On 24 April, the Credit Union Board of Directors approved extending automatic loan payment deferrals from May-July 2020 in order to provide Members the additional assistance needed to address hardship resulting from the effects of the COVID-19 virus. These loan payment deferrals will be for Members in good standing.
When the Cayman Islands first began experiencing the effects of the COVID-19 in March, our Board of Directors quickly implemented a set of initiatives to address financial hardships Members were beginning to encounter. These included lowering interest rates as well as loan payment deferrals. There was an automatic deferral for April and an up-to-3-month deferral on a case-by-case basis.
However, it has now become evident that Members need further assistance to endure the financial hardships while the battle against the spread of COVID-19 continues. As such, in addition to the automatic loan payment deferral for April, we will extend automatic payment deferrals an additional 3 months from May through July. This is a total of 4 months of automatic deferrals for all Members in good standing.
While these loan payment deferrals provide needed assistance during this very difficult time, we would like to advise Members that interest will continue to accrue during the loan payment deferral period. Therefore, if a Member's financial situation has not changed due to the COVID-19 crisis, we encourage Members to continue to pay at least the interest on the loan so that the overall length of the loan term is not extended beyond the original maturity date. Otherwise, the next payment due in August 2020 will be applied first to accrued interest before principal.
Members that wish to continue loan payments between May-July, be they the full amount, or just interest, need to advise the Credit Union of this decision by completing the online form linked below. Otherwise, the payment deferral will be automatic.
For further details and questions, please contact our Loans Department:
815-4222 or 815-4231