Banks have begun reassessing customers' financial situations six months on from offering 900,000 Australians loan repayment deferrals.
By the end of July, it's estimated repayments had resumed on 109,000 loans worth $41 billion, with customers having been given some much-needed breathing space as the coronavirus pandemic smashed the economy.
At least 450,000 loan deferral customers will be assessed in coming weeks as they approach the end of their deferral in September and October.
It's expected 65,000 small and medium business loans will be assessed by the end of September, with 80,000 mortgages set to face checks in the same period.
Australian Banking Association chief Anna Bligh said a range of steps would be offered to customers.
Those who can resume repayments at the end of their deferral will be required to do so.
Those still in difficulty will be able to work with their bank to restructure or vary their loan, including converting to interest-only payments for a period of time, or extending the term of the loan.
Banks may offer a further four-month deferral in some cases but this won't be automatic.
Customers unable to pay their loan over the longer term will be offered tailored assistance.
"Customers know what's best for them," Ms Bligh said.
"It's the bank's job to set out all the options and implications and ensure customers have the information and the time to make the right decision to suit their needs."