First National Bank has relieved the stress of a number of customers, by allowing them to take a payment holiday whilst retaining a prime interest on their repayments.
In a Twitter thread today, 16 April 2020, First National Bank (FNB) provided customers with an explanation of the bank’s Cashflow Relief Plan, which is aimed at helping those who have had income interruptions due to the nationwide lockdown. The plan offers a payment break from monthly instalments for three months, where the bank delays customers’ commitments for three months. The payment plan also allows customers to protect their credit records and avoid delayed interest, by retaining the current prime interest rate of 7.7%. There will also be no fees on the facility and no penalties if money is returned early.
FNB also stated, “In the long-term, the total cost of credit for the FNB cashflow relief plan is significantly lower than a traditional payment holiday with a term extension. This is less expensive compared to the traditional payment break with a term extension, where you could potentially be paying ‘interest upon interest’, and incurring fees during the break, and still subject to often higher interest rates and fees.”