Nedbank announces new coronavirus financial relief measures – including help with home loans and overdrafts

Nedbank has expanded its relief measures and assistance for financially stressed clients to assist with overdrafts, home loans and certain waivers to merchants during the Covid-19 pandemic.

The bank said that from April – June 2020, it will be offering clients that have an overdraft facility a temporary rebate. This rebate will be equivalent to a 100 bps or 1% interest rate reduction on the utilisation of their overdraft facility.

“Clients won’t need to call us to do this,” said Anton De Wet, chief client officer: Retail and Business Banking.

“We will put through the rebate automatically, which will show as a credit on their accounts at the end of each month. However, the account must have been in good standing over the last six months up to the end of February 2020 in order to receive the rebate.

“You also need to remain up to date from April to June to ensure that you continue to receive the rebate,” he said.

Home loans

Nedbank said it will also be offering those with home loans an opportunity to access the latest debt relief solutions.

Should a client wish to cancel a previous home loan arrangement, and enter into a new one, they will need to provide the bank with additional information to expedite the relief process, it said.

In the event of a client’s income being impacted by Covid-19 in some way, the bank is offering various options, including deferment of monthly home loan payments for three months, or payment of only 50% of the instalment for the next three months. Neither option will affect their current credit profile.

“While these options will provide much-needed breathing room, every relief programme still charges interest, fees and insurance to the account,” De Wet said.

“It therefore remains in a client’s best financial interest to continue to meet their monthly home loan payment obligations, if they have the means to.”

Business support

For merchants using Nedbank point-of-sale (POS) devices and facing pressure due to extended cessation of operations, the bank said it will provide relief on the rental of devices.

The bank will waive all POS device rental fees for one month for all non-essential businesses as stipulated by the government.

The merchants’ minimum service fees will also not be charged during the lockdown period, up to the end of April, it said.

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Nedbank announces new coronavirus financial relief measures – including help with home loans and overdrafts