COVID-19: Abu Dhabi banks offer loan and financial relief to customers affected by coronavirus
Relief package includes 17 initiatives to support retail and SME customers
Dubai: Abu Dhabi-based banks have announced a package of initiatives to support the emirate’s individuals and businesses as the country fights the coronavirus disease (COVID-19), in line with the directives of His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
First Abu Dhabi Bank, Abu Dhabi Commercial Bank Group and Abu Dhabi Islamic Bank in coordination with the Abu Dhabi Department of Finance and Department of Economic Development, have put together 17 financial initiatives for individuals and SMEs.
All Abu Dhabi banks had announced last week various measures to support their customers affected by coronavirus outbreak.
Relief on charges, interest
Relief for retail customers include:
- Payment deferral of 3 months for retail loans of affected customers with zero charges and interest waived for the deferral period
- Interest-free installment offers on loans for school tuition until June 30
- A payment deferral of one month will be available on request for all customers holding personal loans, auto loans and / or mortgage loans with no service charge
- Reduction in bank charges by 50 per cent on early settlement of loans for eligible customers (until June 30)
- An increase in the Loan to Value ratio (LTV) by 5 per cent for first-time home buyers
- Full refund of processing fees for foreign currency credits on cards for due to cancellation of travel plans, and
- Reduction of 50 per cent in late payment charges on credit cards.
For SME customers, these banks will defer up to three months of installments for all loan types. The banks are also working with all customers to ascertain the COVID-19 impact on their cash flows, to provide further support in loan restructuring or deferment.
Defer installments (principal & interest on existing loans (personal, auto and mortgages) and credit cards for up to 3 months for eligible customers until June 30, 2020 with no additional bank charges.
1. Halt foreclosures on mortgages for defaulted customers until September 30, 2020.
2. Halt suspension of bank accounts for retrenched customers until June 30, 2020.
3. Refund credit card processing fees in full for foreign currency transactions committed after January 1, 2020, associated with cancellation of travel plans.
4. Installment programmes with no service fees for utility bill payment until June 30, 2020.
5. Defer installments on new loans (personal, auto & mortgages) and credit cards for up to three months for eligible customers until June 30, 2020 with 50 per cent reduction in associated bank charges.
6. Reduce interest charges on new loans and credit cards for eligible customers based on new prevailing rate.
7. Reduce bank charges by 50 per cent on early settlement of loans until June 30, 2020.
8. Reduce required down-payment by 5 per cent for first-time home buyers.
9. Interest-free installment plans for school tuition with waiver of service charges or 0 % interest loan until June 30, 2020
Seven initiatives for SMEs
1. Defer installments on existing borrowing up to 3 months for eligible customers until June 30, 2020 with no additional bank charges.
2. Reduce bank’s merchant service fees (credit card transactions) by 50 per cent for eligible SME customers with usage below Dh5 million per annum until June 30, 2020.
3. Reduce banking fees and charges on zero balance accounts up to 50 per cent for eligible customers.
4. Reduce minimum average balance requirements for all SME account categories to up to Dh10,000 per month for eligible customers.
5. Defer instalments on new borrowing for up to 3 months for eligible customers until June 30, 2020 with 50 per cent reduction in associated bank charges.
6. Reduce interest charges on new borrowings based on new prevailing interest rates for eligible customers.
7. Reduce bank charges by 50 per cent on early settlement of existing borrowing for eligible customers until June 30, 2020.