Credit, even at a small amount, is always a burden on home finances. Temporary problems caused, for example, by illness can happen to any borrower. Regaining borrowed money by the bank has not been as easy for them as it used to be for some time.

Therefore, they have become more flexible in relation to customers who have temporary problems with loan repayment. Among the various solutions that they offer their clients are, among others, credit holidays. What are they about? Are they beneficial for borrowers?

How long can your credit vacation last?


Credit holidays are a periodic suspension of loan repayment. In most banks, several installments can be suspended. The number of installments that can be suspended varies from bank to bank. For example, some branches offer loan suspension for one month once a year. Others allow for a loan holiday of up to 6 months, but this option can be used once for the entire loan period. the longest period you can suspend your loan repayment is 12 months. However, it should be remembered that this option is not always available. If you want to have this type of collateral for the future, information on the possibility of using a credit vacation must be included in the loan agreement.

What documents need to be provided to the bank

There are currently banks in the market where even borrowers do not have to justify why they would like to take credit holidays. However, every borrower should think very seriously about loan vacations, because they can usually be used only once when paying back the loan.
The period for which the loan will be deferred and the rules on which it will have to be repaid later is always a matter determined individually between the borrower and the bank. However, there is one key point that you cannot ignore when considering a credit vacation. By using them we will no longer be able to be late with the loan installments. Such behavior is not tolerated by any bank and usually ends with termination of the loan agreement. If you have problems paying back the loan, check also what documents you need to change the terms of the loan.

Are credit holidays paid?

Credit holidays are free at most banks. Because there are also banks that charge a commission for their granting, let’s check what it looks like in the bank where we have a loan. It is worth remembering that credit holidays will always extend the loan period. We will certainly not run away from paying back the loan. Let’s think about whether we really need to use them. Maybe our situation is not bad enough that we could not cope with paying off the loan without credit holidays.