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CBA: Deferral for BetterBusiness Loan ($5m-$10m)

Summary

Eligible business customers with total lending limits between $5-10 million can choose to defer BetterBusiness Loan principal and interest repayments for up to six months from April 2020, in line with the ABA loan deferral arrangements. What is available? Option to request deferral of all principal and interest repayments on BetterBusiness Loan repayments for a period of up to 6 months on an ‘opt-in’ basis, under the following conditions: For commercial property customers, the customer provides an undertaking to the Bank that for the period of the interest capitalisation, the customer will not terminate leases or evict current tenants for rental arrears where those arrears are a result of coronavirus; The customer has advised that its business is affected by coronavirus; and Impacted loans are current and repayments have been up to date for 90 days prior to the application. What are the implications? During the deferral period, deferred interest and any fees will be added to the outstanding balance in accordance with the contract and capitalised over the remaining term of the facility. The total amount of interest payable will be more than it would have been under the original contract term if payments are deferred. For amortising (principal and interest) loans, we will extend the loan term at the end of the deferral period so that repayments are in line with what is currently being paid, regardless of any interest rate changes during the deferral period. After the end of the deferral period, interest rates and repayments may change in accordance with the contract. For interest only loans, we will add the deferred interest and any fees to the principal of the loan balance at the end of the deferral period. This amount won’t need to be repaid until the maturity of the loan. Interest repayments will recommence after the end of the deferral period in line with the contract.
Eligible business customers with total lending limits between $5-10 million can choose to defer BetterBusiness Loan principal and interest repayments for up to six months from April 2020, in line with the ABA loan deferral arrangements.

What is available?
Option to request deferral of all principal and interest repayments on BetterBusiness Loan repayments for a period of up to 6 months on an ‘opt-in’ basis, under the following conditions:
  • For commercial property customers, the customer provides an undertaking to the Bank that for the period of the interest capitalisation, the customer will not terminate leases or evict current tenants for rental arrears where those arrears are a result of coronavirus;
  • The customer has advised that its business is affected by coronavirus;
  • and Impacted loans are current and repayments have been up to date for 90 days prior to the application.
What are the implications?
During the deferral period, deferred interest and any fees will be added to the outstanding balance in accordance with the contract and capitalised over the remaining term of the facility.

The total amount of interest payable will be more than it would have been under the original contract term if payments are deferred.
  • For amortising (principal and interest) loans, we will extend the loan term at the end of the deferral period so that repayments are in line with what is currently being paid, regardless of any interest rate changes during the deferral period. After the end of the deferral period, interest rates and repayments may change in accordance with the contract.
  • For interest only loans, we will add the deferred interest and any fees to the principal of the loan balance at the end of the deferral period. This amount won’t need to be repaid until the maturity of the loan. Interest repayments will recommence after the end of the deferral period in line with the contract.
How do I get in contact? If you have a Relationship Manager they will be able to assist you at this time, or speak with our dedicated Business Financial Assistance team on 13 26 07, who are available 24/7.
CBA: Deferral for BetterBusiness Loan ($5m-$10m) CBA: Deferral for BetterBusiness Loan ($5m-$10m) <strong>How do I get in contact?</strong> If you have a Relationship Manager they will be able to assist you at this time, or speak with our dedicated Business Financial Assistance team on 13 26 07, who are available 24/7. P456 https://www.savvysme.com.au/marketplace/images/detailed/1/blob_rftd-qe.png 0.000000 2020-06-01