Today, our guide will focus on how Absa payment relief work in South Africa.
We will begin by briefly explaining what Absa payment relief is.
What Is Absa Payment Relief
This is a program that allows Absa customers to either continue paying if they are in a position to reduce the installments or to defer payment for a period of three months.
The program was launched on Monday, 30 March 2020, to help customers who have been hit hard by the covid-19 pandemic.
The solution applies to credit products, including home loans, vehicle finance, personal loans, credit cards and commercial asset finance, and mortgage-backed business loans.
Wealth, business bank, private bank, and retail customers are all covered.
Now that you know what the program entails, we will show you exactly how it works in South Africa.
How Does Absa Payment Relief Work
Support for businesses has not been limited to specific products.
Eligible customers who are in need of short-term liquidity relief qualify for the relief program.
Absa also considers bespoke solutions for businesses based on their unique requirements and operations to assist them during hard times.
Customers have the opportunity to either continue loan repayment, reduce the installments, or defer payments for a while.
Customers who are able to make payments are urged to continue to enable the bank to extend the measures to others who are not in a position to pay.
The paid amount will enable the cash flow at the bank and help in maintaining the basic bank operations.
Customers with up-to-date accounts can opt-in for the payment relief to assist with cash flow needs.
Credit agreements are revised, including a revision of loan periods while interest will be capitalized.
The criteria to award payment relief varies for businesses and individuals.
The program is not limited to specific products or businesses.
This is how Absa payment relief works in South Africa.
Now that you know precisely how the program works, we will show you the cost of the program.
What Is The Cost Involved In Payment Relief
When you enter into the program, relevant agreements will be adjusted by revising the loan period and capitalizing interest.
Interest will be capitalized.
The program does not attract any additional administration fees for the customers.
This is the cost of Absa payment relief in South Africa.
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