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1. What is the Bayanihan to Recover as One Act?

The Bayanihan to Recover as One Act (R.A. 11494) or BARO Act is a law aimed at continuing the various government 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 on or before December 31, 2020, without charging late payment, interest on interest and charges. Consequently, loan maturity may be extended for sixty (60) days.

2. Who are qualified under BARO Act?

Existing loan and credit card accounts that are in CURRENT status (not past due) before September 15, 2020 are qualified to avail of the one-time 60-day grace period.

3. I am in current status and do not intend to avail of the BARO Act grace period, what should I do?

There is no need to advise the bank. Simply continue to settle your dues on or before your due date. If you are under Auto Debit Arrangement (ADA) or Post-Dated Check (PDC), kindly ensure your account is sufficiently funded before your due dates.

4. I am in current status but considering availing of the BARO Act grace period, what should I first be aware of?

Qualified clients will be notified via SMS and email that will be sent to the registered mobile numbers and email addresses with the Bank.

Please note that the BARO Act grace period is one-time starting from the due date concerned plus 60 days.  No interest on interest,  penalties fees and other charges for late payment will be imposed  during the grace period.  Bear in mind also that after the grace period, you will resume paying for your monthly amortization plus the accrued interest resulting from loan outstanding balances having not moved for 60 days.

5. Knowing the implications of availing of the BARO Act grace period, how do I proceed?

You may reply YES PN XXXXXXXXXXXX for Home, Auto, SME and Personal Loans. For Credit Cards, reply YES CC XXXX (last 4 credit card number) to 225678, 5 banking days before your due date. Alternatively, you may just opt to miss two (2) consecutive due dates between September 15 to December 31, 2020 as that would already be considered an automatic availment of the one-time 60-day grace period.

6. Can I request for more than 60 days grace period?

No, under the BARO Act, grace period is limited to one-time 60-day availment for due dates falling from September 15, 2020 until December 31, 2020.

7. Can I still avail of BARO Act if I already availed of Bayanihan to Heal as One Act?

Yes, you may avail of the one-time 60-day grace period under the BARO Act, provided you are qualified, which means that your account is in CURRENT status (not past due) before September 15, 2020.

 

Consumer Loans

1. If I avail of the 60-day grace period, can I pay the accrued interest on staggered basis? What is the maximum term allowed?

Yes, you may pay the accrued interest either in full after the 60-day grace period or on staggered basis up to December 31, 2020.

2. What is Accrued Interest and how is it computed?

Accrued Interest refers to interest that is due on the outstanding principal obligation but has not yet been paid by the borrower since the last loan payment made.

Accrued Interest = (Outstanding Principal Balance x Interest Rate) x (61/365)

*The number of days on accrued interest for the 60-day grace period for payments falling from September 15 to December 31, 2020 is always 61 days counting from the date the last payment was made.

For example, if the last payment was made on September 16 and the borrower wants to avail of the 60-day grace period starting October 16 due date, accrued interest will be computed from September 17 up to November 16, 2020 and this will be collected separately from the monthly amortization falling due on December 16, 2020. For term loans with monthly repayment of principal and interest, the monthly amortization falling due on December 16 will cover interest on the unpaid principal from November 17 to December 16, 2020.

3. I issued Post-Dated Checks (PDCs) to pay for my monthly amortization and I want to avail of the BARO Act 60-day grace period. What should I do?

You may reply YES PN XXXXXXXXXXXX for Home, Auto, SME and Personal Loans to 225678, 5 banking days before your due date. Payment for the accrued interest covering the 60-day grace period must be paid on or before December 31, 2020 at any BDO branch nationwide or through BDO Digital Banking channels.

4. My mode of payment is via Post-Dated Checks (PDCs) but I failed to inform the Bank five (5) banking days before my due date that I will avail of the one-time 60-day grace period under the BARO Act. When will the Bank implement my request?

The Bank will need five (5) banking days to put into effect the retrieval and hold processing of PDCs. Hence, the Bank will only be able to implement your request on the succeeding due date.

For example: If your due date falls on October 18 but you informed us that you want to avail on October 15, 2020, your PDC will still be deposited by October 18. Your grace period availment will be implemented on the next due date of November 18, wherein your PDC for November 18 will be deposited by January 18, 2021, your December 18, 2020 PDC will be deposited by February 18, 2021.

5. Specific to SME Ready Check, what amounts will be due after the 60-day grace period?

Only the interest will be due on the outstanding principal balance of the facility. The same shall apply for lines whose expiry falls during the 60-day grace period provided the 20% principal paydown is complied. However, if you have not yet complied with the 20% principal paydown, this will be due along with the interest on the outstanding principal balance of the facility.

 

Credit Cards

1. If I have more than one (1) BDO Credit Card, will the BARO Act 60-day grace period apply to all?

Yes, as long as all your cards are in CURRENT status (not past due) before September 15, 2020.  Eligibility will be evaluated on a per card basis.

2. I fully paid my outstanding balance in my September Statement of Account. Can I still avail of the BARO Act one-time 60-day grace period for my succeeding due dates/purchases from October to December 2020?

The BARO Act grace period is only applicable to transactions made on or before September 15, 2020. Transactions made after September 15, 2020 will no longer be covered.

3. I am enrolled to Automatic Debit Arrangement (ADA), how will the BARO Act affect my payments?

You can either HOLD or PROCEED with your ADA scheduled payments. Kindly signify your intention to avail of the 60-day grace period by replying YES CC XXXX (last 4 digits of your credit card) to 225678, 5 banking days before your due date. If availed, please ensure your bank account is sufficiently funded to cover your balances at the end of the grace period.

4. Will payment for my statement balance be deferred?

No, your statement balance will not be deferred. You will only be given a 60-day extension period to settle your balance.

5. For my credit card installment transactions, will the maturity of my transaction be deferred?

No, the maturity of your installment transaction will not be deferred. Your monthly amortization will continue to be billed every statement cycle date.

6. Does this mean that by the end of the grace period, my balance would have accumulated from my previous unpaid Statement of Account?

Yes, your balance will accumulate and will be reflected as the outstanding balance on your Statement of Account after the grace period.

7. What Fees and Charges will be waived for qualified cardholders who will avail of the BARO Act grace period?

For qualified cardholders who FULLY PAID the Total Amount Due in full or on time on their due date prior to September 15, 2020 (Transactors), Finance Charges (FC) and Late Payment Fees will be REVERSED upon receipt of your full payment at the end of the 60-day grace period.

For qualified cardholders who PAID LESS than the Total Amount Due on their due date prior to September 15, 2020 (Revolvers), Late Payment Fees and  Interest on Interest (which is the interest charged on your latest Finance Charge) will be REVERSED on your succeeding Statements of Account.

 

Computation of Late Payment Fees and Interest on Interest will be as follows:
Applicable Finance Charge Rate X Finance Charge reflected on your previous statement

8. If I avail of the BARO ACT grace period, can I still continue to use my credit card?

Yes, qualified cardholders who availed of the BARO Act grace period can continue to use their BDO Credit Card up to the available Credit Limit of the account.

9. If I avail of the BARO Act grace period but decided to pay during the grace period, will my payments be accepted?

Yes, your payments during the grace period will be accepted and posted on your account.