Australian Banking Association

Announcement today 30 March 2020

www.ausbanking.org.au

Highlights

• Defer loan repayments for 6 months
  • COVID-19 impacted businesses
  • Loan facilities of < $10m
  • Online process
• Individual Circumstances considered
• Waiving fees and charges
• Interest free periods or no interest rate increases
• Debt consolidation
• Includes sole traders

Different bank programs

• Deferral of repayments (new and existing loans)
• Govt supported loans, overdrafts with no repayments for 6 months at low interest rate (this is the Government announced 50/50 SME Loan guarantee)

How

• Contact your bank  Contact details at the bottom of this webpage
• “Customers will self-assess whether their bank has been adversely impacted, no further verification will be required”  quote from the ABA website

Issues

• It may affect your credit rating (but this is being re-negotiated)
• Unless Interest is also waived then the debt is increasing

Landlords

• Can obtain access to these concessions as long as you provide an undertaking that you will not terminate leases or evict tenants (see ABA website)

Resources

All bank website and resources are listed and connected through the ABA Webpage

This page as a handout

• Updated: 30 March 2020