Polaris Bank waives loan default charge for customers

Polaris Bank says charges would be waived for loan defaulters for three months.

The bank said the waiver would be effective from March 1, 2020.

The Central Bank of Nigeria empowers deposit money banks to charge 1% penalty for defaults on loan repayments.

“While CBN’s guide to bank charges allows for 1% flat penalty for loan repayments due and not met, we have eased the pressure by waving this charge for our loan customers during this trying period of COVID-19,” a notice by the bank read.

“This forbearance, which is for a period of 90 days takes a retroactive effect from March 1, 2020.

“Polaris Bank will continue to support and partner with you beyond COVID-19.”

After the first case of COVID-19 was confirmed in Nigeria, the CBN had directed banks to restructure loan terms and reduced interest rates of its intervention programmes has been cut to 5% from 9%.

“The CBN hereby grants all deposit money banks leave to consider temporary and time-limited restructuring of the tenor and loan terms for businesses and households most affected by the outbreak of COVID-19 particularly oil & gas, agriculture, and manufacturing,” Godwin Emefiele, CBN governor, had said.

The CBN said beneficiaries of its intervention facilities have been granted an additional one-year moratorium on principal repayments effective March 1, 2020.