Sberbank of Russia : Half a million private customers apply to Sberbank for loan restructuring during pandemic

Almost 500,000 customers have addressed Sberbank to restructure consumer and mortgage loans as well as credit card debts during the crisis from late March until mid-June 2020. The main reason for submitting applications was the income decrease due to the coronavirus and related restrictions.

Maxim Degtyaryov, Vice President, Head of the Distressed Assets Department, Sberbank,

'Part of our customers faced difficult life situations in recent months due to objective reasons. Our main goal is to help these customers since the very beginning of their financial difficulties. Half a million Russians submitted 750,000 restructuring applications totaling about RUB 460 bln, which means that some customers have several loans at once, for example, a mortgage and a consumer loan. These figures include Sberbank's proprietary hardship program and government repayment holidays that are very required among our customers, with 92% of applications approved.

But we would like to pay your attention that the customers who are already taking advantage of repayment holidays under the government support program and having 90 days for providing the paperwork, but running out of time, should hurry up to meet the deadline. If a borrower who applies for government support won't do it, the bank will have to cancel their grace period, and the customer will have past due debts. If a customer has no such documents for some reason, Sberbank can offer its own repayment holiday program. The main thing is to address us in time and avoid defaulting, as you need a timely and trust-based dialogue with the bank to solve any financial difficulties.'

The Russian government introduced Federal Law No. 106-FZ on granting repayment holidays to support citizens during the pandemic. From April 3 to September 30, 2020, the bank's customers whose income decreased by more than 30% compared to the average monthly income they had in 2019 could get repayment holidays on loans and submit proofs to the bank within 90 days. The term for those who applied for loan forbearance and deferment in April expires in July.