Standard Bank says it has granted installment relief to nearly 150,000 customers.

Standard Bank says it welcomes the announcement of the Covid-19 term loan scheme for small and medium-sized businesses by President Cyril Ramaphosa.

The R200 billion scheme provides much-needed and welcome relief to businesses that have been negatively affected by Covid-19.

Standard Bank said it has granted installment relief to nearly 150,000 clients in need of financial support after the national shutdown, amounting to more than R1 billion per month on the R44 billion of total loans affected.

The lender said it is in consultation with the government on the implementation of the scheme and will be ready to receive applications as soon as all parts of the industry have concluded commitments and signing agreements.

The application form will be available on the bank’s exclusive Covid-19 website.

“We continue to support our commercial banking clients. In addition, we fully support government initiatives to help stimulate economic activity and protect businesses and jobs, ”said Funeka Montjane, National Executive, Personal and Commercial Banking of South Africa, Standard Bank.

“It will take a collaborative effort between government, business and wider society to navigate the impact of Covid-19 and put South Africa on the path to economic recovery.”

How the Covid-19 Term Loan Plan Will Work:

Commercial clients with an annual turnover of less than R300 million will be able to apply for a Covid-19 term loan.

A company must also be:

  • Current as of February 29, 2020 with your bank;
  • Registered with the South African Revenue Services;
  • You do not have the ability to borrow;
  • Negatively impacted by the blocking of Covid-19 and the consequent slowdown in the economy.

Funds borrowed through the plan can be used for a business’s operating expenses, such as salaries, rents, leases, and contracts with vendors. The loans will cover up to three months of operating costs.

Standard Bank support for SMEs

In addition to the above scheme, and in response to Covid-19, Standard Bank said that business customers with a turnover of less than R20 million annually have been automatically offered payment relief over a three-year payment period. months.

All business clients have been offered a range of relief measures, optionally, ranging from vacation pay, reduction of fees, consolidation of debts, reduction of interest rate to payment of ex gratia insurance for loss from income.

The ban says it also runs the South African Future Trust, which provides relief in the form of a five-year interest-free loan to SMEs, for the purpose of supporting the company’s permanent employees.

To date, more than 9,000 employees of Standard Bank small business clients are receiving salary assistance through this scheme, he said.

Read: Standard Bank boss talks about job cuts and branch closures in pursuit of digital transformation

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