Credit holidays in 2022 and 2023 will be available from August. Borrowers who are in better financial condition should allocate the saved funds to overpayment of the loan – explained Credipass expert Hubert Reszka on TVN24.
President Andrzej Duda on Thursday, he signed a law on crowdfunding for business ventures and assistance to borrowers. The purpose of the act is to support for people who took out PLN mortgage loans.
Credit holidays. How to use?
As Credipass expert Hubert Reszka explained on TVN24, the offer is addressed to all those who have loans in PLN. – If we have more credits, we can take advantage of credit holidays only for one. It will only apply to a loan that meets our housing needs – he explained. He clarified that it was an apartment in which we stay on a daily basis, and apartments with a loan and intended for rent will be excluded from assistance.
– After July 28, when the law signed by the president enters into force, you should go to the bank or, if the bank offers such an option, through the mobile application, submit an application for suspension of the installment, i.e. taking advantage of these credit holidays. We must remember that we do it for each month separately. This year we can do it for August and September and the two months of the third quarter. We cannot do it once, but separately for each installment that we want to suspend – explained Reszka.
He added that in order to suspend such an installment, it should be reported to the bank before the installment payment date. – If we have an installment, for example on August 10, we have to submit such an application before August 10 – he said.
Credit holidays in 2023
He reminded that next year it will be different. – These credit holidays give us relief during one month in each quarter. Out of a maximum of 12 months, we can not pay this installment in four. Which month it will apply to is optional, but it should be one month in a quarter – explained the Credipass expert.
– Those who have more of this money and can afford it, can, or should, if possible, overpay the loan. So we do not pay this installment, but we do not consume this money, but spend it on repayment of the capital. (..) When I am talking about what is the best option, it is best to overpay the loan and shorten the period. If we can afford it, please keep the current installment, but we want to shorten the period. This is the most profitable option from a financial point of view. The second option is that we overpay the loan and the installment is reduced – he said.
The expert noted that the consequence of taking advantage of credit holidays is “extending the loan period by the months in which we used this solution”. – Our loan will be extended by a maximum of eight months. However, we, as consumers, do not bear any costs – he explained.
When asked why banks do not like this solution, he replied that “nothing is for free”. – The cost of this solution is passed on to the banks. Their capital, which they lent us, is not working during these credit holidays. This is very different from the traditional credit holidays offered by banks. They say, “okay customer, you may not pay the installments, but you have to pay interest” because they earn interest on the interest. They have it suspended here. There is simply an extension of the time and for this maximum period of eight months, it can be said that their capital is not working – pointed out the TVN24 guest.
Credit holidays – what is it?
Credit holidays mean the suspension of the obligation to make payments to which the borrower is obliged under the concluded mortgage contract, which is not a foreign currency loan. Importantly, the period of suspension of the performance of the contract is not treated as the loan period, therefore the loan period and all dates provided for in the loan agreement will be extended accordingly.
The vacation will apply to both the capital and interest part of the installment, and the repayment date is to be postponed without additional interest.
During the suspension period, only insurance fees related to the loan agreement will be charged. Their amount is to be specified by the bank in the confirmation of the delivery of the application.
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