Landbank grants 60-day grace period on loan, credit card payments

State-run lender Land Bank of the Philippines is granting a 60-day grace period on the payment of loans and credit card expenses in a bid to ease the burden of borrowers amid the COVID-19 pandemic.

In a statement, Landbank said it is providing a two-month moratorium for existing, current, and outstanding loans falling due from September 15 until December 31, 2020, “without incurring interest on interests, penalties, fees, or other charges.”

The move is pursuant to the implementation of Republic Act No. 11494 or the Bayanihan to Recover as One Act.

Credit card transactions made, including fees or charges incurred, prior to September 15 shall also be covered by the moratorium, according to Landbank.

For credit card payments, any unpaid balance from transactions and fees or charges shall not incur interest or finance charges during the mandatory grace period, it said.

The Landbank, however, said that after the end of the applicable grace period, the said unpaid balance shall incur interest or finance charges if not paid in full on a new due date.

“Landbank understands how providing loan relief can significantly support our clients during these difficult times. We look to ease their financial concerns as we continue navigating the challenges of this pandemic,” Landbank president and CEO Cecilia Borromeo said.

The state-run lender said it will apply the 60-day grace period automatically, without the need for borrowers and credit card holders to apply or request for the relief measure.

For Landbank credit cardholders with Automatic Debit Arrangements (ADA) for payments, they must inform the bank that they would like to avail of the relief.

The grace period shall commence from the payment due date of loans, with principal and/or interest, including amortizations, falling due from September 15 until December 31, 2020, according to the bank.

The state lender noted that credit card transactions made on and after September 15 are no longer covered by the Bayanihan 2 Act and shall continue to incur interest or finance charges if not fully paid on or before its original due date

The Landbank previously granted a similar grace period for loan payments falling due from March 18 to June 30, 2020, in support of Republic Act No. 11469 or the Bayanihan to Heal as One Act.

Loan accounts that benefited from this grace period will also benefit from the Bayanihan 2 if it remains an existing, current, and outstanding loan as of September 15, 2020.

Meanwhile, fund transfer fees are still waived for InstaPay and PESONet transactions until December 31, 2020. — Ted Cordero/RSJ, GMA News