Coronavirus: Standard Bank gives businesses, students a debt holiday
- Standard Bank is giving all of its business clients with a turnover of less than R20 million per year a debt repayment holiday of three months.
- They don't have to pay debt instalments until end-June, but interest and fees will still accrue during this time.
- Businesses don't need to apply for the holiday - they will get it automatically if they are not behind on payments and "in good standing" with the bank.
- Students are also getting an automatic three-month repayment holiday, and no interest or fees will accrue during this time.
- For more stories, go to the Business Insider home page.
Standard Bank is giving all of its business clients with a turnover of less than R20 million a year (and are up to date with their credit payments) as well as students, a debt repayment holiday from 1 April to end-June.
Under the terms of Standard Bank’s Coronavirus Business Interruption Payment Scheme, they won’t have to pay debt instalments for the next three months.
Businesses don’t need to apply for the debt repayment holiday – it will automatically apply to all clients with a turnover of less than R20 million per year, who are up to date with their payments as at the end of March 2020 and are in good standing with Standard Bank. Businesses which want to opt out of the arrangement need to contact the bank.
The debt payments will be deferred for 90 days, but the interest and fees accrued over this period will be capitalised on clients’ lending accounts. After the 90-day period is complete the new repayment will become due.
All student loan customers who are studying full time will also get an automatic repayment holiday from 1 April to 30 June. No interest or fees will be accrued during the repayment holiday.
The coronavirus crisis is expected to have a harsh impact on domestic businesses, which are facing the fall-out of emergency measures including the cancellation of public events, the closure of public spaces and restrictions on travel and trade. According to the Reserve Bank’s forecast this week, the domestic economy will shrink by 0.2% this year, while some economists believing that this may be too optimistic.
“Besides the payment holiday where your repayments will be deferred for an agreed period, we can also assist with restructuring and consolidation of your debts,” Standard Bank says on its website.
Receive a daily update on your cellphone with all our latest news: click here.
Also from Business Insider South Africa:
- Obituary | Sol Kerzner, a perfectionist with a short fuse
- Covid-19 update: SA cases jump to 240 - up by 38 in one day
- Does UV light kill germs? Getting an at-home sanitiser may be worth it
- SpaceX VP reportedly cites Elon Musk’s ‘coronavirus panic is dumb’ tweet to concerned employees
- Covid-19: A US man used a drone to walk his dog while he was in lockdown
- Use of shopping trolley wipes rockets 500% - please take only one at a time, begs supplier