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Individuals with loans of all kinds from Absa will be invited to take a debt holiday for three months, or reduce their repayments over that time, because of the Covid-19 disaster.

There is no income limit on the offer; everyone who is up to date on their payments so far will be eligible, the bank says.

Business and corporate customers can make also make arrangements to get through the crisis.

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Individual customers who owe Absa money will be invited to take up to a three-month repayment holiday, regardless of the kind of loan or how much money those customers earn.

They will also have the option to reduce repayments instead.

This follows similar measures announced by Standard Bank and Nedbank.

Like Nedbank, Absa has invited its business and corporate customers to get in touch for case-by-case arrangements on their debt.

But individual customers will be automatically eligible, an Absa spokesperson told Business Insider South Africa. The only qualifying criterion is that accounts must be up to date, with no outstanding payments.

The relief, or a reduction of monthly instalments, will be effective from March 30.

Absa said those who use the option will not pay additional administration fees.

Businesses and corporates are encouraged to contact their relationship managers at the bank for further details.

“We realise that this is a difficult time for our customers and businesses whose financial means are being negatively affected,” Absa CEO Daniel Mminele said.

“We urge those of our customers who are able to continue making their payments, to do so. This will enable us to extend these measures to many more who are not in a similar position.”

Mminele said the principles behind the debt-relief programme in South Africa will be extended to Absa’s other markets in Africa, but will be implemented subject to the various conditions, laws and regulations applicable in each country.

He said Absa will also give small and medium-sized businesses renting space at Absa buildings a rental holiday for the next three months.

(Compiled by James de Villiers and Phillip de Wet)

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