1. What is a “payment moratorium”?
- Payment moratorium provides our client an extended payment arrangement from the original due date of their monthly amortization. This payment extension is in line with the Bayanihan to Heal as One (BAHO) Act (R.A. 11469) and Bayanihan to Recover as One Act (BARO) (R.A. 11494) Act and its implementing rules and regulations
- In addition, it allows our clients to avail a one-time and non-extendible deferment on installment dues that fall throughout a given period:
- For BAHO, if the due date falls between the 17th and the end of the month, three (3) amortizations will be allocated. Otherwise, two (2) amortizations will be allocated
- For BARO, a maximum of two (2) amortizations are applicable, and this is only for loans that are current or not past due
- Starting April 2020, clients with an active EastWest auto loan account booked September 2020 and earlier were advised via SMS and/or email about the payment moratorium
Illustration – the number of installment dues for payment moratorium based on the account’s due date
Payment Moratorium | Installment due period | Number of installment dues for deferment |
| BAHO | From March 17, 2020 up to May 31, 2020 | Three (3) amortizations if the due date falls between the 17th and the end of the month, and two (2) amortizations will be allocated if otherwise. |
| BARO | From September 15, 2020 up to December 31, 2020 | Maximum of two (2) amortizations only |
Illustration – the deferment of due date
Payment Moratorium | Original Due Date | New Due Date |
| BAHO | March 17, 2020 | June 17, 2020 |
| April 17, 2020 | July 17, 2020 | |
| May 17, 2020 | August 17, 2020 | |
| BARO | September 17, 2020 | November 17, 2020 |
| October 17, 2020 | December 17, 2020 |
For an auto loan account with due date of every 17th of the month, the loan term will be extended for five (5) months because of the additional months brought by BAHO and BARO payment moratoriums. However, the number of amortization dues will remain as its original.
Payment Moratorium | Original Due Date | New Due Date |
| BAHO | April 10, 2020 | June 10, 2020 |
| May 10, 2020 | July 10, 2020 | |
| BARO | September 10, 2020 | November 10, 2020 |
| October 10, 2020 | December 10, 2020 |
For an auto loan account with due date of every 10th of the month, the loan term will be extended for four (4) months because of the additional months brought by BAHO and BARO payment moratoriums. However, the number of amortization dues will remain as its original.
For more information about the payment moratorium brought about by the BAHO AND BARO Acts, please call our dedicated hotline at 02 8396-1715.
2. Will I incur any additional fees and charges during the grace period?
- Eligible accounts will not incur any Late Payment Charge (LPC) or interest on interest during this period. However, Accrued Interest will still be charged in accordance with the Implementing Rules and Regulations of BAHO and BARO
- Subject Accrued Interest will be billed to the auto loan account by the end of extended loan term
3. What is an Accrued Interest?
- It is an interest that is due on the outstanding principal loan obligation but not yet paid since the last loan payment made. This is neither LPC nor an interest-on-interest penalty
- Its computation will be based on the outstanding principal balance prior to application of payment moratorium, using the interest rate stipulated in the loan agreement or the Promissory Note Chattel Mortgage (PNCM)
Illustration – Accrued Interest Computation
For an auto loan account with due date of every 17th of the month, an outstanding principal balance of Php400,000 as of March 2020, then Php387,000 as of September 2020 and with 17% Effective Interest Rate (EIR) in the signed PNCM
Bayanihan Act | Outstanding Principal Balance | Effective Interest Rate divided 12 months | Total amortizations with payment moratorium | Accrued Interest | |||
| BAHO | 400,000 | X | 1.42% | x | 3 | = | 17,000 |
| BARO | 387,000 | X | 1.42% | x | 2 | = | 16,448 |
4. Do I need to apply for the payment moratorium?
- The payment moratorium automatically covers the auto loan account of all our clients that are qualified based on the IRR of BAHO and BARO at time
- To know if your account had payment moratorium brought by BAHO and/or BARO, please call our dedicated hotline at 02 8396-1715
5. How much will I pay after the payment moratorium?
- A payment equal to one amortization will be billed to our client’s auto loan account on the due date immediately following the payment moratorium and continued monthly thereafter. This adjustment extended the auto loan’s maturity date due to the additional months added to the loan term.
Illustration – Amount to pay after payment moratorium if with BAHO
For an auto loan account with due date of every 17th of the month, amortization of Php15,000.00 and maturity date of June 17, 2024
One amortization was billed to the auto loan account after the BAHO payment moratorium
The amortization schedule showing the equivalent to one amortization after payment moratorium.
In here, no amortization was due during the BAHO period and only one (1) amortization was billed upon resumption of regular dues.
Previous Amortization Schedule | Amortization Schedule with payment moratorium | |||
| Due Date | Amount | Due Date | Amount | |
| March 17, 2020 | 15,000 | March 17, 2020 | 0 | Amortizations under BAHO |
| April 17, 2020 | 15,000 | April 17, 2020 | 0 | |
| May 17, 2020 | 15,000 | May 17, 2020 | 0 | |
| June 17, 2020 | 15,000 | June 17, 2020 | 15,000 | |
| July 17, 2020 | 15,000 | July 17, 2020 | 15,000 | |
| August 17, 2020 | 15,000 | August 17, 2020 | 15,000 | |
| September 17, 2020 | 15,000 | September 17, 2020 | 15,000 | |
| With continuation… | With continuation… | |||
The amortization schedule showing the effect in the maturity date and loan term.
The maturity date is now September 17, 2024 because of the three amortizations covered by the BAHO effectively moved the original maturity date of June 17, 2024 by three months. In addition, the accrued interest will be billed by end of term.
Previous Amortization Schedule | Amortization Schedule with payment moratorium | |||
| Due Date | Amount | Due Date | Amount | |
| March 17, 2020 | 15,000 | March 17, 2020 | 15,000 | |
| April 17, 2020 | 15,000 | April 17, 2020 | 15,000 | |
| May 17, 2020 | 15,000 | May 17, 2020 | 15,000 | |
| June 17, 2020 | 15,000 | June 17, 2020 | 15,000 | |
| End of Term | July 17, 2020 | 15,000 | Additional Months in Loan Term | |
| August 17, 2020 | 15,000 | |||
| September 17, 2020 | 15,000 + Interest | |||
