PrivatBank introduced credit holidays on all credit cards on March 1.
Banks of Ukraine canceled penalties and penalties for overdue payments on loans. In March, banks allow not to pay on loans to individuals. However, they note: if possible, it is better to pay off the loan on time. ;, which means that clients received certain benefits in the issue of repayment of loans previously received from banks. For example, PrivatBank, which previously actively credited Ukrainians with credit lines on cards, introduced credit holidays on all credit cards from March 1.
«Preferential terms of the agreement without a mandatory minimum payment are valid until June 1, 2022 for credit cards: Universal Card, Universal Gold Card and premium cards. Credit holidays will also apply to cards that had a delay in obligations for up to 90 days inclusive. For the period of credit holidays, customers can deposit funds to a credit card at their own request,» the bank said in a statement. Other banks have also joined in providing special conditions for repaying consumer loans.
Preferential conditions: in which case individuals may not pay on a loan
Banks were able to provide customers with a deferral of loan debt repayment, thanks to NBU Resolution No. 23 of February 25, 2022, which states that the National Bank allowed banks not to take into account non-payment on loans as delinquency during wartime and 30 days thereafter if non-payment is related to Russian aggression.
«The National Bank recommended that Ukrainian banks establish, at least for the period until March 31, 2022, the so-called «credit holidays» for all individual customers of banks with loans or credit card debt. The National Bank establishes minimum requirements that all banks must follow, while each bank can establish its own more loyal conditions at its own request», — explained the board member for retail business development«OTP Bank» Oleg Klimenko.
That is, now, during martial law and within 30 days after it, banks have the right to set loyal conditions for customers, allowing not to pay the loan, and no fines will be charged to the client for this.
«The Bank will not apply any penalties in case of late payment of the required payment. We are working to expand support for our clients in the conditions of martial law», — reported in «Credit Agricole Bank».
Also, borrowers are not threatened by the opening of enforcement proceedings for the seizure of property due to overdue debt.
«In accordance with the requirements of the National Bank of Ukraine, Kredobank does not calculate the delay in late payments on loans that should have been made by the client, during the martial law and for another 30 days after its completion, does not charge fines or penalties for non-performance or improper fulfillment by borrowers of their obligations under the concluded agreements on credit and leasing operations. Also, the bank will not take any other measures aimed at repaying overdue debts under the concluded agreements on credit and leasing operations at the expense of borrowers' funds/property», says Orest Korenovsky, Executive Director of Kredobank's Risk Management Department.
«Each bank regulates the relief on consumer loans at its own discretion, with the exception of the legislative restrictions stipulated by the NBU on the ban on increasing interest rates, on the application of penalties», — said the director of the retail business department of the bank «Pivdenny» ; Igor Fomichev.
Credit conditions: March payments are postponed to April
The fact that the NBU allowed banks to establish credit holidays for clients does not mean at all that all banks have the same conditions for borrowers. However, all surveyed banks confirmed that it is possible not to make a loan payment in March.
The banks clarify that the payment is postponed to April, and not canceled completely.
«It should be noted that interest on the loan continues to accrue, and debt forgiveness does not occur. Therefore, customers who have the opportunity to make their payments on loans should do this so that the debt on the loan does not increase. When paying such a payment, it will be accepted and credited to the repayment of the loan», Oleg Klimenko notes.
In general, banks are ready not only to postpone the deadline for making a loan payment, but also to temporarily cancel the so-called contractual write-off, when the amount of debt is automatically debited from the client's current account.
«Kredobank decided not to carry out automatic contractual debiting of funds from current accounts of customers to repay debts (loan amount and interest), including regular payments, under consumer loan agreements, namely: cash loans, mortgage loans, loans on a car and/or on the security of a car. At the same time, penalties and other penalties will not be charged for late payment by customers under loan agreements», Orest Korenovsky explained.
Banks also say that credit holidays are set automatically, that is, to receive a deferral of payment for loans, there is no need to contact the bank.
«As for mortgages, car loans and cash loans, such borrowers are exempt from paying the body of loans and interest from March 1 to May 31. Credit holidays start automatically, for their introduction you do not need to contact the bank», — reported in Oschadbank. And the banks also say that preferential terms for repaying loans are the same for all customers throughout Ukraine. That is, it makes no difference whether the client was served in Kharkiv or in Ternopil, special conditions for loans now apply throughout the country.
Debt repayment features: how much and where to pay on a loan
According to Igor Fomichev, according to the credit cards of the bank «Pivdenny» a mandatory minimum payment of UAH 0 was introduced for three months, the interest rate remains unchanged, and the validity of credit limits is automatically extended until May 31, 2022, while maintaining the automatic reduction mode.
«For consumer loans, including mortgages, the following repayment mechanism has been established for three months: payment on the principal amount of the debt is 0 UAH; regular payments on the loan body for the vacation period, including the payment for February 2022, can be paid until May 31, 2022; interest and commissions accrued during the period of the credit holiday can be paid until May 31, 2022; the validity period of loans, the expiration of which falls on the period until May 31, 2022, except for loans under the «Credit against deposit» program, is extended until May 31, 2022 without additional signing of applications, additional agreements to the loan agreement, guarantee agreements, collateral, mortgage», — says Igor Fomichev.
If the client has the opportunity and desire to make a payment on the loan, the methods of payment on the loan remain the same as they were before — depositing funds through the cash desk or terminals of the bank (partners bank), transfer from your own card account to a credit account.
«For all clients, options for repaying loans through a bank branch are available (the current list of branches that work can be obtained on the official website of the bank), through replenishment of your own card and subsequent repayment through the bank's Internet bank or through the network of self-service terminals of the bank's partners», notes Oleg Klimenko.