More than two thirds of consumer loans that had principal and interest repayments deferred due to the impact of Covid-19 were now ‘back to normal’ said the New Zealand Bankers’ Association today.
At the same time, nearly 40% of consumer loans that had reduced repayments were now back on track.
“As we near the end of this extraordinary year it’s great to see that people who took up offers to defer or reduce their loan repayments are now getting back on track,” says New Zealand Bankers’ Association chief executive Roger Beaumont.
“Nearly 70% of deferred consumer and business loans are back to full repayments. People who reduced their repayments to get through are also making good progress.
“This shows that people who took loan deferrals, or reduced their repayments, understand why it’s a good thing to restart repayments if they can. It also shows how banks are working proactively with affected customers to support them through tough times.
“Banks will continue to work with affected customers to help get them back on track.”
As of 31 October:
- 69% of consumer loans (including home loans) that had deferred all repayments were back to full repayments
- 37% of consumer loans that had reduced repayments were back to full repayments
- 69% of business loans that had deferred all repayments were back to full repayments
- 50% of business loans that had reduced payments were back to full repayments.
In March, in consultation with the government, the Reserve Bank and credit reporting agencies, all New Zealand retail banks offered loan deferrals for up to six months and reduced loan repayments to customers financially impacted by the Covid-19 global pandemic. In August, the option of deferring loan repayments was extended to 31 March 2021.