AS the economic and health crises linger, local banks are offering relief to debtors by extending the deadline of payments.
BPI Direct BanKo Inc. said its clients can avail of the term extension program to reschedule their amortization payments based on their current cash flow.
In addition, the bank is offering a loan rehabilitation fund program to extend new financing to existing borrowers who need another loan to support their business.
BanKo noted that around 62 percent of its clients had to halt their operations temporarily for more than two months following the announcement of a lockdown in March. As mobility restrictions ease, the bank observed that these micro-entrepreneurs are having concerns over lack of working capital and restricted supply sources as they reopen their businesses.
“Our clients need our support now more than ever,” BanKo Head of Financial Inclusion and Microfinance Loans Rod Mabiasen Jr. said. “As their partner, we are here to help them revive their businesses for the sake of their families amid these trying times.”
The microfinance subsidiary of the Bank of the Philippines Islands (BPI) said that over 4,600 clients have extended their loan terms and more than 800 clients availed of the rehabilitation fund as of end-August.
BanKo said that its clients can also monitor their loans, send payments and check their balance through their online banking platforms.
Our micro-entrepreneurs should continue to innovate and explore other digital alternatives to widen their reach,” Mabiasen said. “They are also free to get in touch with us so we can explore ways to support them through the new loan programs that we have for them.”
East West Banking Corp., meanwhile, said in an advisory that it would be offering a 60-day debt moratorium for loan payments falling due on or before December 31, 2020, following the enactment of a law granting additional authority to President Duterte.
“As also prescribed by the law, please be advised that accrued interest for the duration of the payment extension will be charged,” the listed bank said.
EastWest said that clients who will settle their obligations as originally scheduled will not incur additional accrued interest.