(Yicai Global) April 7 -- As several cities in China are plunged into lockdown amid a new wave of Covid-19, a number of Chinese banks have said that they will grant those struggling to repay their personal housing loans on time to apply for a deferral, China News Service reported today.

Different lenders, though, have different policies depending on geographic location and the duration of the lockdown, the report said.

Industrial and Commercial Bank of China is allowing those living in locked-down areas such as northeastern Jilin province to apply for a postponement if they cannot make their mortgage repayments on time, a customer service agent said, adding that their credit standing will not be affected by such an application.

“But it is a temporary policy, which may no longer apply once the lockdown ends,” the employee said.

China Construction Bank is letting those confined to their homes apply for mortgage payment deferrals, and the period can be extended to up to 28 days in Jilin, according to its customer service department. Customer service will help applicants contact the manager of the lending branch in order to register, as the outlets in locked-down areas are closed.

Customers in Jilin can apply to postpone repayment of housing loans, but there are no similar policies in Shanghai, Bank of China said.

However, a joint-stock commercial bank said that it is not offering mortgage relief amid the pandemic. According to its regulations, a one-day delay in repayment will affect the borrower’s credit record, and a three-month delay will lead to legal proceedings, so people should make sure they pay on time.

The country’s central bank requested financial institutions back in February 2020 to flexibly adjust personal loan repayments such as mortgages and credit cards and to extend the repayment period for those directly affected by the pandemic, such as those who have lost their source of income, those hospitalized or in quarantine and those working on the frontline.

Editor: Kim Taylor