Consumer Loan Deferrals During the Corona Crisis – Questions and Answers
Consumer Loan Deferrals During the Corona Crisis Questions and Answers Berlin, 30.03.2020 by Peter Kleinwächter Draft legislation to limit the impact of the COVID-19 pandemic in the civil, bankruptcy and criminal court systems 1. What loans are covered by the legislation? Consumer loan contracts concluded prior to 15 March 2020 are covered. A consumer loan contract is a loan contract which a consumer enters into to borrow funds for private purposes. 2. Are business entities allowed to take advantage of the deferral rules? Only consumer loan contracts as defined above fall within the scope of the deferral rules. Whether a specific loan contract is covered by the rules depends on the borrower’s status as consumer. Loan contracts concluded for private purposes may be covered even though the individual is also a business entity, for example if a restaurant operator takes out a loan contract to finance the purchase of a home. Loan contracts concluded by a business entity...
