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Lenders are providing emergency assistance to customers and businesses in response to widespread flooding in parts of Queensland and NSW.
Banks are offering support to customers in western Queensland and parts of NSW affected by heavy rainfall and flooding.
Major flood warnings are currently in place for parts of western Queensland and north-western NSW after a year’s worth of rain fell in a few days in some places.
All four major banks have assistance programs in place for those affected.
Commonwealth Bank of Australia (CBA) is among the lenders providing special arrangements for affected customers.
The major’s emergency assistance program includes customised payment arrangements for mortgages, business loans, and personal loans.
Waived fees and charges, temporary overdrafts, additional loans, and emergency credit limit increases are also available.
CBA’s retail banking services group executive, Angus Sullivan, said: “We want our customers to know that we are here to help them. We are thinking of everyone in the impacted regions and have several measures in place to support affected customers and employees through this challenging time.
Westpac and its subsidiary St.George are offering similar disaster relief assistance in what the latter said would provide “financial breathing room” for customers.
Westpac business customers can also access cash flow support via temporary overdrafts for small businesses up to a maximum of $15,000 and larger businesses up to a maximum of $50,000, depending on the size and needs of the business.
Business customers may also be able to defer loan repayments and receive monthly terminal fee refunds.
Consumer customers may apply to defer home loan repayments while those experiencing hardship may halt interest accrued on unsecured credit products for a period.
Similarly, Australia and New Zealand Bank (ANZ) is offering short-term payment relief on mortgages and loans and waived fees for restructuring business loans and for accessing term deposits early.
National Australia Bank (NAB) is also offering various relief options including $1,000 grants, loan deferrals, reduced repayment arrangements, and waived fees.
“Many communities have been hit by the worst flooding in more than 50 years,” said Westpac national general manager, regional and agribusiness, Peta Ward.
“Farmers are now facing widespread livestock losses and infrastructure damage that represent generations of work swept away.
“In response to these floods, we’re launching a comprehensive disaster relief package to provide immediate financial assistance to those affected. By providing financial breathing room, we hope affected Queenslanders can focus on what truly matters, the safety of their families and friends, and the recovery of their communities.”
Many lenders have been offering support to impacted borrowers, with the Australian Banking Association (ABA) urging customers who are facing financial difficulty as a result of the floods to reach out to their bank as soon as possible to discuss the support options that are available.
ABA CEO Anna Bligh said: “Our banks have highly experienced specialist teams ready to assist with any financial concerns or inquiries customers may have.
“It doesn’t matter if you’re an individual, a farmer or a business customer, banks have a range of options from repayment deferrals through to loan restructuring to help you get back on your feet.”
Banks’ response to major flooding follows the support provided after ex-Tropical Cyclone Alfred caused significant damage estimated to cost more than $1 billion in total.
The broking industry has also offered support, with aggregator Loan Market Group (LMG) raising funds for those affected at its second annual Growth conference earlier this week.
[Related: Banks and industry bodies step up support in wake of cyclone]
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