Banking Assistance – Loans and mortgages
Last updated 1st April 2020
Banks are offering relief by way of payment deferrals, reduced interest rates, increased overdraft facilities, waiving of fees, restructuring of loans and / or loan extensions.
What is available
Australian Banks are currently offering personal, business and landlord assistance.
Personal assistance – banks are offering deferral of home loan repayments for 6 months. Depending on individual circumstances, help may include waiving fees, restructuring loans or other things to help you get through the pandemic. Anyone who is granted a six-month deferral will not have their credit rating affected. Read more from Australian Banking Association.
Business assistance – banks are allowing deferral of principal and interest repayment for all loans attached to business for 6 months. Interest will continue to be accrued and loans can be extended. To be eligible, businesses must have less than $10 million total debt to all credit providers. Participating banks are also offering loans, including overdrafts, at very low interest rates to help bridge the cash flow gaps. Read more from Australian Banking Association.
Landlord assistance – landlords complying with the code of conduct regarding moratorium on evictions will receive deferral of business loan repayments for six months. Read more from Australia Banking Association.
How to apply
Individuals in financial destress due to COVID-19 restrictions are urged to reach out to their financial institutions to assess what help is available to them.
SME Guarantee Scheme
Last updated 27th March 2020
The Federal Government is providing a 50% Guarantee to SME Lenders for new unsecured loans to be used for working capital. Loans will be up to $250,000 per borrower, with a maximum 3-year term and will have an initial 6-month repayment holiday.
What is available
The Federal Government will provide eligible lenders with a guarantee for loans with the following terms:
- Maximum total size of loans $250,000 per borrower
- The loans will be up to 3 years, with an initial 6-month repayment holiday
- The loans will be in the form of unsecured finance
Loans will be subject to lenders’ credit assessment processes with the expectation that lenders will take into account the uncertainty of the current economic conditions.
The scheme commenced in early April 2020 and is available until 30th September 2020.
Eligibility Criteria
Eligible businesses include small and medium businesses with less than $50 million turnover. This includes self-employed individuals and not-for-profits.
To meet the turnover requirement, the business’s annual turnover must have been less than $50 million in the previous financial year and be likely to be less than $50 million in the current financial year.
How to apply
If you are interested in the COVID-19 SME Guarantee Scheme you should approach your financial institution for more information.
Please find the list of participating lenders from the Treasury website.
Applications can be found via participating lenders websites.
