It seems consumers are recovering from the impact of the COVID-19 pandemic – with deferred loans now “back to normal,” according to the New Zealand Bankers Association (NZBA).
The NZBA revealed that over two-thirds of consumer loans that had principal and interest repayments deferred due to the impact of the pandemic were now “back to normal,” and nearly 40% of consumer loans that had reduced repayments were also now back on track.
“As we near the end of this extraordinary year, it’s great to see that people who took up offers to defer or reduce their loan repayments are now getting back on track,” said NZBA chief executive Roger Beaumont.
“Nearly 70% of deferred consumer and business loans are back to full repayments. People who reduced their repayments to get through are also making good progress.
“This shows that people who took loan deferrals or reduced their repayments understand why it’s a good thing to restart repayments if they can. It also shows how banks are working proactively with affected customers to support them through tough times. Banks will continue to work with affected customers to help get them back on track.”
As of October 31, 69% of consumer loans (including home loans) that had deferred all repayments were back to full repayments, and 37% of consumer loans that had reduced repayments were back to full repayments.
Meanwhile, 69% of business loans that had deferred all repayments were back to full repayments, and 50% of business loans that had reduced repayments were back to full repayments.