The Personal Loan payment relief gives you a three-month break on your personal loan instalments.

During this time, your instalment, Credit Life insurance (if applicable), plus any interest and fees will still be charged to your loan account and as a result, your loan balance will increase. If you choose to take up the three-month payment relief, then the term of your loan will be extended so that your repayments remain the same after the three-month period.

Below is an example of a Personal Loans customer who took up a three-month payment relief when they had 52 months left to pay. To keep their repayments the same, the loan term was extended by nine months. 

Current loan balance R117 787 This is the balance at the start of the payment relief.
Current remaining loan term 52 months This is the number of repayments left on the loan at the start of the payment relief.
Current loan instalment R3 404 This is the current repayment amount on the loan at the start of the payment relief. 
Interest rate 20% per annum Contracted interest rate as per the loan agreement.
Service fee R69 per month Monthly service fee on the account. This will continue to be charged during the payment relief period
Credit Life R500 per month Credit Life premium on the account. This will continue to be charged during the payment relief period.
Loan balance after three-month payment relief R125 542 This is the outstanding balance after the three-month break. It includes the capitalised interest, fees and Credit Life.
New remaining loan term 58 months This is the new remaining term of the loan after the payment relief has been applied. It is made up of the three months skipped and additional six months to cater for the interest, fees and Credit Life associated with the skipped instalments.

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