Banks - Loan "Break"

Tjoker

Expert Member
Joined
Sep 22, 2009
Messages
1,360
Good day,

Does anyone know of a mechanism that kicks in for consumers when we are in "kAk" like this?

Been trying to get through to FNB check if they are willing to assist in these uncertain times.....
 

ToxicBunny

Honorary Master
Joined
Apr 8, 2006
Messages
87,242
So far SB are extending this to Small Businesses...

and Nedbank are offering options to everyone on a case by case basis. Though one of the options is "more credit" which makes me think Nedbank are hoping to profit off this situation to some degree which annoys me.
 

Ninja'd

A Djinn
Joined
Jan 7, 2010
Messages
47,648
Way back when I had a loan with African Bank, they had an option to activate a payment break for one month. I never used it though as it just increased additional interest you had to pay back.
 

yebocan

Honorary Master
Joined
Sep 22, 2005
Messages
10,720
So far SB are extending this to Small Businesses...

and Nedbank are offering options to everyone on a case by case basis. Though one of the options is "more credit" which makes me think Nedbank are hoping to profit off this situation to some degree which annoys me.
whatever "repayment holidays" banks come up with, you can be sure they will not be losing a cent ....
 

ToxicBunny

Honorary Master
Joined
Apr 8, 2006
Messages
87,242
whatever "repayment holidays" banks come up with, you can be sure they will not be losing a cent ....
Oh of course... no questions on that front... and I honestly wouldn't expect them to...

But to try and generate additional profit annoys me...
 

Kosmik

Honorary Master
Joined
Sep 21, 2007
Messages
20,427
I think the current priority is to uplift business so that employees are not directly impacted. If folks are retrenched, laid off then they will intervene more directly.

Makes one wonder if retrenchment insurance is still available, how much and is there a waiting period.
 

ToxicBunny

Honorary Master
Joined
Apr 8, 2006
Messages
87,242

chrisc

Executive Member
Joined
Aug 14, 2008
Messages
7,980
The shop I have is managed by Daleglen, who have 4800 properties in Cape Town. They were not interested in what they call "excuses" and said that a lease was signed which must be adhered to

The shop next door manages a maid service and her turnover dropped to zero this morning. Three ladies turned up, instead of 12. There are no customers and all her 10 regulars cancelled
 

Kosmik

Honorary Master
Joined
Sep 21, 2007
Messages
20,427
Nedbank... by suggesting that one of the options they will make available are additional credit lines to private people.

hmmm dunno how that will work in the current climate, pretty sure the NCR will jump on them for extending credit with no backing unless the government backs it. Gov should make a moratorium on all current credit agreements, either freezing interest, and payments or reducing interest to prime.

Oh and just because it's frozen doesn't mean folks should not pay, all its effectively doing is adding additional term on to your loan without increasing cost ie: the loan is effectively "frozen".
 

marco79

Expert Member
Joined
Sep 18, 2008
Messages
3,610
If I get offered a payment holiday on my bank loans, I will pay a quarter installment instead of no installment. Unfortunately the bank I do have loans at haven't made any announcement yet.
 

ToxicBunny

Honorary Master
Joined
Apr 8, 2006
Messages
87,242
hmmm dunno how that will work in the current climate, pretty sure the NCR will jump on them for extending credit with no backing unless the government backs it. Gov should make a moratorium on all current credit agreements, either freezing interest, and payments or reducing interest to prime.

Oh and just because it's frozen doesn't mean folks should not pay, all its effectively doing is adding additional term on to your loan without increasing cost ie: the loan is effectively "frozen".
Yeah, I don't see it working either... I just find it woefully inappropriate to be talking about extending more credit to people to "get through" this event...
 

ToxicBunny

Honorary Master
Joined
Apr 8, 2006
Messages
87,242
If I get offered a payment holiday on my bank loans, I will pay a quarter installment instead of no installment. Unfortunately the bank I do have loans at haven't made any announcement yet.
If we get payment holidays, I will continue as per bloody normal...

A payment holiday doesn't mean interest stops being charged, just that you have a break in terms of being required to pay...

If they freeze interest charges, then I will actually up my monthly contributions to maximise return.
 

Shi

Expert Member
Joined
Apr 8, 2008
Messages
2,367
So far SB are extending this to Small Businesses...

and Nedbank are offering options to everyone on a case by case basis. Though one of the options is "more credit" which makes me think Nedbank are hoping to profit off this situation to some degree which annoys me.
Read somewhere earlier that they are extending this to student loans as well.

They do require the loans to be up to date though.
 

marco79

Expert Member
Joined
Sep 18, 2008
Messages
3,610
Read somewhere earlier that they are extending this to student loans as well.

They do require the loans to be up to date though.
Standard Bank.

Yes, the loans must be up to date. Meaning those that are behind and that need assistance, won't get it. And those that are up to date with payments, that probably don't need it, will get this offer.
 

Spizz

Goat Botherer
Joined
Jan 19, 2009
Messages
25,619
The shop I have is managed by Daleglen, who have 4800 properties in Cape Town. They were not interested in what they call "excuses" and said that a lease was signed which must be adhered to

The shop next door manages a maid service and her turnover dropped to zero this morning. Three ladies turned up, instead of 12. There are no customers and all her 10 regulars cancelled
That’s just made my blood boil :mad:
 

ToxicBunny

Honorary Master
Joined
Apr 8, 2006
Messages
87,242
The shop I have is managed by Daleglen, who have 4800 properties in Cape Town. They were not interested in what they call "excuses" and said that a lease was signed which must be adhered to

The shop next door manages a maid service and her turnover dropped to zero this morning. Three ladies turned up, instead of 12. There are no customers and all her 10 regulars cancelled
That attitude from a property company will hurt many small businesses to the point of closure in the short/medium term... BUT it will destroy the property company into the long term.
I can only assume they have significant property financing in place for those 4800 properties, and they will start struggling to pay it and will go under.
 
Top