HOW CAN WE HELP YOU IN THESE UNCERTAIN TIMES?

FNB Namibia recently introduced cash flow relief solutions across various products and channels for customers of good standing who have felt the negative impact of COVID-19. Nangula Kauluma, Executive: Retail Banking, reiterated the fact that FNB aimed to assist customers in keeping control of their finances during these uncertain times.

It is important for us to lend a helping hand so that our loyal customers are assisted financially, while also being able to keep their good credit ratings.

FNB announced a three-month cash flow relief assistance at the beginning of April on home loans, vehicle and asset finance and personal loans, while students, in good standing with the bank, were also granted a three-month payment holiday from their student loans. For our retail customers this means that they receive a payment break from their monthly instalments and premiums for three months. During this time we will pay the customers’ premiums on their behalf, freeing up their cash flow to cover other expenses while keeping their credit profile intact.

This solution was less expensive compared to the traditional payment break with a term extension. With a payment break a customer could potentially be paying “interest on interest” – fees are still levied and repayments on the longer term are based on the conditions of the existing agreement. In the long term, the total cost of credit for a payment holiday with a term extension is significantly higher than a cash flow relief plan.

Instead of extending the customer’s term, FNB allows the customer to repay the cash flow relief amount separately after the payment break, with the following benefits applicable to the account:

• Zero fees

• Flexible repayment period

• The interest rate payable is prime, which could be a lower interest rate than the rate the customer is currently paying on their unsecured credit products such as a personal loan, credit cards or an overdraft

• Repayment will only start once the 3-month relief period is over

This relief plan brings flexibility and real savings on the cost of credit. It is specifically designed to help minimise the impact of COVID-19 on customers’ finances.

Assistance via the FNB App is also available to SME clients with initial lending facilities of less than NAD 5 million for a Gold of Platinum business account, and medium commercial clients with initial lending facilities of less than NAD 7,5 million. All other commercial clients are requested to talk to their relationship manager.

FNB encourages customers to be thoughtful about the solutions they sign up for during this difficult time, especially those who do not have insurance on their credit products.

For more information on the COVID-19 Cash Flow Relief Plan and savings, customers can download the FNB App and follow the easy instructions.