What specific repayment assistance options are available?

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Specific Repayment Assistance Options Available for SMEs

Small and medium enterprises (SMEs) facing financial difficulties post-moratorium are encouraged to contact their banks to explore various repayment assistance options. These tailored solutions aim to address the specific challenges businesses have encountered due to the pandemic. As of September 25, a significant number of SMEs, specifically 35,000, had applied for such assistance, with a high approval rate of 99 per cent for bank-processed applications.
Extended Moratorium and Rescheduling of Payments

One of the primary forms of assistance available is the extension of the moratorium, allowing businesses a further period of deferred loan payments. In addition to outright extensions, banks offer the rescheduling of loan payments. This can involve adjusting the entire repayment schedule to better align with the business's current cash flow.
Adjustments to Profit and Hire Purchase Payments

For SMEs with specific financing arrangements, options like adjusted profit payments are available. This allows for modifications to the profit component of their loans. Furthermore, hire purchase agreements can also be restructured to provide relief, with options to modify payment terms to accommodate the borrower's financial situation.
Deferred Repayments and Reduced Monthly Instalments

A substantial portion of the approved applications, approximately half, have opted for deferred repayments, providing an immediate reprieve from current obligations. The other half of the approved applications have chosen to reduce their monthly instalment amounts. This approach allows businesses to continue making payments, albeit at a lower, more manageable rate, facilitating their ongoing operations.

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What specific repayment assistance options are available?

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