South African banks have committed to assisting small business owners to will most certainly be struggling to repay loans as a result of the COVID-19 pandemic.
With the lockdown fully enforced many businesses have started feeling the pressure.
While these payment breaks will give much needed reprieve especially to small businesses it is important to note is that interest and fees will continue to accumulate on outstanding balances.
All the banks have a criteria they use to determine those who qualify.
Most commercial banks have offered their business clients some reprieve with payment breaks on business loans.
The measures to mitigate the effects of Covid-19 on small businesses for most banks came into effect on 1 April and will lats for three months to the end of June.
The cases will be assessed on an individual basis.
The banks made the measures available as individualised for those who need it and a preferential interest rate will apply to the COVID19 relief interventions given.
No fees will be charged for any relief granted.
Other COVID-19 SME support from the bank includes free daily (small group) and weekly (large group) webinars to share information/guide business leaders, business support to avoid business rescue (pro bono or discounted fees).
You can visit the websites of all the banks to get more details on their respective offers.
See full article in our e-zine.