Licensed credit and financial institutions have been directed to offer a six-month moratorium on repayments on capital and interest for borrowers.
The conditions are as follows:
Any credit facilities sanctioned prior to 1 March 2020 and the applicant must show that he has been negatively affected by the pandemic. Applicants in arrears prior to 1 March 2020 are not eligible.
Applications must be submitted until the 30th of June 2020. The duration of the moratorium and the duration of the application period may be extended.
Applications must be made with the respective credit or financial institution and applicants can apply to forego payments of both capital and interest completely for six months or can also opt to continue to pay the interest but not the capital.
The six-month moratoria period will start with effect from the date of approval of the application.
Credit and financial institutions have the right to refuse the application as long as this is done within the terms of the law.
Applicants who have already taken up a moratorium and feel that the terms under these laws are more advantageous can renegotiate the terms.
The payments missed during the moratorium will be paid during a six-month extension to the term of the credit facility. If the credit facility was due to mature at retirement age, the missed payments would be spread evenly throughout the remaining term of the credit facility after the end of the moratorium period.
