The 30-days Grace Period for Loans During Covid-19 Pandemic Ends on May 31, 2020

           Creditors were mandated to give debtors a 30-days mandatory grace period for loans that fall due during the enhanced community quarantine as so declared by Section 4(aa) of the Republic Act No. 11469, otherwise known as the Bayanihan to Health As One Act. This is premised under the economic restrictions imposed by placing the Philippines under community quarantine due to the Covid-19 pandemic.

          Unfortunately, the 30-days grace period for loans will no longer apply effective June 1, 2020.

          The Bangko Sentral Ng Pilipinas issued Memorandum No. M-2020-045 for the guidelines. It provides that all principals and interests that fall due on or before May 31, 2020 are still covered by the 30-days grace period. All debts, the principal and interest alike, incurred effective June 1, 2020, will no longer be entitled to the 30-days grace period and thus will be due and demandable on their due dates. 

          The lifting of the 30-days grace period for loans was affected by the classification of the National Capital Region to be under General Community Quarantine and other parts of the country under Modified Enhanced Community Quarantine by the IATF.