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Covid-19 - Credit insurance payment holidays may (in some cases) not be required

Covid-19 - Credit insurance payment holidays may (in some cases) not be required

As per our previous communique, the large South African commercial banks have indicated that they have implemented certain measures to assist clients who may battle to meet their credit obligations due to the Coronavirus pandemic.

However, it may be possible that banks’ clients may not have to opt for a payment holiday or payment restructuring as they may have credit insurance as part of their credit facility.

This credit insurance may well cover the payments on loans in the event of loss of income.

It is therefore advisable for businesses and individuals to contact their bank in order to determine whether they are covered by credit insurance before they enter into expensive debt repayment restructuring.