Bendigo Bank bolsters COVID-19 support with rate cuts for business and home loan customers
Bendigo Bank has cut its variable and fixed business loans to help support our business customers in a challenging time for the sector and the economy.
The Bank has reduced its business loan variable reference rates by 100 basis points for residentially secured business loans and 75 basis points for non-residential and unsecured business loans[i], well above the 25-basis point cut announced by the Reserve Bank of Australia on Thursday. This announcement provides small business customers with further support to help them navigate the challenges ahead.
New small business fixed rates will also be cut by up to 82 basis points[ii], depending on the term and security of the loan, to offer customers certainty during times of uncertainty.
These rate cuts are in addition to:
- A decrease of 25 basis points for business variable rate loans and overdrafts announced in early March
- The Bank’s financial assistance package for all affected businesses
- The Small Business Relief Package which allows eligible businesses to defer principal and interest repayments for six months
- The recently announced $40bn SME Guarantee Scheme, which we are currently working with industry and Government on, to help small business access working capital to assist with the impact of COVID-19.
“Our commitment to our customers and their communities has always been to support them through both the good times and tougher times. Small businesses are the engine room of our economy, employing millions of our fellow Australians and their success feeds into everyone’s success,” said Marnie Baker, Managing Director, Bendigo and Adelaide Bank.
“We are open for business and as an essential service, it is vital we provide our customers with the dedicated and necessary support they need. We have been actively engaging our business customers, and our relationship managers are working closely with them on an individual basis during this challenging period.”
The Bank is encouraging its business customers to contact their relationship manager to discuss the support options available to them. Assistance is also available on 1300 236 344.
Bendigo Bank also reduced its one, two and three-year fixed rates for all owner occupier and investor home loans by up to 70 basis points[iii]. This decision brings the Bank’s Bendigo Express product - backed by Tic:Toc’s instant home loan technology - to 2.29% p.a. for one, two and three-year terms. Variable home loan rates have not changed.
To further support home loan customers financially affected by COVID-19, the Bank’s assistance package also applies to residential mortgages so these customers can now apply for six months relief on their loans.
Bendigo Bank will also be increasing select term deposit rates to provide customers with an attractive investment option in this historically low interest rate environment.
“Today’s announcement, combined with our support of the industry-wide measures and our existing financial assistance package, aims to help our valued customers in their time of need. In the same way we have supported Australians for more than 160 years, we will continue to stand with them and their communities today and in the longer-term as we manage through these challenging times together,” said Ms Baker.
Support for small business, agribusiness and not-for-profit customers
The following financial assistance package continues to be available for all COVID-19 affected small business, agribusiness and not-for-profit customers:
- The waiver of fees for the restructuring or consolidation of loans
- The waiver of merchant terminal fees for three months
- The waiver of interest rate reductions for early withdrawals on term deposits prior to maturity
- The waiver or deferral of a range of fees and charges
- The deferral of interest payments or term extensions
- Small Business Relief Package: existing and new financially impacted small business, agribusiness and non-for-profit customers can defer principal and interest repayments for six months
- COVID-19 SME Guarantee Scheme to support small and medium enterprises to get access to working capital to help them mitigate the impact of COVID-19. The Government will guarantee 50 per cent of new loans issued by eligible lenders to SMEs. The Bank welcomes and will participate in the Scheme, which, combined with other assistance measures, further bolsters the dedicated support options for small businesses during this challenging economic period. Details of the Scheme are being finalised with Government and will be announced soon.
For personal customers
The following financial assistance package is available for all COVID-19 affected customers:
- Home Loan customers can apply for deferral on loan repayments for up to six months
- Waiver of fees for the restructuring or consolidation of loans
- Discounted interest rates on new personal loans taken out by existing Bendigo Bank customers
- Waiver of interest rate reduction for early withdrawals on term deposits prior to maturity.
Following the announcement of the Federal Government’s second stage COVID-19 economic package, the Bank will ensure income support and other payments made by the Government will be processed for customers in a timely manner.
The Government is also allowing individuals in financial stress due to COVID-19 to access up to $10,000 of their superannuation in 2019-20 and a further $10,000 in 2020-21. The Bank is supportive of these temporary arrangements for impacted people and will work with its administrator to establish a smooth process for impacted and eligible people to access their super balances.
If customers are affected by financial hardship and require repayment relief, please call Mortgage Help Centre on 1300 652 146. For all other queries, please contact your local branch or call 1300 236 344.