COVID-19: Abu Dhabi banks of­fer re­lief to cus­tomers

The Pak Banker - - FRONT PAGE - DUBAI -REUTERS

Abu Dhabi-based banks have an­nounced a pack­age of ini­tia­tives to sup­port the emi­rate's in­di­vid­u­als and busi­nesses as the coun­try fights the coro­n­avirus dis­ease (COVID-19), in line with the di­rec­tives of His High­ness Sheikh Mo­hamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Com­man­der of the UAE Armed Forces.

First Abu Dhabi Bank, Abu Dhabi Com­mer­cial Bank Group and Abu Dhabi Is­lamic Bank in co­or­di­na­tion with the Abu Dhabi Department of Fi­nance and Department of Eco­nomic De­vel­op­ment, have put to­gether 17 fi­nan­cial ini­tia­tives for in­di­vid­u­als and SMEs. All Abu Dhabi banks had an­nounced last week various mea­sures to sup­port their cus­tomers af­fected by coro­n­avirus out­break.

Re­lief for re­tail cus­tomers in­clude pay­ment de­fer­ral of 3 months for re­tail loans of af­fected cus­tomers with zero charges and in­ter­est waived for the de­fer­ral pe­riod, in­ter­est-free in­stall­ment of­fers on loans for school tu­ition un­til June 30, a pay­ment de­fer­ral of one month will be avail­able on re­quest for all cus­tomers hold­ing personal loans, auto loans and / or mort­gage loans with no service charge, re­duc­tion in bank charges by 50 per cent on early set­tle­ment of loans for eligible cus­tomers (un­til June 30).

An in­crease in the Loan to Value ra­tio (LTV) by 5 per cent for first-time home buy­ers, full re­fund of pro­cess­ing fees for for­eign cur­rency cred­its on cards for due to can­cel­la­tion of travel plans and re­duc­tion of 50 per cent in late pay­ment charges on credit cards. For SME cus­tomers, these banks will de­fer up to three months of in­stall­ments for all loan types. The banks are also work­ing with all cus­tomers to as­cer­tain the COVID-19 im­pact on their cash flows, to pro­vide fur­ther sup­port in loan re­struc­tur­ing or de­fer­ment.

De­fer in­stall­ments ( prin­ci­pal & in­ter­est on ex­ist­ing loans (personal, auto and mort­gages) and credit cards for up to 3 months for eligible cus­tomers un­til June 30, 2020 with no ad­di­tional bank charges. Halt fore­clo­sures on mort­gages for de­faulted cus­tomers un­til Septem­ber 30, 2020.

Halt sus­pen­sion of bank ac­counts for re­trenched cus­tomers un­til June 30, 2020. Re­fund credit card pro­cess­ing fees in full for for­eign cur­rency trans­ac­tions committed af­ter Jan­uary 1, 2020, as­so­ci­ated with can­cel­la­tion of travel plans. In­stall­ment pro­grammes with no service fees for util­ity bill pay­ment un­til June 30, 2020.

De­fer in­stall­ments on new loans (personal, auto & mort­gages) and credit cards for up to three months for eligible cus­tomers un­til June 30, 2020 with 50 per cent re­duc­tion in as­so­ci­ated bank charges. Re­duce in­ter­est charges on new loans and credit cards for eligible cus­tomers based on new pre­vail­ing rate. Re­duce bank charges by 50 per cent on early set­tle­ment of loans un­til June 30, 2020.

Re­duce re­quired down-pay­ment by 5 per cent for first- time home buy­ers. In­ter­est-free in­stall­ment plans for school tu­ition with waiver of service charges or 0 % in­ter­est loan un­til June 30, 2020

De­fer in­stall­ments on ex­ist­ing bor­row­ing up to 3 months for eligible cus­tomers un­til June 30, 2020 with no ad­di­tional bank charges. Re­duce bank's mer­chant service fees (credit card trans­ac­tions) by 50 per cent for eligible SME cus­tomers with us­age be­low Dh5 mil­lion per an­num un­til June 30, 2020. Re­duce bank­ing fees and charges on zero bal­ance ac­counts up to 50 per cent for eligible cus­tomers.

Re­duce min­i­mum aver­age bal­ance re­quire­ments for all SME ac­count cat­e­gories to up to Dh10,000 per month for eligible cus­tomers. De­fer in­stal­ments on new bor­row­ing for up to 3 months for eligible cus­tomers un­til June 30, 2020 with 50 per cent re­duc­tion in as­so­ci­ated bank charges. Re­duce in­ter­est charges on new bor­row­ings based on new pre­vail­ing in­ter­est rates for eligible cus­tomers.

Re­duce bank charges by 50 per cent on early set­tle­ment of ex­ist­ing bor­row­ing for eligible cus­tomers un­til June 30, 2020.

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