Standard Bank grants over R1 billion instalment relief to 150 000 clients amid Coronavirus outbreak
Standard Bank announced that it has granted relief to nearly 150 000 South African clients in need of financial support due to the national lockdown amounting to more than R1 billion in instalment relief per month on the R44bn of total loans affected.
The bank also noted that it is also committed to assisting small, micro- and medium-sized enterprises and that it welcomed the announcement of the Covid-19 Term Loan Scheme for SMMEs by President Cyril Ramaphosa.
It believes that the R200 billion scheme brings much needed and a welcome relief to businesses that have been adversely affected by the Covid-19.
The lender said it was in consultation with the government on the implementation of the scheme and would be ready to receive applications as soon as all industry parties had concluded engagements and signing arrangements. “The application form will be made available on our Covid-19 website.”
How the COVID-19 Term Loan scheme will work
Business customers with an annual turnover of less than R300m will be able to apply for a Covid-19 Term Loan.
A business must also be:
- In good standing as at 29 February 2020 with their Bank
- Registered with the South African Revenue Services
- Have no existing capacity to borrow
- Negatively impacted by the COVID-19 lockdown and the resultant slowdown in the economy
- Funds borrowed through the scheme can be used for business operational expenses such as salaries, rent, lease agreements and contracts with suppliers. Loans will cover up to three months of operational costs.
In addition to the above scheme, and in response to Covid-19, Standard Bank said that business clients with a turnover of less than R20 million per annum have been automatically offered instalment relief via a three month payment holiday.
All business clients have been offered a range of relief measures, on an opt-in basis, ranging from payment holidays, instalment reduction, debt consolidation, interest rate reduction to ex gratia insurance payment for lost income.
Written by: Staff Writer.