Various South African banks have put measures in place to alleviate some of the financial stress the coronavirus lockdown will undoubtedly bring.
The lockdown has left many without an income, and some may find themselves unemployed, leading to loss of income and an inability to service their debt.
Banking has been declared an essential service and banks will continue to operate during the lockdown.
Most have announced a three-month payment ‘holiday’ for qualifying customers who apply.
This is what five South African banks are offering to help keep customers afloat:
FNB
The bank will help qualifying customers for three months with:
• Instalment cashflow relief, during which part or no instalments/repayments will be due for a specific period.
• A preferential interest rate will apply to the Covid-19 relief interventions given.
• No fees will be charged for any relief granted.
• Assistance with processing credit insurance claims, where possible.
• Individualised bridge facilities for those who need it.
Customers will also be able to get more information on their current relief measures through a dedicated icon on the landing page of their banking app.
Standard Bank
The bank recently gave students and businesses a break but has now extended a three-month payment ‘holiday’ to all qualifying customers.
Those earning R7 500 or less, and who are not in arrears on any of their accounts, will automatically be granted three months’ instalment relief.
Those earning more than R7 500 will be able to qualify for the instalment relief by contacting the bank.
The bank added that the payment holiday was optional and customers could continue to pay their debts if they were able to do so.
Interest would continue to be charged on accounts during this time.
Absa
The bank committed to:
• Relief for consumer, business banking and wealth customers
• Solutions for corporate and business banking clients
• Additional administration fees would be waived
• To allow benefits to reach more customers, those who were able to do so were encouraged to continue making payments.
Eligible customers in need of short-term relief would qualify for the programme which applied to both Absa’s personal and business credit products. Those in good standing with the bank would qualify for a three-month payment relief period, which would allow customers in need of short-term financial relief to reduce their monthly instalments.
Nedbank
All the bank’s customers could apply for the following:
• A rearrangement of the current monthly repayment schedule, which may increase the original loan term.
• A withdrawal from any investment fund with the bank without any penalty charges, up to a maximum of R200 000.
• The minimum repayment on all credit cards has been reduced from 5 per cent to 2.5 per cent.
Capitec
Capitec has advised that it will handle credit stress queries on a case-by-case basis. Clients whose financial situation has been affected by the coronavirus crisis can contact Capitec on 0860 66 77 89.
