Support for your two-month personal loan repayment deferral

If you deferred your personal loan repayments for two months due to the impacts of COVID-19, find out more about what that means and what to do if you need additional support.

What does the two-month personal loan deferral mean for me?

It means that you didn’t need to make personal loan repayments for the two-month deferral period.​

It’s important to note that, by deferring your repayments, the interest was capitalised. This means that the interest you’d have normally paid during the deferred period continued to accrue and was added to your outstanding personal loan balance, to be paid after the deferred period. In turn, it means your outstanding balance increased, and you’ll pay more interest over the life of the loan.​

We've extended your loan term by the months required to make sure your repayments remain similar to the ones you were previously paying.

Need additional support?

If you need additional support and are experiencing financial hardship, please contact us on 13 17 19 to discuss the support options available and what they mean for individual circumstances.

FAQs

Answers at your fingertips

1

What’s interest capitalisation?

Deferring your personal loan repayments means that the interest was capitalised.​

This means that the interest you'd have normally paid during the deferred period continued to accrue and was added to your outstanding personal loan balance, to be paid after the deferred period. In turn, it means your outstanding balance increased, and you’ll pay more interest over the life of the loan.​

For example, if you borrowed $30,000 for a personal loan with five years remaining at an interest rate of 11.99%, and you deferred the repayments for two months, you would pay an extra $930 in interest and your loan would be extended by four months. The actual cost to you will depend on your own individual circumstances.

2

What happens to my repayments at the end of my deferral period?

At the end of your personal loan deferral period, you'll need to start making repayments again. We have extended your loan term by the months required to make sure your repayments remain similar to the ones you were previously paying.​

If, at the end of your deferral period, you’re continuing to have difficulty making your repayments, you can talk through your options with us.

How can we help?

You can message us in the Bankwest App or online banking, or you can call us - we’re here 24/7.