- We have created a payment relief plan to help customers financially impacted by COVID-19
- Plan applies to corporate, business and retail customers who have credit products
- The Plan is free to all qualifying customers
The COVID-19 pandemic has resulted in a worldwide economic downturn and a complete lockdown in South Africa. Businesses and individuals are being impacted financially both locally and globally. Therefore, it is our duty to offer as much relief and assistance as we can to our customers, during this unprecedented outbreak.
We have created an extensive payment relief plan to minimise the financial impact of the COVID-19 pandemic.
For retail customers, the plan applies to our credit products:
- Home Loans
- Personal Loans
- Credit cards
- Student Loans
- Vehicle loans
Customers who qualify will get a 3-month non-payment period to help ease their financial burdens.
Loan instalments, interest and fees will accrue monthly and be capitalised into your loan account, but loan terms and repayments will be adjusted to help you cope during this difficult period.
Corporate and business customers will receive tailored solutions specific to their individual circumstances. These solutions will apply to credit products including:
- Mortgage-Backed Business Loans
- Commercial Assert Finance products
Our plan does not carry any extra fees or costs. It is aimed solely at helping our customers who are struggling with cash flows due to the COVID-19 pandemic.
Our payment relief plan gives instant, short-term financial relief to qualifying Absa customers who are struggling to repay Absa credit products as a result of the COVID-19 virus and lockdown.
Our plan is aimed at business, corporate and retail customers who have Absa retail credit products including home loans, vehicle finance, personal loans and credit cards, and Absa commercial credit products including commercial asset finance, commercial property finance, and mortgage-backed business loans.
Our plan is free – no additional fees are charged for implementing our payment relief solutions
Our plan is available right now
Qualifying customers will be provided with a payment relief plan depending on their products and their circumstances. This could be a loan term adjustment and a non-payment period of 3 months.
We will also consider bespoke solutions for businesses based on their unique requirements and operations.
You or your business will need to have one or more Absa credit products and be up to date with all your repayments.
If your application is successful you will receive a new repayment schedule or loan term.
Businesses may also receive specific assistance dependant on their circumstances
The processes will apply but we will proactively contact employees.
As a financial services provider it is our responsibility to ensure the well-being and financial health of our customers in the face of such unprecedented events like the COVID-19 virus outbreak. This is in line with our obligation to our country’s economic stability and our duty to do all we can to assist in the financial wellness of all South Africans.
We aimed to have the most comprehensive plan available in order to be able to assist as many of our customers as possible. We worked with the Banking Association, engaged various Regulators and moved as swiftly as we could in order to deliver a plan that would genuinely help as many of our customers as possible.
However, our plan is now fully active and accessible to all of our customers should they need it.
Yes, interest will still be capitalised but the burden of payments during this period will be eased somewhat for customers who need it.
Despite the sovereign downgrade by Moody’s Investors Service we want to assure all our customers that South Africa's financial system remains stable. It has previously withstood significant challenges such as the global financial crisis of 2008/9.
South Africa has seen a heightened risk of sovereign rating downgrades during the past two years and so, in preparation, we built substantial buffers to withstand market-wide systemic events such as this COVID-19 outbreak. Therefore, we once again reassure our customers that our financial system is stable and secure.
If you have opted to take up the home loans payment relief proposition, provision has been made for inclusion of Absa Homeowners Comprehensive Insurance (HOC) cover in the payment relief, to ensure that adequate insurance cover for your property remains. Please note that this only applies to Absa HOC paid annually from your Home Loan account and not to any insurance paid from your transactional account or provided by another insurer.
If you have a Credit Protection Plan or Gold or Premium Value Bundle and are struggling with making your credit payments, you may be able to claim from your policy. Visit our Credit Life page for more information, or to confirm if you qualify.