We welcome you to another FNB Guide with details about how FNB Payment break work in South Africa.
Since the time Covid-19 entered South Africa, it has caused financial difficulties.
It is a situation that led to many people with FNB loans unable to meet their monthly installments.
First National bank came up with a payment break solution to help anyone unable to meet the monthly requirement.
If you are among those people or are searching to understand how FNB payment breaks work, this article is right for you.
In this article, you’ll find the meaning of a payment break, the implication of taking the break on your loan, and who this payment break is for.
What is FNB South Africa Payment Break
The FNB payment break refers to an agreement between you and the bank not to pay your loan for a specified period.
The FNB South Africa payment break is usually three months, but you can negotiate time with the bank.
During the break, you will not pay the monthly installment, and your credit score will not be affected.
It is the right thing to do if you are struggling to pay your monthly loan installment, and the bank will not add any arrears to your account or penalties.
You will get a short period to strategize how you are going to pay your loan.
How Does FNB Payment Break Work In South Africa
If you wonder how the FNB payment break works, you have come to the right place. First of all, you have to apply for the payment break.
The bank will evaluate your application and may or may not approve the application.
For your application to be approved, you have to meet the qualifications.
First, this offer is meant to help customers minimize the financial effect of COVID-19.
You have to demonstrate to the bank you are financially affected by the cover-19; hence cannot pay your monthly loan installment.
Second, you need to have a clear payment history and have shown good payment.
This exclusion also extends to fixed-term credit arrangements, such as a Personal Loan.
If you meet these, your application will be approved, among other qualifications to be considered by the bank.
Although a Payment Break on a fixed installment credit agreement can seem like a lifeline, it’s critical to consider the long-term implications.
It would help if you tried to exhaust all other options before considering a Payment Break.
Credit life insurance is another choice to consider, particularly if you have been laid off or placed on unpaid leave for a short period.
However, if you’re having financial difficulties for other reasons, a Payment Break may be worth exploring.
How do I apply for a payment break at First National Bank?
If you want to apply for the FNB payment break, here is what you need to do:
- Use the FNB App
- Dial the Cellphone banking code *120*321#
- Contact the FNB customer care on 087 730 5596.
- Apply at your nearest FNB branch.
That is how the FNB South Africa payment break work.