Tier one lender, Guaranty Trust Bank (GTBank) has gone a step further in its efforts to alleviate the heat of the Coronavirus pandemic on the operations of its debtors.
This time, the bank has placed a hold on its loan repayment plan for all Small and Medium Enterprises (SMEs) that have obtained any of its credit facilities.
The lender explained that businesses that obtained Food Industry Credit and Fashion Industry Credit would be issued a 90-day moratorium from repayment of loan. GTBank also afforded individuals who obtained Quick Credit for business the same benefit.
Small businesses that fall within the aforementioned categories don’t have to repay their loan in the next three months.
“We have put on hold all repayment on SME laons as a result of the COVID-19 pandemic and because small businesses have had to stay closed to stay safe, we are giving a 90-day moratorium on repayment of loans,” the bank stated.
President Muhammadu Buhari had announced a 14-day lockdown in order to check the spread of the COVID-19 pandemic, a development that has disrupted business activities.
The informal sector and the self-employed have been the most affected, as most of them had to shut down their businesses, compared to large corporations whose workers have been working from home.
The moratorium by GTBank comes as succour for the small businesses that haven’t enjoyed much relief from President Buhari’s administration. And with the possibility of extending the lockdown, the GTBank moratorium on loan repayment is expected to cover the extension.