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Banks have been updating their emergency support efforts in response to the ongoing damage caused by ex-Tropical Cyclone Alfred.
Lenders and industry bodies have launched fresh support measures and guidance in the wake of ex-Tropical Cyclone Alfred, as flash flooding risks and mass power outages persist.
The storm hit landfall in Queensland on Saturday night after being downgraded to a category one cyclone, battering the coastal region with heavy rain and winds of up to 110km/h.
More than 100,000 households remain without power while flash flooding alerts have been issued for coastal areas.
Banks have also been enacting and updating their existing support efforts, with many already offering customised arrangements or deferrals on credit card payments and loan repayments, along with temporary overdrafts or emergency credit limit increases.
National Australia Bank (NAB) has launched $1,000 disaster relief grants for impacted customers and pledged a $200,000 donation to the Salvation Army.
It is also providing credit card and personal loan relief and will waive establishment fees for restructuring business facilities.
Along with that, NAB is offering reductions and a temporary suspension on home and personal loan repayments, as well as concessional loans to business customers to restructure existing facilities.
Bendigo Bank, the Commonwealth Bank of Australia (CBA), the Australia and New Zealand Banking Group (ANZ), Westpac, and Bankwest have all announced emergency assistance programs.
Bendigo Bank has announced that customers can apply for relief on their home, personal, and business loans for up to three months, along with discounted rates on new personal loans.
Deferred repayments for up to three months are available for credit cards while the bank has committed to waiving interest rate reductions for early withdrawals on term deposits before maturity.
CBA is offering customised payment arrangements for home loans, credit cards, personal loans, and some business loans.
CBA said that brokers who had been impacted by the flood emergency in Australia should contact their relationship manager to better understand their options and apply for assistance.
Meanwhile, its subsidiary Bankwest is providing customised payment arrangements for home loans, credit cards, and personal loans.
Both banks have committed to waiving fees and charges.
ANZ has launched a similar relief package, offering short-term payment relief on mortgages, credit cards, personal loans, and some business loans.
The major has also deployed mobile ATMs to Brisbane and northern NSW.
Westpac’s mortgage, credit card, and business loan customers may also apply to defer repayments.
Similarly, National Australia Bank (NAB) is providing credit card and personal loan relief and will waive fees for restructuring business facilities.
The Australian Banking Association (ABA) has said its member banks are all on standby to offer assistance.
ABA CEO Anna Bligh said: “It doesn’t matter if you’re an individual or a business customer, or both, banks have a variety of options available from repayment deferrals through to loan restructuring to help you get by.
“In the coming days, if you need help from your bank, contact them as early as possible to discuss what tailored assistance can be made available.”
Arca – an industry association focused on consumer credit – is working with lenders to provide customers with support and to help keep customers fully informed of their options.
“Lenders can deal with missed loan payments,” Arca CEO Elsa Markula said.
“If it takes you a while to get in touch, you won’t be disadvantaged – the support will be the same. They can provide hardship assistance, which gets you back on track and doesn’t impact your credit score.”
Financial Counselling Australia (FCA) is offering free financial counselling to help people negotiate hardship payment options for their mortgage and household bills.
Financial counsellors are also assisting with applications for available grants.
The government has announced a $15 million Community Recovery Support Fund in NSW and $15 million in emergency assistance for South-East Queensland local governments to assist with clean-up and early recovery activities.
[Related: Banks roll out loan relief as east coast braces for Cyclone Alfred]
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