While lockdown measures are set to ease following an address by President Cyril Ramaphosa on Wednesday evening, the economic impact created by lockdown will surely still have far reaching effects.
As such, FNB has announced that pre-selected qualifying customers with existing COVID-19 Cashflow Relief Plans will be given the choice to extend relief measures.
This extended relief will give customers a three month extended payment break in the form of a separate credit agreement.
“This will mean that qualifying customers in selected industries of our economy that can demonstrate material income impact as a result of COVID-19 may be offered a 6 months payment break on their repayments through a separate credit agreement. We encourage customers to evaluate their personal circumstance before taking up any offer,” explained FNB.
As with the first relief measures implemented by FNB, customers will need to have honoured their credit agreements with FNB as of the end of February 2020.
Customers who take up an extended payment break will only have to make repayments at the end of the extended break. Repayments are calculated at a prime interest rate and the extension will not penalise customers for settling early. Customers will also have a 60 month repayment term.
“We recognise that some of our customers/industries may feel the impact of COVID-19 longer than others. This may be due to their type of employment, or circumstances such as self-employment, with reduced or no income. It is during these uncertain times that we want to continue to find ways to help our customers when it matters the most,” says chief executive of FNB Retail Raj Makanjee.
“We encourage customers who have multiple products with us to consider a Cashflow Relief Plan which consolidates their instalments to repay separately at the end of the payment break. This could be cost-effective for a customer compared to extending the term on each product, where original interest rates and fees can cause financial strain over the long term,” Makanjee added.