Standard Chartered #ticker:SCBK (StanChart) Bank of Kenya has announced a three-month repayment break on personal loans and mortgages to its customers, in changes aimed to cushion them against the economic hit from coronavirus pandemic.
The lender has further given mortgage customers an option for a six-month window of paying interest only instead of servicing together with principal sum.
StanChart said it will also allow for extension of loan or mortgage repayment for up to 12 months as was agreed with the Central Bank of Kenya.
“We will work with our clients to understand their needs and how we can help them manage the economic impacts of this pandemic,” the bank wrote to its customers.
“For all our commercial and global clients, your relationship managers are proactively reaching out to you to find out how we can help at this time.”
StanChart had 2,038 mortgage accounts valued at Sh25.9 billion in 2018. Some 63 accounts with Sh454.94 million were not being serviced. The lender was the third highest mortgagor after KCB and Housing Finance.
The move will give relief to customers at a time coronavirus has hit homes and businesses hard in the form of reduced cash flows, making it challenging to keep up with payment of loans.
Credit card holders have been given room to settle outstanding balance in six or 12 months.
StanChart move follows that of Stanbic Bank #ticker:CFC which also offered Small and medium sized enterprises (SMEs) a three-month repayment break.
Stanbic also instructed large corporate customers to contact it for assessment and restructuring of their loans based on their respective industry circumstances.
Absa Kenya said it will provide options for customers to either restructure their loans by reducing their monthly instalments over a period of up to one year, or take a “short-term repayment holiday”.