The layoffs caused by the coronavirus have overwhelmed unemployment funds and many Finns are having personal finance difficulties. As part of our partnership with Akava, Danske Bank is offering a layoff loan, i.e. financing for a temporary need at a reduced margin and without any origination fee, to existing customers who are members of a trade union affiliated to Akava.
As its name suggests, the Layoff loan is intended for Danske Bank customers for are temporarily suffering financially as a result of the coronavirus crisis and who are members of an Akava affiliate union. The loan, which may range from €2,000 to €15,000, is unsecured and the interest margin is 2.9% (normally 4.9-7.9%)*. The offer will continue on a temporary basis until the end of 2020.
”The coronavirus crisis is exceptional in the sense that employment has declined at a record rate as a result of layoffs and this has understandably overwhelmed unemployment funds. Banks can in their own role ease their customers’ situation when their concern about loss of earnings is a temporary one. Loan repayment holidays have already been introduced and these will help many families over the layoff period, but then flexibility is aimed only at those with a housing loan. We have long worked together with Akava and together want to help are customers who are in difficult financial circumstances regardless of their form of housing,” says Riikka Laine-Tolonen, Head of Retain Bank Finland at Danske Bank.
By directing the Layoff loan at existing customers who have adequate ability to repay and who have managed their banking without reproach, Danske Bank aims to ensure that credit applications are processed quickly. b
“When your own financial situation suddenly becomes more difficult, it’s important that help is quickly available. Using credit to fund life is not a long-term solution, but in temporary difficult circumstances we want to help safeguard the financial peace of mind of our customers.”
If for example, a customer takes out a loan of €7,500 for three months, the total cost is less than €63.*
“In Finland, already some half a million employees are affected by worker consultations (yt-neuvottelut) or have been temporarily laid off. Many of or union members are facing a completely new situation as a result of the coronavirus crisis. It’s a great gesture that in addition to help from union and Akava member unemployment funds Danske Bank has also responded quickly and is now offering extra support and security on top of existing benefits,” says Risto Kauppinen, Director at Akava.
Because of the special conditions caused by the coronavirus, Danske Bank is providing extended support and advisory services to all retail and business customers who are suffering from the financial impacts of the pandemic.
Here are some examples of Danske Bank’s options for customers who are suffering from the sudden impacts of the coronavirus and who meet the general creditworthiness criteria: