Standard Chartered announces three-month loan and mortgage repayment

Dar es Salaam. Standard Chartered Bank Tanzania has become the first bank in Tanzania to announce relief measures for its retail and corporate clients whose income and cash flow has been affected by the COVID-19 pandemic.
In a statement issued by the bank’s retail banking country manager, Mr. Ajmair Riaz said his team is working closely with the bank’s clients in the personal and corporate segments to understand the financial challenges facing them. they face during this unprecedented time.
“In this unprecedented period, we understand the issues that prevail, particularly from a financial point of view. In this regard, we have reached out to our clients to discuss how the pandemic is affecting them and the various challenges they face.

We have therefore, based on discussions with our various clients, decided to take proactive measures to introduce relief measures that will ease the financial burden on our retail and business clients whose revenues and cash flows have been affected by the COVID-19 pandemic. Said Mr. Riaz.

Mr Riaz added that Standard Chartered Bank has looked at a number of options to support its clients and has narrowed it down to two effective measures that include either a payment holiday or an extension of the term of loan repayments.

He pointed out that these options are open to individuals who have personal loans or mortgages from the bank, as well as to business customers, mainly in the SME sector, who have taken out loans from the bank.
He also added that the assistance measures that will be granted to the Bank’s clients will be based on criteria that will take into account the financial impact resulting from cases such as unpaid leave, reduction in salary, loss of employment, infected customers, loss of business and other reasons which the bank may find reasonable during this unprecedented period.
Speaking about the specific options of the relief measures, Mr. Riaz explained that clients who opt for the option of a payment holiday will benefit from a three-month moratorium, and that the option to extend the duration of the payment. loan involves an additional twelve month period for making repayments, resulting in smaller repayment terms that the bank’s customers can handle.

“Our customers continue to be the reason we are in business and why we are ‘here for good’ as per our brand promise. We are also committed to increasing the prosperity of our customers. As we move through this unprecedented time, we remain committed to helping them come out with minimal impact, if any, on their financial situation. We therefore believe that the options of a three-month moratorium and a twelve-month extension of loan repayment terms will go a long way in minimizing the financial impact for our clients, and we will discuss these options with them accordingly. as and when we receive their requests. Mr. Riaz added.

As the country continues to tackle the spread of the pandemic, Mr. Riaz urged the Bank’s clients to make more use of the Bank’s digital capabilities. He pointed out that Mobile Banking’s fully digital banking offers more than seventy banking services, allowing users to complete all of their transactions without having to go to one of the bank’s branches.

The central bank movement

According to the BoT, its measures were aimed at mitigating the impact of the Covid-19 pandemic on the economy.

The bank announced key monetary policy measures, which it said would protect the stability of the financial sector and strengthen the economy against Covid-19, which has had a devastating effect on economic activity around the world.

The measures include lowering minimum reserve requirements – the amount of cash that banks must keep in reserve from seven to six percent to provide lenders with additional liquidity.

The BoT also lowered the bank rate – the level of interest at which commercial banks borrow from the central bank – from seven to five percent to allow them to access cheaper loans, signaling a drop in prices. interest rate on loans.

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Another measure is to allow banks to borrow from the BoT with less collateral than before by reducing the discounts on government securities from 10% to 5% for Treasury bills and from 40% to 20% for treasury bills.

Priscilla C. Carnegie