Clarien Bank is to automatically defer payments for three months in respect of all

residential mortgages, personal loans and commercial loans of less than $2 million that meet basic qualifying criteria, the organisation announced.

A spokesperson said: “In response to a broad and deep Covid-19 pandemic financial impact on the community, Clarien is changing its approach to how it provides relief to clients regarding their loan payment arrangements in order to more quickly deliver the financial support that many borrowers and households need.”

Clarien said borrowers whose loan accounts are in good standing will automatically be granted a deferment of principal and interest payments effective from April 1 for the months of April, May and June and will not have to make loan payments during that period.

The bank said clients who have already made Covid-19 relief requests to Clarien and those who are accepting of the three-month payment deferral on their loan do not need to take any action or contact the bank.

Clarien said that during the payment deferral period interest on the outstanding balance will be added to the loan principal balance, and the term of the loan extended, which will increase the total amount of interest paid over the full term of the loan.

The bank said that clients who do not wish to have a loan payment deferment and prefer to maintain their existing payment schedule are asked to opt out by submitting their instruction to Clarien’s dedicated portal at www.clarienbank.com/covid19.

Butterfield Bank announced a similar, automatic three-month deferral for residential mortgage and personal loan payments last week.

A spokesperson added: “We understand the burden that the coronavirus crisis has placed on our community and our clients, many of whom now face a period of reduced income or higher expenses.

“Our team is committed to supporting our clients however we can, and we hope that this deferment and our change in approach to delivering it will help relieve some financial concerns more quickly and efficiently and allow our clients to continue to focus on the health and safety of their families.

“To be as expedient as possible in assisting those affected, we ask those clients that do not want a payment deferment take a moment to contact us at www.clarienbank.com/covid19.”

Clients with questions are encouraged to call their relationship manager directly or the bank’s client service centre, available Monday through Friday from 8.30am until 5pm, on 296-6969.

The bank reminded customers that online banking is available from home or mobile devices. Set-up can be done remotely by calling the client service centre.

Clarien said in-branch banking is restricted to urgent transactions that cannot be completed online. Amended branch hours at the Hamilton location are now 9am until 1pm, with the 9am until 10am hour designated for “at risk” clients only.