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In order to provide immediate help as well as support long-term recovery efforts, Westpac committed $50m towards flood relief in addition to its existing disaster and drought relief funds. The new fund not only allows customers to defer repayments on existing loans and equipment financing for up to 12 months, but also makes heavily reduced variable interest rate loans of up to two million available to eligible customers on an interest only basis for up to three years.
The concessional loans being made available to NAB customers provide discounted loans to support repairs and restocking for up to five years in addition to asset financing at a reduced rate for equipment replacement. NAB has also acknowledged the unusual circumstances through enabling decisions about credit to be made quickly and locally so that each customer can decide what is best for their future along with their banker.
Westpac national agribusiness manager Steve Hannan explained that the business impact of the heavy losses sustained throughout the region may not be calculated or fully understood for up to six months. As such, Westpac felt it was essential to provide practical solutions to its customers to see them through this challenging time.
NAB chief customer officer Anthony Healy expressed a similar sentiment saying that while regional businesses and agribusinesses are “incredibly resilient”, government and banks must “work together to help them through this”.
Both banks are lending additional support to all those impacted by the flooding through donations to various relief organisations. Westpac recently announced a combined $250,000 donation for the Salvation Army and Foundation for Rural Regional and Renewal (FRRR), while NAB made a $100,000 donation to the Australian Red Cross.
