Advisory: Systems Maintenance from September 18 to September 19, 2020. Read more

Advisory: Payment Relief/Reprieve on Your Auto or Housing Loan


For BPI Auto / Housing Loan clients whose incomes had been affected by the pandemic, and are in need of additional relief on their loan payments, here are 4 sample payment options that may help you manage your existing loan obligations:


Original Loan Details (Sample)

Due Date

Monthly Due

Principal

Interest

Outstanding Balance

November 10, 2020




Php 419,000

December 10, 2020

Php 37,000

Php 34,000

Php 3,000

Php 385,000

January 10, 2021

Php 37,000

Php 34,000

Php 3,000

Php 351,000

February 10, 2021

Php 37,000

Php 34,000

Php 3,000

Php 317,000

March 10, 2021

Php 37,000

Php 35,000

Php 2,000

Php 282,000

April 10, 2021

Php 37,000

Php 35,000

Php 2,000

Php 247,000

May 10, 2021

Php 37,000

Php 35,000

Php 2,000

Php 212,000

June 10, 2021

Php 37,000

Php 35,000

Php 2,000

Php 177,000

July 10, 2021

Php 37,000

Php 35,000

Php 2,000

Php 142,000

August 10, 2021

Php 37,000

Php 35,000

Php 2,000

Php 107,000

September 10, 2021

Php 37,000

Php 35,000

Php 2,000

Php 72,000

October 10, 2021

Php 37,000

Php 36,000

Php 1,000

Php 36,000

November 10, 2021

Php 37,000

Php 36,000

Php 1,000

Php 0


1. Pay-Break (Grace Period)

  • A loan pay-break, or more commonly known as a grace period, is a temporary suspension of payment collection for specific amortization due dates.
  • Your original loan term (maturity date) will remain the same but your monthly amortization after the pay-break will increase to allow you to catch-up with the missed payments during the pay-break.
  • The principal loan balance shall continue to earn accrued interest, and your first monthly amortization after the pay-break will be first applied towards the accrued interest which had accumulated over the grace period.
  • During a grace period, no late penalty fees or interest-on-interest will be charged, while the unpaid loan principal shall continue to accrue interest.


Example:

Due Date

Monthly Due

Principal

Interest

Outstanding Balance

November 10, 2020




Php 419,000

December 10, 2020

-

Php 34,000

Php 3,000

Php 419,000

January 10, 2021

-

Php 34,000

Php 3,000

Php 419,000

February 10, 2021

-

Php 34,000

Php 3,000

Php 419,000

March 10, 2021

-

Php 35,000

Php 2,000

Php 419,000

April 10, 2021

-

Php 35,000

Php 2,000

Php 419,000

May 10, 2021

-

Php 35,000

Php 2,000

Php 419,000

June 10, 2021

Php 75,000

Php 57,000

Php 18,000

Php 362,000

July 10, 2021

Php 75,000

Php 71,000

Php 4,000

Php 291,000

August 10, 2021

Php 75,000

Php 72,000

Php 3,000

Php 219,000

September 10, 2021

Php 75,000

Php 72,000

Php 3,000

Php 147,000

October 10, 2021

Php 75,000

Php 73,000

Php 2,000

Php 74,000

November 10, 2021

Php 75,000

Php 74,000

Php 1,000

Php 0


In this example, the requested pay-break period is 6 months. From December 10, 2020 to May 10, 2021, there’s no payment collection
Php 18,000 Interest = The succeeding monthly amortization (Ex: June 10, 2021) includes the total interest accrued during the pay-break.
Php 75,000 Monthly Due = After the pay-break, the amount of monthly amortization is expected to increase. (Ex: From Php 35,000 to Php 75,000 until the end of the loan term)


2. Term Extension

  • Your original loan term (maturity date) will be extended and moved to a later date. As a result, the amount of your monthly loan amortization will be re-computed and re-distributed using the new loan term.
  • Under a term extension, you will have lower monthly installment amounts versus your original monthly amortization due. Payment collection every month shall proceed, without breaks or grace period.
  • Due to the amendments made, payment for Documentary Stamp Tax shall be collected from the client.


Example:


Original

After Term Extension

Loan Term

10 Years

11 Years

Remaining Months to Pay

12 Months

24 Months

Loan Maturity Date

November 10, 2021

November 10, 2022 + 12 months due to term extension

Monthly Due

Php 37,000

Php 20,000 Lower monthly amortization

Est. Docs Stamps to be Paid

-

Php 3,143


3. Pay-Break + Term Extension

  • Under this option, both pay-break and term extension shall be applied on your loan. As a result, payment collection on specific due date/s shall be temporarily suspended.
  • Once the pay-break ends, your original loan term shall be moved to a later date, and your re-computed monthly installment shall be the basis for payment collection.
  • Due to the amendments made, payment for Documentary Stamp Tax shall be collected from the client.


4. Short-term Interest-Payments Only

  • Another option that may help augment your cash flow is to allot payments on the loan’s interest portion only, within a specific and finite period.
  • After the interest-payment-only period, you have an option to: 1) keep your original loan term (where your monthly amortization will increase to allow you to catch-up with the missed principal payments during the interest-payment only period), or, 2) extend your term (where your monthly installment will be re-computed, subject to Documentary Stamp Tax).


Example:

Due Date

Monthly Due

Principal

Interest

Outstanding Balance

November 10, 2020

Php 37,000



Php 419,000

December 10, 2020

Php 4,000

Php 34,000

Php 4,000

Php 419,000

January 10, 2021

Php 4,000

Php 34,000

Php 4,000

Php 419,000

February 10, 2021

Php 4,000

Php 34,000

Php 4,000

Php 419,000

March 10, 2021

Php 4,000

Php 35,000

Php 4,000

Php 419,000

April 10, 2021

Php 4,000

Php 35,000

Php 4,000

Php 419,000

May 10, 2021

Php 4,000

Php 35,000

Php 4,000

Php 419,000

June 10, 2021

Php 37,000

Php 34,000

Php 3,000

Php 385,000

Loan Maturity Date: Adjusted from November 10, 2021 to May 10, 2021

Php 4,000 Monthly Due = In this example, the requested interest only period is 6-months. From December 10, 2020 to May 10, 2021, only the interest portion of the loan (e.g. Php 4,000) is collected

Php 37,000 Monthly Due = After the 6-month period, your original monthly due (e.g. Php 37,000) will resume. Additionally, a term extension (from 12 remaining months to pay to 18 remaining months to pay) has been applied to the loan.


Terms & Conditions


1. All requests are subject to the evaluation and approval of the Bank.


2. Evaluation shall only begin upon submission of complete initial requirements, which include valid IDs, income documents based on source of income, and Special Power of Attorney (if submitting a request on behalf of the borrower).


3. During the evaluation, the Bank may ask for additional documents / requirements apart from what borrowers have previously submitted.


4. Borrowers are strongly advised to continue paying the original monthly dues while the request is being processed to avoid incurring additional charges and penalties.


5. Upon approval, borrowers shall sign a Conforme Letter and/or other pertinent documents in any BPI branch or using an electronic online signing platform deemed appropriate by and acceptable to the Bank. 


6. Payment of appraisal fee, notarial fee and Documentary Stamp Taxes and other Bank charges shall be required as applicable.


How to request for Loan Relief


1. Go to our Online Loan Relief Inquiry Form and provide all the requested information.

2. In the Loan Relief Scheme field, please choose your preferred option: Pay-break, Term Extension, Pay-break + Term Extension, or Short-term Interest-Payments-Only


3. After clicking "Submit", you will immediately receive an auto-generated e-mail from bpiloans@bpi.com.ph. This contains your agreement to the Terms & Conditions of the Loan Relief Scheme.


4. All submitted requests will be reviewed by our credit officers.


5. We will contact you to confirm your preferred date and time to receive our call.