Your Cash! Advisory

Further to the IRR of Republic Act 11494 or the Bayanihan to Recover as One Act of 2020, qualified accounts with monthly amortizations that fell due between September 15 to November 15 (“covered due dates”), where no payments were received on the due date or did not satisfy the Minimum Amount Due were deemed to have availed of the 30/60-day grace period. Debit & credit adjustments were reflected in your account to keep your account in current status. Consequently, monthly amortizations have been deferred/extended corresponding to the availed 30/60 day grace period.

TO ILLUSTRATE:
Monthly Installment Amortization: P10,000
Term of loan = 6 months
Original end of installment term : December 2020
New end of installment term: January or February 2021 (moved by 1 or 2 mos.)

A. If account missed paying on due date/payment did not satisfy amount due for one (1) monthly amortization

NOVEMBER SOA: Debit / Credit Adjustment for monthly amortization falling due October 16, 2020
Payment P0.00
Debit adjustment (2/6) P10,000
Credit adjustment (2/6) (P10,000)
Deferment of monthly amortization 3/6 P0.00

DECEMBER SOA: Resumption of monthly amortization
Payment (P10,000)
Monthly Amortization 3/6 P10,000

B. If account missed paying on due date/payment did not satisfy amount due for two (2) consecutive monthly amortizations.

October SOA: Debit / Credit Adjustment for monthly amortization falling due September 16, 2020
Payment P 0.00
Debit adjustment (2/6) P10,000
Credit adjustment (2/6) (P10,000)
Deferred monthly amortization 3/6 P0.00

November SOA: Debit / Credit Adjustment for monthly amortization falling due October 16, 2020
Payment P 0.00
Deferred monthly amortization 4/6 P0.00

December SOA: Resumption of Monthly amortization
Monthly Amortization 3/6 P10,000

January SOA: Resumption of Monthly amortization
Monthly Amortization 4/6 P10,000

The deferment of the monthly interest amortizations will incur accrued interest. The computation of the Interest Accrual will be based on the interest portion of the monthly amortizations that a) fell due between September 15 to November 15, 2020 and b) were unpaid on due date/did not satisfy amount due, causing the deferment of amortizations.

Coming from the Illustration, the following will be reflected in lump sum amount* in the January/February 2021 Statement of Account:

A. If account missed paying on due date/payment did not satisfy amount due for one (1) monthly amortization
Accrued interest on September amortization 2/6 P500

B. If account missed paying on due date/payment did not satisfy amount due for two (2) consecutive monthly amortizations.
Accrued Interest from September & October : P 950 (P500 + P450)
Where the Accrued Interest is broken down as follows:
Monthly Installment Amortization Interest 2/6: P 500
Monthly Installment Amortization Interest 3/6: P 450

*Lump sum accrued interest above P500 will be posted at 3 months, 0% installment