Coronavirus personal loan payment holiday

Coronavirus is creating difficult times for many and you may be worried about money. We’re here to support you.

What is a payment holiday?

A payment holiday (also known as a payment deferral) is a short break from making your usual personal loan payments due to a period of financial difficulty. If you've been impacted by coronavirus, you can request a three month payment holiday on your Danske Bank personal loan, that won’t impact your credit score.

You'll not make any payments for the period of the holiday, but the interest on your personal loan balance will continue to accrue. This means your loan term will be extended and you’ll pay more interest over the lifetime of the loan.

You can request a payment holiday if;

  • you'll struggle to meet your usual personal loan payments due to coronavirus
  • you have consent from everyone named on your personal loan
  • you’re up to date with your monthly payments (if you’re already behind on your payments please call us on 0345 600 2882).

Is a payment holiday the right option for me?

There are a few things to consider before requesting for a payment holiday, to make sure it’s right for your situation:

  • Currently, we offer payment holidays of up to three months. If you feel that you will need longer term support, or you’re worried about starting your payments again in three months’ time please speak to us.
  • You won't make any monthly personal loan repayments for three months
  • Interest will continue to accrue on your personal loan balance
  • Your loan term will be extended by four months
  • This includes the three months of loan repayments from your payment holiday period and a final installment to cover the additional interest that accrued due to your payment holiday
  • Your loan term will end four months later than originally scheduled and you'll pay more interest overall.

If you would like to request a payment holiday of less than three months, speak to one of our team on 0345 600 2882.

If you are not up to date with repayments on other products that you have with us, for example your credit card or mortgage, please contact us on 0345 600 2882 to discuss options on all your products.

Please be aware that if you need independent support regarding your finances, you can get help from Citizens Advice or other debt counselling agencies.

What happens once I make a payment holiday request?

Where we can, we’ll start your payment holiday from your next payment. However, if your next payment is due in the next few days, your payment holiday may start the following month.

We’ll confirm your payment holiday by text if you have provided your mobile number and we’ll write to you with details of the payment holiday you’ve requested. This will be within 5-7 working days of you submitting your application. Please bear with us – we’re working hard to get back to you.

Please ensure that you read all of the information on this page so that you fully understand the implications of a payment holiday before submitting a request to us. If you require any further information or would like to speak to someone, please contact us 0345 600 2882.

Request a payment holiday

FAQs

  • When should I request a payment holiday?

    The most appropriate time for you to take out a payment holiday will depend on your individual circumstances.

    If you’re not yet sure how much the situation will impact your finances, or if you’ll be able to keep paying your loans, there’s still time to consider the best option for you. Discuss your options with one of our team on 0345 600 2882.

    If you are not up to date with repayments on other products that you have with us, for example your credit card or mortgage, please contact us on 0345 600 2882 to discuss options on all your products.

    Please be aware that if you need independent support regarding your finances, you can get help from Citizens Advice or other debt counselling agencies.

  • I have two loans, can I request a payment holiday on both?

    Yes. If you have two or more loans with us, you’ll need to submit a new request for each one.

  • What will happen if I'm still unable to pay at the end of the payment holiday?

    We’re facing unprecedented times due to the coronavirus outbreak. We’re here to support our customers through these difficult times. Towards the end of the payment holiday, we will contact you to confirm that your payment holiday is ending and agree next steps.

  • Can I request an early end to my payment holiday?

    Yes. If you would like to end the payment holiday early please contact our team to discuss your options on 0345 600 2882.