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Due to the second closure: another outline for deferring loan repayments to banks - Walla! Business

2020-09-26T22:14:38.076Z

The Bank of Israel and the banks have agreed that the final date for submitting applications for deferral of loan repayments will be extended until the end of December. Households will be able to defer repayments of loans of NIS 100,000 for up to 9 months.



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Because of the second closure: another outline for deferring loan repayments to banks

The Bank of Israel and the banks have agreed that the final date for submitting applications for deferral of loan repayments will be extended until the end of December. Households will be able to defer repayments of loans of NIS 100,000 for up to 9 months.

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Saturday, 26 September 2020, 22:13

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A new Corona closure brings the Bank of Israel and the banking system to decide on a third outline for a horizontal postponement of loan repayments, taken by the public prior to the crisis.

The central bank and the banks have reached an understanding that the deadline for submitting applications for deferred loan repayments will be postponed from the end of October until the end of December.

So for the time being, the public will be able to submit applications by the end of the year for deferral of repayments of ordinary consumer loans (of up to NIS 100,000 balance), mortgages and loans for businesses.

By the end of the year, applicants will be able to receive a deferral of repayments or extend a deferral that has already been granted to them, as long as they have not exhausted it (except in regular consumer loans).



In addition, the new outline includes one significant change, mainly in relation to "ordinary" consumer loans, which are not for housing, and the balance of which is up to NIS 100,000.

According to a source in the banking system, borrowers on these loans will be able to extend the "grace" period, during which the Queen does not make repayments, from a maximum period of 6 months for an additional period of 3 months, and a total period of up to 9 months.



"Mortgages have many solutions for the borrowing public, while ordinary consumer loans have a big problem for borrowers. In fact, the postponement they continue is like paracetamol for cancer. The state must provide borrowers with lost income with solutions that will return them to the labor market. "In the first closure, many took advantage of the ability to defer repayments even if they had the financial ability to meet the repayments. In time, many returned to pay the payments as usual, while there are still many who take advantage of the possible deferral of repayments."

This is a public that will probably also need the assistance from the new outline.

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Realized there was no choice.

Governor of the Bank of Israel Amir Yaron (Photo: Reuters)

Recall that the first outline for deferring loan repayments happened shortly after the height of the Corona crisis and the first closure, and in July a second outline was published that extended the deadlines.

The option of granting deferred loan repayments provides cash flow to borrowers who have lost their source of income.

However, the borrower has actual costs deferred and even though it is done without a commission, it increases the monthly repayment on housing loans (in order to repay the bank by increasing the regular monthly payment) or extending the loan period until repayment is repaid on time ).

That is, the refunds are not canceled but only deferred.

It is therefore advisable to check the cost involved in extending the loan (e.g. in regular consumer loans) or increasing the monthly repayment (e.g. in mortgages).



It should also be noted that the outline includes all banks, but not loans from non-banking entities, including credit card companies, which also hold consumer loan portfolios for the general public.

It is also a crystallizing outline that has not yet become final and is in the final drafting process, when according to a source, the neat outline will probably be published after the holiday.

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Source: walla

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