Despite the positive messaging and economic outlooks of the recent Federal Budget, the country has been thrown into a COVID-19 crisis with outbreaks in multiple states. This situation is serious as many of the cases are the highly contagious variant Delta and transmission appears to be much faster than previous outbreaks. From pizza restaurants to mining sites to Zumba classes have been identified as exposure sites. The spread and severity of the situation have caused several State and Territory Premiers – NSW, NT, WA and QLD to implement lockdowns in various areas of their jurisdictions. This follows closely on Victoria enduring multiple lockdowns over the past year.
Lockdowns and stay at home orders have the potential to significantly impact both individuals and businesses and we fully understand that many people will be understandably worried at this time. For those that currently have loan commitments, either personal or business, and are impacted by the lockdowns, we are providing this update on support and relief which may be available for your circumstances.
This is a quickly developing and changing time and further updates may be announced by authorities at any time. While this information we have collated is initial and general, you should refer to your state authorities and lender for specifics measures.
Banks and Lender Support
The major banks – ANZ, NAB, CBA and Westpac, were all quick to respond to the Greater Sydney lockdown with public statements, pledging support measures for their loan customers. Relief is available for many types of personal loans, home mortgages and commercial finance. Other lenders are expected to also offer similar support.
The support may be by way of deferring payments to a later date or with waived fees. The type of support may vary from lender to lender and according to individual circumstances. Banks and lenders are reaching out to their customers via email and other means.
If you are suffering financial hardship due to the lockdown situation and are worried about meeting your loan commitments, you should contact your bank or lender and discuss the options available to you. Failing to contact the lender and simply not making scheduled loan payments can result in negative entries on a credit profile which can have negative ramifications on future loan applications.
If offered a deferred payment arrangement, ask if this means the interest charges will be paused or if interest will be charged on the extended loan term. Remember, secured personal loans such as secured personal car loans, boats, caravans and motorbikes, do permit extra payments. So if you do defer payments now, you may be better placed to make additional payments at a future time and essentially make up any extra interest charged with interest saved through extra payments.
If you have made extra payments on your loan in the past, discuss the possibility of assigning those payments to currently scheduled repayments.
Support from Commonwealth and State Governments
Individuals that have lost work due to lockdowns may be eligible for payments through the Commonwealth Disaster Payments Program. This is a Federal Government measure, accessible via the My Gov website with details outlined on the Services Australia website. Criteria do apply.
Businesses that have experienced a downturn in turnover due to lockdown can seek financial assistance through state and territory governments. The assistance will vary from state to state and criteria will apply. The NSW Government has announced grants of up to $10,000 for small businesses, subject to the turnover downturn and other measures such as deferment of July payroll tax for some businesses. https://www.nsw.gov.au/media-releases/major-new-covid-19-support-package-to-help-tens-of-thousands-of-businesses-across.
The support measures will need to be applied via the relevant sources. Look for the COVID-19 support banner on your state government website and follow the links.
Support from Jade Finance
Jade Finance continues to operate our contactless and online services across all loan categories throughout lockdown periods:
- Existing loan holders that are facing hardship should contact the lender rather than Jade to source assistance with repayment relief. Jade Finance is not in a position to source this support it is up to the bank or non-bank lender to provide.
- If you have a loan application is processed or quoted through Jade Finance, that process will continue through the lockdown. Our team is working to source quotes and finalise all applications we are currently working on.
- If the lockdown has you thinking twice about proceeding with a loan you have applied for, contact us and discuss how best to proceed. This may involve putting your application on hold or changing to a pre-approved loan which you can activate after the lockdown is lifted.
- If you are keen to proceed with the purchase of a new car, boat, caravan, truck or equipment, we have accepted quote requests and new loan applications as normal.
- If your loan process is approaching settlement, our consultants will arrange the settlement between our lender and your seller. There is no need for you to meet in person to complete this stage.
The lockdown may cause delays in the delivery of some goods. If in the process of purchasing, contact the dealer and discuss how best to finalise the process.
If your business is suffering cash flow issues due to lockdown and you need finance quickly, contact us to discuss a https://jade.finance/business-overdraft or Business Loan option.
We are staying across all aspects of this unfolding crisis and will post information of interest regarding loans and finance.
Contact Jade Finance 1300 000 008 for both personal and business lending requirements.
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.