Absa has launched an extensive COVID-19 payment relief programme including:
- Relief for consumer, business banking and wealth customers
- Bespoke solutions for corporate and business banking clients
- Additional administration fees waived
- To allow benefits to reach more customers, those who can pay are encouraged to continue payments
- Programme applies to all Absa markets, subject to legislation, regulations and conditions applicable in each country
Eligible customers in need of short-term liquidity relief will qualify for the relief programme that applies to Absa’s credit products. These relief measures apply to Absa’s corporate, wealth, business bank, private bank and retail customers.
Crucially, this programme will not attract additional administration fees for customers. Support to corporate and business banking clients will entail solutions based on their unique requirements and operations.
Businesses and corporates are encouraged to contact their relationship managers for further details.
The programme incorporates a three-month payment relief and allows customers in need of short-term financial relief to reduce their monthly instalments. Customers in good standing (with up-to-date accounts), and who have been financially impacted by the pandemic will have the opportunity to opt-in for payment relief, aimed at assisting with cash flow needs. This means the programme will give customers the opportunity to either continue paying if they are in a position to, to pay reduced instalments by agreement with the bank or to defer payments for a period of three months.
Relevant agreements will be adjusted, by revising the loan period and capitalising interest during the relief period.
The principles applicable to this relief programme in South Africa are extended to Absa’s other markets in Africa but will be implemented subject to the various conditions, laws and regulations applicable in each country.
Please click on the following link for more information:
ABSA partnership with the South African Futures Trust (SAFT)
The South African Future Trust (SAFT) is an independent trust set up by Nicky and Jonathan Oppenheimer, in partnership with the South African government and private sector.
SAFT will transfer funds directly to employees of participating SMMEs, via interest-free loans where employees themselves carry no liability.
What is it?
Qualifying employees receive funds directly from the partner bank.
The interest-free loan is repayable in full on, or before 31/12/2025.
If the loan is approved the permanent employees of the qualifying SMMEs will receive weekly payments of R750 per employee over 15 weeks (i.e. R11 250 in total per employee) and the full amount of the loan will be a function of the number of permanent employees on the SMME’s payroll. Therefore, there is no limit to the number of permanent employees that can receive this funding.
Absa will administer the loans on behalf of SAFT, facilitate the signing of the loan agreement with the qualifying SMME, and make payments directly to the affected permanent employees.
Any SMME that meets the qualification requirements and banks with either Absa, Nedbank, Standard Bank or FirstRand Bank can apply. SMMEs must apply at the bank where their main transactional account is held.
To qualify for a SAFT loan your business needs to:
1) Be able to prove the current or future impact of COVID-19 on your operations;
2) Have been trading for 24 months or more
3) Be in good standing with the bank
4) Have an annual turnover of less than R25 million
5) Includes sole proprietors, partnerships, operating trusts, CCs and Pty Ltd.
To apply email ABSA at firstname.lastname@example.org