As is the Australian way, many communities, agencies and government at all levels rallied swiftly to provide assistance and support to those impacted by the floods in NSW and Queensland. Amongst those quick to offer flood victim loan support was Australia’s banks through its Australian Banking Association.
Many individuals and businesses have been severely impacted by these devastating floods and Jade Finance stands with others to offer flood victim support and advice for those with goods under finance. We have prepared this overview of what to do and who to approach if you have been affected by the floods and are not in a position to make loan repayments and are seeking flood victim loan support; if you have had goods or equipment destroyed in the conditions; and if you are seeking quick loan approvals for finance to swiftly replace goods which are a total write-off.
Loan and Finance Repayment Support
Australian banks have offered what it describes as a financial lifeline to flood victims with the announcement of a range of options on the table for loan repayment support. While the Australian Banking Association represents banks, it may be expected that other lenders including finance companies and non-bank specialist lenders, would also be supporting their customers.
So while the information provided here relates specifically to the Banking Association statement, those with loans from non-bank lenders requiring support are also urged to reach out to their lenders.
The Banking Association issued a statement which includes a range of options which may be available to home mortgage holders, personal loans and some types of business finance. Ms Anna Bligh, the CEO of the Australian Banking Association said that deferrals of loans and other arrangements are offered to reduce repayment commitments in the short term. Ms Bligh encourages flood-affected loan holders to reach out to the bank to find out what support is available for their specific situations.
The support will vary depending on the bank and individual circumstances, but may include:-
- Waiver of fees and charges
- Deferral of up to 3 months of loan repayments
- Restructuring to achieve repayments which are more workable with fee waivers
- Debt consolidation for more workable repayment schedule
- Cash flow support and emergency finance arrangements including credit card limit increases
If you have finance which was originally arranged through Jade Finance, then you need to reach out to the lender or to the bank that we arranged that loan through. They will be the ones to offer any support in regard to repayments.
When considering the support offered, be mindful that deferring repayments does not mean they are waived or wiped. The monies will still need to be repaid, just at a later date. The 3 month deferral would extend the loan term by that timeframe.
When similar support was offered to loan holders during the COVID-19 crisis, lenders advised that any request to defer loan repayments would not result in a negative impact on their credit rating. One would expect the same to apply during these circumstances but it is worth asking. Also ask if interest charges on the loan will be paused during the deferral to avoid additional interest.
Action for Goods Lost while Under Finance
If goods which are currently the subject of a loan or finance have been lost, destroyed or rendered inoperable due to flood, those affected need to contact their insurance company. When goods are acquired with finance, lenders require an insurance policy be obtained to cover the goods.
When the goods are written-off, the insurer should be your first call and the lender should also be advised of what’s happened. The insurer will tell you what to do and will handle the claim. The insurer pays the lender what is owed to them under the policy and any additional monies should come to the policy holder.
It is important to advise your lender so any missed repayments do not result in a default being recorded.
Loans to Replace Lost Goods
Those that need to immediately replace the goods that have been written-off in the floods do not have to wait until the finalisation of their insurance claim before contacting Jade Finance for a loan to purchase replacement goods.
We provide fast approvals on finance across our loan portfolio to facilitate quick replacement of goods, especially motor vehicles and business equipment.
We provide finance for a vast range of machinery, plant and equipment including for retail outlets, hospitality and catering, agriculture, engineering, construction and excavation, computer and IT systems and many more. Please reach out and discuss what your need with one of our consultants.
Emergency Cash Support
Flood victims may be eligible for immediate cash payments via the Federal Government Disaster Response Payments. NSW and Queensland governments also have programs in place as do welfare and community organisations such as the Salvation Army and Red Cross.
Community groups and organisations such as Givit are working to assist individuals and communities source the goods, clothing and other items they require.
This information relates primarily to the initial emergency response. The Banking Association and others will be offering ongoing assistance when the recovery and rebuilding phase commences.
Contact Jade Finance 1300 000 008 for quick loan approvals to replace goods lost in the floods
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.