period on your next 2 due dates after October 15, 2020.
13. If I pay my amortizations through Post-dated Checks (PDC), what will happen to the checks that were covered by the 60-day grace period?
The checks that were dated within the 60-day grace period will no longer be negotiated. You are required to submit new checks that will be dated with the 2 extended months from your loan maturity date.
14. What happens if I'm on AutoDebit Arrangement (ADA) and I would avail of the 60-day grace period?
We will implement the 60-day grace period to your next amortization after October 15, 2020.