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Amidst the COVID-19 crisis there is some hope for people with bank loans.
The financial institutions have in principal agreed to invoke hardship allowance repayments under the Consumer Credit Act.
Economy Minister Aiyaz Sayed-Khaiyum says a meeting was held with the Association of Banks yesterday where these issues were discussed at length.
“We hope to have some further meetings with them – but there is a general agreement in principal – that firstly we have the Consumer Credit Act. Under this Act – that relates to personal mortgages and hire purchase for example, there is a hardship allowance.”
Sayed-Khaiyum says the financial institutions are looking at repayment holidays where they will be deferring principal amount payments.
“Which means for example in some instances could be complete stop of repayments, or could be only interest payments, And then of course there are many other loans that fall outside of the Consumer Credit Act for example – the small businesses and other large businesses and again Banks have shown an appetite to stop repayments. This does not mean that if you are running a very healthy business and you have not been affected by COVID-19, you will also get that holiday. It is for all those businesses who have actually been affected.”
It is hearting to see that the Government and stakeholders taking proactive steps as we approach a financial and economic meltdown, quoted Arif Khan, Broker and Director of One Agency Bayshore Realestate. We will remain open as the people need our assistance in either downsizing or relocating admist these crises. I have been in the realesatate business for over 20 years and seen various cycles, I’m sure that we will come out of it but it will take time
