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More than $86 billion in new loans have now been provided to close to 80,000 businesses, according to the Australian Banking Association.
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Banks offer $86bn in new loans
19 May 2020
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8 minute read
Over $1.3 billion in SME Guarantee Scheme–approved loans have also now been issued by lenders, short of the $40 billion that the scheme was meant to provide to small businesses.
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With the government guaranteeing 50 per cent of all new loans under the scheme, it was meant to enhance the banks’ willingness and ability to provide credit to SMEs dealing with the COVID-19 crisis.
Despite the low uptake of the scheme, 77,905 new business loans, worth $86 billion, have now been approved.
An additional $7 billion has also now been poured into existing loans.
According to the ABA, the banks have now deferred a total of $211 billion in loans, with business loans accounting for close to 30 per cent of the 703,419 loans.
Australian Banking Association chief executive Anna Bligh also revealed that 429,000 mortgages, totalling $153.5 billion, have now been deferred.
“Banks are here to support customers throughout the crisis and help the economy on the other side as we recover from the devastating effects of this pandemic,” Ms Bligh said.
“Since this crisis started, banks have deferred the mortgage repayments of 429,000 Australian families or a staggering one in 14 of all home loans.
“Australian families who are financially affected by this crisis have had the breathing space they need with a six-month deferral on their home loan repayment while they chart a path through to the other side of this downturn.”
The ABA’s update comes after it revealed that 643,000 loans had been deferred by early May.
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