Covid-19 Individual Relief

Individuals

Nedbank have undertaken to consider assisting any of their loan agreement customers impacted by the Covid-19 pandemic. Nedbank have stated that this support could take the form of: 

  • deferring your repayments (or part thereof) for a suitable period 
  • extending your existing loan repayment period (the term) or 
  • extending further loans to you to manage short term cash flow shortfalls 

Should you have any loan agreement with Nedbank, you will need to contact Nedbank directly. Clients are encouraged to contact Nedbank on 086 055 5111, if you need to restructure debt or change your payment arrangements due to Covid-19. 

It has been further announced that the: 

  • minimum repayment on all Nedbank credit card products has been automatically reduced to 2,5% of your current balance, for the next 3 months
  • typically, credit card minimum repayments are set at 5% of your current balance
  • you can make a withdrawal from any investment funds with Nedbank or Nedbank Investments, without any penalty charges, up to a maximum penalty charge of R200,000
  • for example, if you have a fixed deposit account, you will be able to access your savings in that account without any penalty fees
  • it is important that you maintain your insurance premiums
  • in some cases, insurance premiums could be capitalised onto the loan amount, thus still covering you loan agreements

CURRENT STATUS: currently available

Website: https://www.nedbank.co.za/content/nedbank/desktop/gt/en/info/campaigns/nedbank-covid19-page.html

For all individual Standard Bank customers, if you earn R7,500 or less and you bank with Standard Bank, you automatically qualify for a three-month reprieve from repayments. If you can and would rather pay your accounts as usual, you are encouraged to do so.

Full-time students with a Standard Bank student loan will benefit from a payment holiday over the same period at 0% interest and with zero fees. The payment holiday will be applied automatically by the bank to qualifying customers, without them having to put in an application.

If you are in financial distress and are not included in the three-month instalment relief offer, you should contact the bank as soon as possible by email on debtcarecentre@standardbank.co.za or call the bank directly to make an individual repayment arrangement.

CURRENT STATUS: currently available, you can email debtcarecentre@standardbank.co.za or call the bank directly.

Website: https://www.standardbank.co.za/southafrica/personal/campaigns/covid-19

Absa assistance is not limited to their corporate and business customers in need of short-term liquidity relief. Absa’s corporate, wealth, business bank, private bank, and retail customers will automatically qualify for the relief programme that applies to Absa’s credit productsApplicable credit products include: home loans, vehicle finance, personal loans and credit cards, as well as commercial asset finance and mortgage-backed business loans. 

Crucially, this programme will not attract additional administration fees for Absa customers. Relief measures will be in the form of a three-month repayment holiday, regardless of the kind of loan you have, or how much money you earn. There will also be an option to reduce repayments instead. Relevant agreements will be adjusted, by revising the loan period and capitalising interest during the relief period. 

Customers in good standing (with up-to-date accounts), and who have been financially impacted by the pandemic, will have the opportunity to opt-in for payment relief, aimed at assisting with cash flow needs.  Customers currently under debt review will continue with their existing arrangements. 

Absa urges those of you who can continue making your loan repayments to do so, as this will enable Absa to extend these measures to many more, who are not in a similar position. 

It should be noted that where Absa customers have opted to take up the home loan payment relief proposition, provision has been made for inclusion of Absa Homeowners Comprehensive Insurance (HOC) cover in the payment relief; to ensure adequate insurance cover for the building remains. Please note that this only applies to Absa HOC paid annually from the Home Loan account, and not to any insurance paid from the customer’s transactional account or that provided by another insurer. 

In addition to offering three-month relief from repayments, Absa said small and medium enterprises such as: hairdressers, pharmacies, florists, and coffee shops that rent premises on Absa campuses have been granted a three-month rental holiday. 

CURRENT STATUS: Absa will approach qualifying customers directly to discuss their payment relief options, and trigger this should you choose to opt-in to this relief scheme. You do not need to contact Absa to arrange this relief. 

Website: https://www.absa.co.za/media-centre/press-statements/2020/covid-19-payment-relief-programme/

From 1 April to 30 June 2020 aimed at providing relief to individual and business FNB customers, whose financial stability has been impacted by Covid-19 pandemic. To be eligible as an FNB customer your accounts will need to be in good standing, and you must have honoured all your repayments to FNB on a consistent basis prior to the Covid-19 outbreak. For qualifying customers, all Covid-19 interventions will be for all products and will be available for a period of three months, covering the following:   

  • instalment cashflow relief, during which part or no instalments/repayments will be due for a specific period  
  • a preferential interest rate will apply to the Covid-19 relief interventions given
  • FNB will offer reduced interest rates in line with the prime interest rate (8.75%), with some variations depending on your credit profile
  • interest rates on your existing loan agreements will remain as is
  • no administration fees will be charged for any relief granted 
  • fees on existing loans will continue, but fees on new loans will be waived for three months
  • assistance with processing claims for loss of income on your credit life insurance on FNB agreements 
  • you can also apply for relief from your FNB life insurance premiums so that your life insurance cover does not lapse due to missed premium payments
  • individualised bridge facilities for those who need it 

It should be noted that interest and fees will continue to accumulate on outstanding balances. Should you, as an individual and or business, require further information, you can contact FNB via your usual digital and assisted banking channels to enquire about these services. During this week, you will also be able to get more information on FNB’s current Covid-19 relief measures through a dedicated icon on the landing page of the banking app.   

 Further to the above measures, FNB has stated that:  

  • the greater FirstRand Group will waiver Speedpoint device rentals and not charge a minimum fee for some merchants, who are in good standing, but operate in distressed industries 
  • in April individual and business customers on FNB Connect will also receive 1GB of free data to help them stay connected during the lockdown
  • the group is also working with industry partners to ensure that customers can use any bank’s ATMs without paying additional fees over and above the fees charged by their bank 

CURRENT STATUS: Please contact FNB via your usual digital and assisted banking channels to enquire about their FNB Covid-19 relief measures. See the FNB app for more.

Website: https://www.fnb.co.za/realhelp/

Capitec has not introduced any special initiatives to help you during the pandemic.

Capitec will be handling agreement defaults on an individual case basis 

CURRENT STATUS: You are urged not to delay in contacting the bank if you are facing a crisis as a result of the COVID-19 pandemic. You can contact Capitec on 0860 66 77 89. 

Website: https://www.capitecbank.co.za/global-one/banking_during_the_covid_19_lockdown/

From the 1 April to the end of JuneWesBank is offering you payment relief plans on financial services products such as your vehicle and asset financing, your full maintenance leasing, and your vehicle stock funding.  

CURRENT STATUS: You can contact Wesbank to receive assistance. 

Website: https://www.wesbank.co.za/home/

RMB is customising relief packages to their business clients and has indicated the following measures:  

  • making extra funding available  
  • waiving of short-term covenants, and 
  • evaluating the capital structures of businesses to help them withstand the long-term effects of Covid-19 

In addition to these client specific interventions, RMB also has prioritised early invoice settlements for its suppliers to prop up smaller businesses. 

CURRENT STATUS: Further updates are to follow. RMB clients should make contact directly.  

Website: https://www.rmb.co.za/category/covid 

All credit products must be covered by credit insurance, which will settle outstanding debt if you die or are permanently disabled. Since August 2017, your instalments are also covered for up to 12 months if you become unemployed, or unable to earn an income – not necessarily due to illness. You should be covered even if you are not fired but placed on unpaid leave. 

If you are permanently employed and you become unemployed, or are unable to earn an income due to contracting Covid-19, or due to measures put in place to prevent the spread of the virus; your premiums payable under the remaining repayment period of your credit agreement can be paid for either 12 months, or until you are able to find employment or earn an income, or whichever is the shorter period. 

If you are self-employed, and you are unable to earn an income due to the crisis, the same criteria should apply. If you can prove that you are unable to earn an income, your instalments should also be covered. 

It will be up to the client to confirm whether you can benefit from the insurance. It is extremely important that South Africans first find out whether they are covered by credit insurance, before they apply for a debt holiday. 

CURRENT STATUS: You need to check if you have credit insurance with your bank. 

  • Capitec & African Bank cover pays the premium up to 12 months, for clients on short-term or compulsory unpaid leave, where the reduction in basic income is 20% or more

The Solidarity Fund is currently seeking both monetary and non-monetary donations, encouraging South Africa to come together as a nation, to look after one another. Individuals and organizations can donate to the fund.

Individuals cannot apply for assistance from the fund, the South African government will distribute donations through various channels to achieve the fund’s goals of: prevention, detection, care, and support as the country deals with the Covid-19 pandemic.

CURRENT STATUS: accepting donations

Website: https://bit.ly/2Jg1ins

Musicians, Art practitioners, and Athletes: 

  • The South African Music Performance Rights Association (SAMPRA) was scheduled to distribute royalties in August 2020 and has brought this forward to April 2020 to assist with relief during the Covid-19 pandemic.  
  • The South African Sports Confederation and Olympic Committee (Sascoc)the Cultural and Creative Industries Federation of South Africa (CCIFSA), and the Department of Sport, Arts and Culture (DSAC) released R150M fund to assist athletes and art practitioners, with fixed-terms contracts, affected by the Covid-19 crisis. Qualifying individuals had to submit detailed proposals to the Arts Culture Promotion Development (ACPD) Branch by 4 April 2020. 

 Film Industry:  

The National Film and Video Foundation (NFVF) has invited the industry to submit funding applications for post-production projects, script development, and animation. Initially planned to launch in August 2020, applications opened on 27 March 2020. The NFVF will prioritize making payments to beneficiaries that have submitted milestones in the past two weeks (as of April 1 2020). The normal funding process will still be applied to all applications, including NFVF Council approvals – scheduled for 10 June 2020. Beneficiaries submitting milestones over the next three months will be consulted on how they can be assisted – this extends only to individuals who have current contracts with the NFVF. Furthermore, as part of the slates program which benefits young emerging producers, the NFVF has identified a savings of R5 million from the current fiscal to be used as part of the relief program. The NFVF will provide a onceoff cash injection of R500 000 to the ten companies currently commissioned by the organisation to assist during the Covid-19 crisis. This relief will only be contained to the slates currently commissioned by the institution.

Website: http://www.nfvf.co.za/home/index.php?ipkMenuID=&ipkArticleID=697

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