fbpx
Skip to main content
New Financial Assistance Hub

6-month loan assessments begin as Australians resume loan repayments

7 September 2020

Australia’s banks supported their customers as the country entered the COVID-19 pandemic and they continue to support them on the way out.   

As the initial wave of 6-month loan payment deferrals come to an end, banks have begun to contact customers for their 6-month assessment and to discuss the next stage of support and assistance. 


Of the more than 900,000 loans which have been deferred across the pandemic, at least 450,000 loan deferral customers will be assessed in coming weeks as they approach the end of their deferral in September and October.  

These include 105,000 business loan deferrals to small and medium businesses, of which 65,000 will be assessed by the end of September, and 40,000 by the end of October. 260,000 mortgages are also due to be assessed, 80,000 by end of September and 180,000 by end of October. 

ABA CEO Anna Bligh said, “The loan deferral measure offered to customers by Australia’s banks has led to the largest ever customer contact process in the industry’s history, with an additional 5000 new or redeployed staff working to ensure customers understand their options.”

The next steps presented to customers during these assessment calls will include: 

  • Those who can resume repayments at the end of their deferral, will be required to do so 
  • Those still in difficulty, will 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 
  • Following the assessment once the bank understands the customers circumstances, in some cases, a further 4-month deferral may be granted, but this will not be automatic  
  • Customers who will be unable to pay their loan over the longer term will be offered tailored assistance that addresses their needs  

ABA CEO Anna Bligh said, “Customers know what’s best for them. It’s the bank’s job to set out all the options and implications and ensure customers have the information and the time to make the right decision to suit their needs.”  

Of the 900,000 loans that have had payments deferred, 13% had already resumed repayments by the end of July.  Some banks have estimated that an additional 100,000 people began resuming payments in the month of August.  

Ms Bligh continued, “As customers who are able to begin their repayments again, it allows banks to focus their support on those who really need it.” 

Data above: ANZ, CBA, WBC, NAB, Bendigo, Bank of Queensland, Suncorp  


Covid deferrals: facts and figures – as at July 31 2020

  • In July, 81,000 deferred loans, worth $22.4 billion, resumed repayments.  
  • By the end of July, 109,000 loan deferrals worth $41 billion had resumed repayments (around one in seven of total deferrals). 
  • Overall, more than double the amount of deferred mortgages have resumed repayments (80,000) than deferred small business loans (38,000). 
  • One in five of all remaining outstanding loans were receiving full (13%) or partial (7%) repayments. 
  • Of remaining outstanding small business loans, one in five (22%) were making full repayments and one in twenty (5%) making partial repayments. 
  • Customers with deferred mortgages are also continuing to make full (11%) or partial (9%) repayments. 

Data above: ANZ, CBA, WBC, NAB  

Banks are here to help.

Latest news

1 / 3
Media Releases
Joint Statement: Agreement reached with Armaguard
24 June 2024

The ABA, major banks and major retailers have reached an agreement with Armaguard for its Cash-in-Transit business.  

Read more
Transcript
Anna Bligh doorstop on Government response to mortgage and deposits reforms
15 June 2024

Journalist: The question I have is, are these regulations actually necessary, because my understanding is that a lot of banks already disclose this information?  Anna Bligh: These changes will mean more consistency for customers. Many banks are already doing a number of these things to make it easier for customers to get information. If these… Read more »

Read more
Media Releases
Older Australians reminded to stay financially safe this World Elder Abuse Awareness Day
15 June 2024

With it being World Elder Abuse Awareness Day, the Australian Banking Association (ABA) is reminding older Australians about how they can better protect themselves from scams, fraud and financial abuse.

Read more