Payment Break

Payment Breaks

For businesses impacted by Coronavirus

Important Customer Information in relation to Payment Breaks

Capital Payment Break - Interest only repayment

-       Interest will continue to accrue and be payable on your Credit Facilities and charged quarterly in accordance with the existing terms and conditions which currently apply to your Credit Facilities. 

-       You will be required to pay the interest repayments on your loan during the Capital Payment Break

-       The capital will remain outstanding and must be repaid after the interest only period expires.

-       A Capital Payment break will result in an additional cost of Credit if you choose to extend your original repayment Term.

-       Alternatively you can increase your monthly repayments to ensure the Credit facility is repaid within the original term which will impact the overall cost of credit.

 

Full Payment Break (Neither capital nor interest paid)

-       Interest will continue to accrue in line with the existing terms and conditions which currently apply to your Credit Facilities.

-       You won’t pay any interest or capital on your loan during the period of the break. 

-       A Full Payment Break will result in an additional cost of credit, which is the total cost of deferring the capital and interest repayments during the period. This will result in interest being charged on the interest accrued during the Full Repayment Break.

 

At the end of any Payment Break period your normal monthly repayment may be recalculated which means that your monthly repayment will be greater than it is now or alternatively the term of the Credit Facilities may be extended. 

If you choose to extend the term of your Credit Facilities the amount of interest payable and amount owing on the related Credit Facility will increase.

A bank agent will contact you by phone to discuss your request for a payment break, and will outline what this will mean for you.

Please tick this box to acknowledge acceptance of the conditions outlined in the Important Information above

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