PRESS RELEASE: Increase in customers who require extended payment break
JOHANNESBURG, South Africa – 18th JUNE 2019, –/ Centre for African Journalists (CAJ News ) – IN March this year, FNB announced Cashflow Relief measures which offer customers a 3-month payment break through a separate credit agreement and assistance with credit insurance claims where relevant. The relief measures have been available from 1 April.
As at 15 June, nearly 300 000 individual customers were offered payment breaks through a separate credit agreement worth approximately R5 billion. The payment breaks through a separate credit agreement are offered at prime interest rates with 60 months repayment term and no penalty fees on early settlements.
In addition, the Bank expects to approve approximately R150m worth of credit life insurance claims by end of June 2020, which is R50m more than its initial projection.
FNB will now be offering pre-selected qualifying customers with existing COVID-19 Cashflow Relief Plans an opportunity to extend the payment breaks with a separate credit agreement by up to 3 months.
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.
The offer brings flexibility and real savings to customers on the cost of their credit in the long term and is specifically designed to help customers minimise the impact of COVID-19 on their finances.
Chief Executive of FNB Retail, Raj Makanjee says, “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.”
The extended relief measures are available to customers who honoured their credit agreements with the Bank as at end of February 2020.The relief options available are as follows:
1. Extended payment break with a separate credit agreement at prime interest rate
COVID-19 Cashflow Relief Plan Extension
· You are offered to extend your current payment break by up to 3 months;
· Your repayments only start at the end of the extended payment break;
You get prime interest rates, zero or no penalty fees for settling early and a 60 months repayment term.
2. Alternatively, 3-month payment break with extended repayment term on a single product
· You get a 3-month payment break by extending your current repayment term on a credit product;
· No separate credit agreement is required, and the original interest rate on the credit product applies;
· You will only resume with instalments at the end of your payment break on the product;
· Interest and fees are not suspended during the payment break.
“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. In addition, customers are always encouraged to fully understand the options provided to them in light of their financial situation and only then decide whether or not to proceed.
Those who have a single product with us, such as vehicle finance via WesBank, can always opt to extend their term to repay over a longer period. This option also offers a payment break. We are pleased to be offering relief to primary-banked customers on a range of products including select FNB Connect packages and insurance products.
From 1 July, our individual customers will also have more ways to earn eBucks and enjoy a zero increase or a reduced monthly account fee. We are committed to providing cost-effective relief to cater for the money management needs of customers,” concludes Makanjee.
Distributed by Centre for African Journalists (CAJ News) on behalf of FNB
For more information, contact:
FNB Corporate Affairs
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