COMMERCIAL BANKS JOIN THE FRAY
The South African commercial banks have announced a number of measures aimed at assisting business and individuals who may suffer financial difficulties as a result of the Covid-19 lockdown.
A summary of the interventions available from the major banks is provided below:
• Loan interruption scheme which suspends payments for all loans of a business, held by Standard Bank, provided that the business is in good standing, has a turnover of less than R20 million annually and all payments are up to date.
• Installment relief available for individuals with a credit card, personal loan, vehicle finance and/or home loan, who have a Standard Bank business current account and has a business in good standing with a turnover of less than R20 million annually.
• Installment relief on credit cards, home loans, personal loans, revolving credit and/or vehicle finance for individuals earning less than R7500 per month.
Please note that Standard Bank will implement its measures automatically with effect from 1 April 2020.
Standard Bank customers should contact Standard Bank business banking should they wish to opt out of this arrangement.
• NEDBANK will review your current loan repayment commitments, upon request, in order to identify the most appropriate individual solution.
• ABSA will provide liquidity relief for all eligible customers, upon request, for a period of three months. This includes reduction in payments or a payment holiday.
• FNB will provide payment relief for all eligible customers, upon request, for a period of three months. This includes reduction in payments or a payment holiday.
Please note that other Commercial banks may have implemented similar measures but we are not aware of such at time of publication.
Business and individuals alike are advised to utilise these measures with caution, and only if necessary, as payment holidays will have a compounding interest effect, effectively increasing debt.
We will update members should any further information become available.
We are all in this together.
Privileged and challenged to be South African.