Guaranty Trust Bank has placed a hold on its loan repayment plan for all Small and Medium scale Enterprises (SMEs) that have obtained credit facilities from the bank.
The bank made this decision to ameliorate the effects of the Coronavirus pandemic on business operations of SMEs amidst the lockdown.
It was stated that businesses that obtained Food Industry Credit and Fashion Industry Credit would be issued a 90-day moratorium from repayment. GTBank also offered individuals that obtained Quick Credit for business the same benefit.
“We have put on hold all repayment on SME loans 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 said in a statement released on Sunday, 12th of April.
This means that small businesses that fall within the aforementioned categories don’t have to repay their loan in the next three months but the interest rates on the facilities will still be paid. The moratorium by GTBank comes as a welcomed aid to the Small and Medium businesses that have been majorly affected by the Federal Government-imposed lockdown for safety in major business states such as Lagos and Abuja. With the lockdown expected to be extended in the next couple of days, the moratorium provided should be enough to cover the period of extension.