Loan deferral and finance options for your clients
According to APRA, nearly 10% of loans have been granted temporary repayment deferrals and many of your clients will be approaching the end of their six-month loan repayment deferral. To help you reach out to your clients, we've created three email templates to discuss their finance options.
Banks may extend the deferral for another four months, but it will not be automatic and may not be the most suitable option. The four-month deferral will only be provided to those who genuinely need some extra time.
During these four months, banks will work with clients to find solutions that may include:
- extending the length of the loan
- converting to interest-only payments
- consolidating debt
- a combination of these measures.
It is important to note that ASIC has listed expectations to lenders to make"reasonable efforts" to contact customers before their deferral expires. Attempting to contact the customer once with no reply will not be considered enough, they must try a range of communication channels.
What can you do?
You can stay in touch with your clients and educate them on the process to ensure they don't fall into arrears.
We’ve developed three email templates to help you reach out to your clients and offer them reassurance, support and resources to direct them back to you to discuss their best finance options.
View a preview of the email templates here.
The email templates provide a simple way to reach out to your clients. Follow the below instructions on how to utilise them.
The templates in Digital Marketing Hub are called: How to send from DMH
The templates in Mercury are called: How to send from Mercury