Corona Update: Loan Payment Postponement

Corona Update: Loan Payment Postponement

Apr 1, 2020 by AmwalCom

During this Corona pandemic, many individuals and businesses will suffer from a loss of income and are probably having cash flow issues 💲. At the same time many of us have commitments like loan payments to pay for the bank 🏫.

Naturally, our financial priorities will shift from paying our bank commitments to getting our basic needs 🛒. However, any late payments will definitely affect our credit history and subsequently our ability to secure finance in the future. 

To address this concern, the central bank of Jordan recommended Jordanian banks to postpone personal loan, housing loan and credit card payments 💳🛍 for both individuals and businesses who will be affected and who will not be able to fulfill these payments on time.

This decision includes both the previously rescheduled loans and loans for defaulted clients too 🚫.

This means that your bank might agree to postpone your loan payments for a certain period till the end of 2020. 

The central bank of Jordan directed banks not to impose any late payment fees nor loan installment postponement fees on any postponed loans during this period 💵. Moreover, any postponed loan is not to affect the credit rating of clients by CRIF. 

You still need to take into consideration that any postponed payments will usually be moved to the end of the loan term, and since payments will be made by the end of the term 🗓; this usually means that the loan interest may increase 📈

Banks took two different methods applying the new rule: some banks directly postponed payments for all its clients and asked clients unwilling to postpone to contact the bank 🏫. Other banks asked clients who desire to postpone their payments to contact them ☎️, else no payments will be postponed.

Some banks have mobile applications and platforms to help clients postpone their payments online 📲. For most of the banks, clients are requested to call the customer support unit of their bank 📞. 

It is important to remember that this is only a recommendation from the central bank and it is not obligatory. This is because postponement decisions will be made by each bank independently and will take into account client's individual cases and the bank policy.

AmwalCom advice: Do not postpone your loan payments if you can afford to pay it now! 🤫

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