Pausing loan payments during coronavirus
You can pause your loan payments during coronavirus for up to 3 months, if you’re eligible.
The Financial Conduct Authority (FCA) announced that it was introducing new guidance for UK banks to help support customers affected by coronavirus.
Monzo loan customers affected by coronavirus can request a temporary payment break from their monthly loan repayments for a period of up to 3 consecutive months.
Eligible customers can take one break of up to 3 months
Make sure you ask for this temporary support when you really need it. If you think you can manage now, but your circumstances will get worse in the coming months, it might be better to wait to take a payment break until you really need it. Coronavirus-related payment breaks of up to 3 months will be available until 14 July 2020. You can take a payment break for a maximum of 3 months from the date you contact us, and only once in 12 months.
A payment break can make your loan more expensive in the long term
We’ll keep charging interest on your loan during your payment break, so your loan could end up being more expensive in the long term. So please consider whether a loan payment break is the right option for you before getting in touch.
- Only ask for a payment break if you need immediate and temporary financial assistance
- Only ask for a payment break if you can afford the increased interest on your future repayments
- If you can afford to make repayments, even if it’s a smaller amount than usual, you should continue to do so
- Make sure you’re requesting a payment break when your finances are most affected by coronavirus
If you’re eligible and decide that a payment break’s right for you, we won’t make any changes to the way we’re reporting your repayments on your credit file. For example, If you haven’t missed any payments before taking a payment break, you’ll be reported as up to date. If you’ve missed a payment though, we’ll continue to report you as being behind unless this changes.
Please get in touch if you’re worried about being able to make payments
If you’re worried about being able to make loan payments and not sure if you’re eligible for a payment break, please chat to us in the app so we can help:
- Tap the Help icon in the menu bar
- Search ‘pausing loan payments during coronavirus’
- Tap chat to us at the bottom of the article
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