If you have a loan with FNB and going through a hard time, the bank can give you a payment holiday. This guide will take you through how FNB payment holiday work in South Africa.
In life, there are several instances or situations where you may lose your job, have a pay cut, or be sick and unable to meet the monthly loan payment requirement.
What Is Payment Holiday
FNB understands such circumstances may arise, thus offering its customer a payment holiday.
However, the payment holiday doesn’t mean you will not pay the loan.
It is only for a short person where you will go without paying but resume paying.
However, it is important to note that a payment holiday can lead you to a debt problem where you are unable to manage it.
Hence it is essential to understand how FNB South Africa payment holiday works before requesting the FNB for a payment holiday.
Furthermore, understanding how FNB South Africa payment holiday work will evaluate if it is a suitable option for you or not.
How Do FNB Payment South Africa Holidays Work
First of all, it is worth noting that not everyone qualifies for the FNB payment holiday.
For example, if you are among those who are self-employed, you will not qualify because of strict insurance regulations.
In addition, if you are among people who are unable to meet their monthly loan payment, you don’t qualify.
What it means you need to have a good credit score to qualify for the FNB payment holiday.
If you qualify for the FNB Payment holidays, it will serve as a quick fix for short-term financial difficulties.
The bank will allow you not to pay your loan for a period of 3 months once, and it is after your application is accepted.
Your credit value will not be affected for that time, and you will not be paying the monthly payments.
Banks will, nevertheless, charge interest as usual.
More so, it will continue to compound that interest rate.
Account charges continue to apply, and interest rates will continue to compound.
It means you have more than the original total of your debt.
FNB is simply extending the loan terms but not writing off the loan.
The benefits of FNB Payment holidays are that it offers their customers relief, but the effects can hurt them in the long term.
Also, the bank offers you a humble time to think about how you will repay the loan.
However, even though you are given a payment holiday, you are also increasing the cost of your loan and paying more interest above the interest already specified.
That is how FNB South Africa payment holiday work.