Relief As Absa Bank Kenya Restructures Loans Amounting To Ksh 8.3 Billion

As the world continues to battle the deadly Coronavirus, the question in the minds of many is when all these shall end so that life can go back to its peaceful normalcy.

Despite the fact that people from all walks of life are more afraid of Covid-19 in relation to their health, most businesses have already been placed into an economic intensive care unit (ICU), some already dead and buried.

In Kenya, for instance, businesses such as bars and clubs, hotels, the transport sector including airlines have either been closed down or in the process of being shut down as the virus continues to spread.

What many Kenyans whose businesses have been affected by Covid-19 are afraid of is how they will be able to settle the numerous loans procured from various financial institutions to set up the businesses. The majority are scared of their businesses and whatever little they own being auctioned.

There have been calls on commercial banks in Kenya to “have mercy” on those who had taken loans from them before Covid-19 came knocking and have an “understanding” of how the loans will be paid without either party being disadvantaged.

It is for this reason of putting the customer first and ensuring that all customers are comfortable that Absa Bank Kenya has moved to restructure customer loans for them to be comfortable and less stressed as they strive to clear them.

Absa Bank Kenya has restructured customer loans amounting to over 8.3 billion shillings in the last two weeks as part of a bigger relief program meant to help customers deal with the financial difficulties occasioned by the Covid-19 pandemic.

Under this program, the bank is offering all customers an initial loan repayment relief of up to three (3) months for Personal Loans, Mortgages, Asset Finance, Credit Cards as well as Business Loans.

Customers can request an extension of the repayment relief period to a maximum of 12 months which will be assessed on a case by case basis. Further, customers can extend their credit life insurance cover for three months at no additional cost.

Customers will not incur any extra processing fees as a result of the relief. However, interest will accrue and the loan repayment period will be extended to accommodate the relief.

“As the world continues to grapple with the Covid-19, the economic impact of the pandemic remains a great concern for our country, businesses and individuals. We understand that these are challenging times and we are working with our customers to support them get through these extraordinary times. In line with this, we have reviewed our credit terms and developed various options that we believe will cushion them against the prevailing financial difficulties,” Absa Bank Kenya PLC Managing Director Jeremy Awori said.

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Customers will benefit as follows:

Personal loans: Customers with personal loans should send their ID number to 22268 on or before 16 April 2020, after which they will be notified on the outcome of their application.

Scheme loans (customers whose loans have been offered through their employers). Customers with Scheme Loans should contact their employers to access the loan repayment relief options available.

Business loans: Business customers should speak to their Relationship Managers or call our contact center on 0722130120/0732130120 to access the loan repayment relief options available. Additionally, we have waived all access charges for the Absa Integrator, our online banking platform that enables business customers to transact in real-time. The waiver on Absa integrator charges is applicable until 30 June 2020.

Credit Card customers: Credit Card Customers can either reduce their repayments to as low as 5% of the outstanding balance or pay in equal monthly installments of up to 12 months. To apply, customers should send their ID number to 22268 on or before 16 April 2020.

“As a leading Bancassurance provider, the bank said it was committed to supporting customers with all their personal and business insurance requirements during this uncertain time. Customers can access more details on these offers on our website www.absabank.co.ke”

The bank said that it would continue to monitor the situation as it evolves and adjust its offering to provide customers with financial continuity during and beyond this pandemic.

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