The first grace period for loan servicing was extended to the end of quarantine
The percentage of bank customers affected by coronavirus quarantine ranges from 5% to 15% depending on the financial institution. In this way many consumers of financial services took advantage of credit holidays during the epidemic. about this Financial Club Ukrainian bankers said.
“12-15% of customers avail credit holidays with us. Of these, 80% of customers ended their vacation in June, and they paid the first good. But there is another 20%, some of which will be released in the NPL, ”said Mikhail Velsenko, chairman of the board of Idea Bank.
He estimated that only 0.9% of bank customers did not repay the loan in June.
“The promise of a loan holiday reflected in the repayment of loans and interest in April-May, and even customers in good financial condition tried to take advantage of the loan leave and turned to the bank. This reduced the input stream of repayment of loans and interest. But already in May, we entered into planned amounts of debt repayment. However, the proportion of customers who knowingly repaid the loan prematurely, ”said Mikhail Velasenko.
The situation forces bankers to offer restructuring programs to customers.
“We offered to make the products easier for customers to fulfill their obligations. 5% of our customers applied for a service to re-sign a loan agreement, reduce monthly payments and extend the loan term. That is, 95% of customers continue to fulfill their obligations. But the customers who signed the restructuring agreement continue to fulfill their obligations as usual, ”said Andrei Prusov, the bank’s board vice president.
The banker states that during a crisis, low-income borrowers do not go to banks for new loans, so the quality of loan applications received by banks may increase even further.
“During the quarantine, there was a general reduction in the number of requests, but at the same time, the profile of customers applying to us for loans has improved. In addition, the commodity loan is now a very good result.
They believe that Ukrainians approached the issue of borrowing money responsibly.
“Customers who deliberately assess their ability to repay a loan during turbulence and uncertainty make a conscious decision not to take the loan, because they are not sure they can repay it again,” Andrei Prosov said .
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Earlier we wrote that credit holidays freeing individuals from fines and fines for late payment of consumer loans from 1 March to 30 April were extended to the end of quarantine. This change provides for “anti-crisis” Bill No. 3329-D, adopted by deputies of Verkhovna Rada on 13 May.
Read: Credit holidays for individuals: Ukrainian banks offer
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