Absa bank Zambia has announced that it has offered K450m loan payment relief to 300 customers who have been financially impacted by the Covid -19 pandemic.
On 15 April 2020, Absa bank became the first bank in Zambia to announce its opt-in loan payment relief programme as a direct response to the global pandemic and to date the bank has offered support to customers in sectors such as manufacturing, agriculture, aviation, hospitality, retail trade and transport.
Absa Bank managing director Mizinga Melu says the Bank’s focus during this difficult time is to support its customers as Covid-19 pandemic remains a global concern adding that the financial impact that it has had on economies across the world has been significant.
“As Absa, we are aware that some of our customers have been adversely impacted as a result and today, we are pleased to announce that we have offered payment relief to 300 customers to the value of K450m,” She said
According to a statement made available to the Zambian Business Times – ZBT on May 13, 2020, the payment relief programme which is aimed at assisting with cash flow needs is a comprehensive solution that applies to Absa’s credit products that includes personal loans, business loans, asset finance loans as well as mortgages and allows customers to reduce or defer their monthly instalments.
As part of its solution based approach to meet the unique requirements and operations of its respective clients, the bank is also adjusting relevant agreements by revising the loan repayment period and capitalizing interest (adding interest to the outstanding loan balance) during the relief period. This entails that the tenure of the loan may be extended by the same period for which the payment relief has been offered.
“This relief package is for an initial three-month period, we will continue to review the programme and assess the necessary support our customers and clients will require should the effects of the pandemic adversely affect macroeconomic conditions.” Mizinga melu added.
In implementing this programme, Absa bank is complying with applicable laws and regulations in Zambia whilst remaining committed to delivering banking solutions that are tailored for its diverse customer base.
