Is your Bank Loan on Hold?

Banks are beginning the process of re-assessing the initial wave of COVID-19 loan payment deferrals as the end of the six-month deferral period approaches in September and October 2020. Of the more than 900,000 loans which have been deferred due to COVID-19, the Australian Banking Association (ABA) said at least 450,000 loan deferral customers will be re-assessed in coming weeks.

ABA CEO, Anna Bligh, said those borrowers who can resume repayments at the end of their deferral, will be required to do so. Those still in difficulty, will need to work with their bank to restructure or vary their loan, including converting to interest only payments for a period of time, or extending the term of the loan. In some cases, a further four-month deferral may be granted, but this will not be automatic, Ms Bligh said.