Powered by SA Accounting Academy: SA’s commercial banks have been condemned by many for their tepid response to the Covid-19 crisis, which falls well short of the remedies offered abroad, where payment holidays of up to six months are available.
Be that as it may, these are the measures being offered to individuals and businesses in SA.
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 this is a rapidly changing scene.
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.