Over 100,000 business loan deferrals to small and medium businesses will be assessed over the next few months as the initial six-month deferral period comes to an end.
As part of ongoing COVID-19 strategies, banks have begun the process of contacting customers to discuss the next stages in support and assistance. Banks have warned extensions will not be automatic and any customer who can afford to start repaying their mortgage or business loan will be expected to do so once the initial six-month deferral period expires in September, but the support is there for those who are experiencing financial hardship.
If you have deferred loans, these are the next steps that will be suggested during these assessment calls:
If you can resume repayments at the end of the deferral period, you will be required to do so.
If you are still in financial difficulty, you can work with the bank to restructure or vary the loan, including converting to interest-only payments for a period, or extending the term of the loan.
Following the assessment, once the bank understands your circumstances, in some cases, a further four-month deferral may be granted, but this will not be automatic.
If you are unable to pay the loan over the longer term, you will be offered tailored assistance to addresses your needs.
Resources: Read more from the Australian Banking Association here