Repayments resume on 91 per cent of deferred loans

Repayments resume on 91 per cent of deferred loans

New data from Australia's largest banks shows 91 per cent of deferred loans have resumed repayment, with just 5 per cent of deferred business loans yet to resume.

From the four major banks, 78,556 loans remain deferred. 60,562 are housing loans, 11,263 are business loans, and the remainder are a mixture of personal loans and credit cards.

According to the Australian Banking Association (ABA) these figures demonstrate an "encouraging sign of recovery", but the organisation notes there are still many Australians who need further support as the pandemic continues.

"Every customer is different. Banks are taking a careful and measured approach that takes into account every customer's individual circumstances", ABA CEO Anna Bligh said.

The ABA says banks will be working directly with those in hardship on an individual basis as part of the next phase of pandemic support to find a tailored solution.

As part of this support, banks have developed an industry-wide, consistent approach to hardship and a new online tool to guide customers in financial hardship and improve transparency.

"This is about ensuring that no customer is left in the dark as we emerge from the pandemic. It represents a compact between banks and their customers as we navigate the uncertain path ahead," Bligh said.

"Customers can expect a thoughtful and compassionate approach, with clear and transparent explanations, regardless of who they bank with. This step-by-step guide will help customers navigate the path out of the pandemic.

"Australian banks will continue to help customers and businesses turn the corner after the pandemic, while providing a fair and compassionate approach to those who can't get back on their feet."

Updated at 12.16pm AEDT on 18 February 2021.

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