Private customers of SEB will be able to take grace period up to 12 months for mortgage loans and up to six months for leasing and consumer loans

SEB in Latvia has joined the moratorium on private loans proposed by the Financial Latvia Association. According to that, the private borrowers will have more options for a grace period. SEB will offer its private customers, who are facing financial difficulties caused by the Covid-19 outbreak, the possibility to defer the principle payment of the mortgage loan for up to 12 months. Leasing and consumer loan`s principle amount could be deferred for up to six months. The moratorium is based on the guidelines developed by the European Banking Authority.

The banks can apply for the moratorium until June 30, 2020. After the announcing the moratorium today been approved by Competition Council SEB immediately acted to join it. According to the moratorium, the principle payment for the private mortgage loan can be deferred for up to 12 months, and the consumer loan and leasing principle payments - for up to six months. If customers are in a situation, where it is not possible to fulfill the existing obligations towards the bank because of lack of income, reduced income and non-existent savings, SEB welcomes these customers to apply for the grace, also assessing the most suitable grace period.

CEO of SEB in Latvia Ieva Tetere: “We approved the first private grace after the state of emergency on March 17. The support to our customers on regular bases is our constant commitment. In 2009 and 2010, we provided support to more than 15000 individuals, and support to our customers has been a need throughout the previous years as well due to changes in income, job opportunities, and unplanned changes in life, although in terms of numbers it has been small. The need is usually determined both by the situation in the country and by the personal situation of each borrower. More than 1200 private customers have used the opportunity to postpone their principal payments, use the grace since the emergency, and we have applied grace for more than 1500 contracts in total. The total residual value of these private loans is more than 51 million euros. At the same time, I would like to point out that currently only 3% of the total number of private borrowers have applied for support. "

"We are ready to help our customers who are facing the financial challenges caused by the Covid-19 outbreak. Our own long-term support approach was to postpone the principle amount for a maximum of three to six months as the most demanded grace periods. With the bank joining the moratorium, the process of grace for principal payment becomes even simpler: the customer only has to fill in an internetbank application or contact the bank and state the reason for grace related to the Covid-19 virus outbreak, such as reduced income or job loss. We believe that the moratorium created by the industry will provide additional support and assistance to customers and reduce their anxiety about the future,” commented by Ieva Tetere.

The moratorium was initiated by Finance Latvia Association and its members in the light of the Covid-19 guidelines issued by European Banking Authority on 2 April 2020. According to SEB and other financial institutions that have joined the moratorium, such a step will help reduce the negative impact of the pandemic on Latvian households.

The grace implies that borrower still have to pay interest payments. Other terms of the loan are not changed.

A request for the grace can be submitted in the internetbank – Mortgage/Leasing-> My loans-> Application for grace period.

The conditions that borrowers must meet in order to take advantage of the moratorium can be seen here.