Support for your two-month personal loan repayment deferral

If you have a two-month personal loan repayment deferral due to the impacts of COVID-19, find out more about what it means for you and some of the things you could do.

I have a two-month personal loan repayment deferral – what does this mean for me?

It means that you don'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 will be capitalised. This means that the interest you’d have normally paid during the deferred period continues to accrue and is added to your outstanding personal loan balance, to be paid after the deferred period. In turn, it means your outstanding balance will increase, and you’ll pay more interest over the life of the loan.

After the deferral period, to help keep your repayments as similar as possible to what you’re currently paying, we’ll extend your loan term as required.
 

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 will be capitalised.

This means that the interest you’d have normally paid during the deferred period continues to accrue and is added to your outstanding personal loan balance, to be paid after the deferred period. In turn, it means your outstanding balance will increase, 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?

Your personal loan repayments will start again after the two-month deferral period, and your repayments will be adjusted accordingly.

We’ll extend your loan term by the months required to make sure repayments will remain similar to ones you’re currently paying.

If, at the end of your deferral period, you continue 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.