No rejections yet: Nedbank provides debt relief, consolidations for over 75 000 clients
CAPE TOWN – Nedbank revealed on Tuesday that by April 23 the lender had provided relief to more than 75 000 clients, across both personal loans and student loans products, with no rejected requests recorded yet.
Managing Executive for Unsecured Lending at Nedbank Werner Terblanche said the impact of Covid-19 had affected economic activity negatively, with many consumers being impacted financially.
He said even beyond the national lockdown, South Africans would feel the impact, directly and indirectly, as the economy recovered in the coming months.
“For personal loans and student loans we are offering clients various debt relief options to help those who have been retrenched, or can no longer earn an income, or have a reduced income. Every client will be assessed individually and offered the most suitable debt relief option to ease their cashflow pressure, during this time.
“In addition, Nedbank offers credit protection insurance on personal loans that will cover loans in the event of death, disability, or not being able to earn an income. This means that clients may be able to claim against this policy and have up to 12 months of their debt payments covered,” said Terblanche.
He said an overdraft facility was another product offered to consumers to support them in managing their monthly cashflow, especially during these increasingly uncertain times. “At Nedbank we are ‘doing good’ for clients by offering a 100 basis point or 1 percent interest rate reduction on the interest charged on the utilisation of their overdraft facility.
“This will be in effect for the months of April to June 2020. Clients will not have to activate this offer. The rebate will happen automatically, showing as credit on their account at the end of each month. New overdrafts opened in this period will also qualify for this rebate,” he said.
Terblanche said while the lender had provided a variety of relief measures during this period, consumers were advised to consider consolidating loans into a single payment.
As consumers and businesses struggle to meet their debt repayments during the Covid-19 pandemic, the financial sector is well positioned to provide much-needed relief in a variety of new ways.
The Covid-19 loan guarantee scheme announced by President Cyril Ramaphosa in April started operating from Tuesday with the initial set of participating banks – Absa, FNB, Investec, Mercantile Bank, Nedbank and Standard Bank – ready to accept loan applications from distressed businesses which bank with them.
The activation of the loan guarantee scheme followed the finalisation of legal details by National Treasury, the SA Reserve Bank and the Banking Association South Africa.
The government and commercial banks are sharing the risks of these loans. Initially, the National Treasury has provided a guarantee of R100 billion to this scheme, with the option to increase the guarantee to R200 billion if necessary and if the scheme is deemed successful.