Phillipa Nanyondo Byamah, Senior Manager -Special Asset Management, Credit at dfcu
As many Ugandans strive to recover and stabilize both their personal and business finances, dfcu Bank has announced an initiative to support its customers with repayment of loans.
Phillipa Nanyondo Byamah, Senior Manager -Special Asset Management, Credit at dfcu expounds on the details of this incentive and why the Bank is committed to bolstering the financial recovery of its customers.
Below is an excerpt.
Qn: dfcu Bank is offering waivers on interest to ease loan repayment for customers – please expound on this.
Ans: With this initiative, we are offering waivers on interest to our long-standing customers who have loans with us, to help ease the process of repayment and enable them to clear their outstanding debts.
Qn: What is the reason for this offer/ why is dfcu Bank taking this step for its customers?
Ans: As a Bank, we recognize the challenges that our customers have faced, starting with the outbreak of the pandemic last year. Our role is to be an enabler to recovery for our clients whether that be individuals or businesses.
The concessions we are offering specifically cut down on loan interest amounts, allowing our borrowers to get out of debt faster and in a less strenuous manner. Additionally, clearing these payments will allow customers to acquire full clearance from dfcu Bank which also aids in clearing of their Credit Reference Bureau records (CRB).
Qn: How long will this offer last?
Ans: This offer will run for three (3) months starting in October up to end of year.
Qn: Is this offer open to all customers who currently have loans with dfcu Bank?
Ans: Currently, we are reaching customers whose debts extend beyond 455 days past their due dates.
We’re also targeting offering this to customers who have Unsecured Loans with us.
Qn: In what ways does a dfcu Bank customer, who has an unpaid loan, benefit from taking up this
Ans: Any customer who takes up this initiative will be enabled to clear up their debts faster than they would have. With a waiver from the bank, repayment becomes easier, and the pressure is taken off the customers. We believe that at a time when a number of people are struggling financially, being able to spend less even in loan repayment is a welcome intervention.
Qn: What happens after a customer expresses interest in this offering?
Ans: Firstly, customers can express interest in writing, via email or even by visiting any of our branches countrywide.
Our teams will then work out the outstanding debt and importantly, be able to show the customer how much will be waived off by the Bank and the amount that will be subject to repayment.
Customers who will be making lump sum payments will consequently receive a better/higher waiver than customers who choose to make multiple payments over a longer period of time.
Qn: How is dfcu Bank supporting other customers who have loans with the Bank but are not eligible for this repayment initiative?
Ans: In line with the guidelines issued by the Bank of Uganda (BoU), we have assisted customers in getting moratoriums on their loans – a process that we started last year. Many customers who were eligible for this took on restructures and received significant relief for their loans’ repayment. We also restructured the loan facilities of many clients, giving them room to make phased payments that matched their new financial positions.
Customers who may not be in the above category but would want to make one-off payments including those that might be having secured loans with us, will be reviewed, and addressed on a case-by-case basis.