Covid-19: Standard Bank offers zero percent interest with student loan 'holiday'
Everyone studying full time with a Standard Bank student loan will receive a three-month payment holiday at 0% interest and with zero fees.
This was announced by Standard Bank on Sunday as part of its Covid-19 financial relief measures for customers. The payment relief is also being extended to the bank’s small enterprise customers with turnover of less than R20m.
The relief measures will commence on April 1 and run through to the end June.
The new payment terms will be set up automatically. Only bank clients who do not want to take up the offer need contact the bank to opt out.
The bank said in a statement the relief will not only assist its small business clients with managing their cash flows, but also allow them to honour payments to their own employee base.
“The relief will come from capitalising the interest and fees typically paid to the bank each month and changing the terms of repayment to a later date”, said Standard Bank South Africa chief executive, Lungisa Fuzile.
“This, we hope, will relieve cash flow constraints currently caused by the Covid-19 outbreak.”
Other customers who need help are advised to contact the bank to indicate their circumstances, said Standard Bank. Assistance from the bank will also include options to defer payment for an agreed period and the opportunity to restructure and consolidate the overall debt.
“It is our responsibility to ensure we look at solutions to assist our customers during this challenging economic period, and we continue to work closely with the South African Reserve Bank to find ways to partner in the best interests of all our stakeholders,” said Fuzile.