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.|
All our Personal Loans and Student Loans qualify for the Personal Loan Payment relief plan. However, Revolving Loans, Express Loans and Instant Loans are excluded.
If you have a Personal Loan and Student Loan are not in arrears on your repayments you may apply for the Payment Relief Plan.
The Personal Loan Payment Relief Plan will give you a 3-month non-payment period during which you will not have to make any repayments on your loan account.
During this period your loan instalment, service fee and credit life fees (if applicable) will accrue monthly and be capitalised into your loan account. We will extend your agreement term to ensure that your new instalment amount is either the same or lower than your current instalments.
Interest, fees and credit life fees (if applicable) will be still charged but you do not have to pay them during the payment relief period. At the end of the 3 months you will begin paying your new instalments.
Your credit rating should not change as a result of the Personal Loan Payment Relief Plan. Please contact us if you have any problems. email@example.com
Please note: Whilst you do not have to pay your instalment over this period, you may still make additional payments - we encourage you to do so as this will reduce your overall cost of credit on your account.
At the end of the Payment Relief Period the term of your Personal Loan will be increased to accommodate the skipped instalments, interest, fees as well as Credit Life premiums (if applicable) and to ensure your new instalments are the same or less than your current instalments.
After your Payment Relief Period new monthly instalments will be calculated based on your accrued fees, interest as well as Credit Life premiums (if applicable). Your loan term will be increased to make sure your new instalments will be the same or slightly less than your current instalments.
No additional documentation is required. Just apply for the payment relief and we will assess your application and notify you via SMS if you have qualified.