Payment Holiday Loans
Many loans, particularly unsecured loans, offer an optional payment holiday, usually at the start of the loan.
This holiday means that you don't have to start repaying your loan immediately, which can be very convenient in some circumstances.
For example, if you're using your loan for debt consolidation, it gives you a bit of breathing space to clear all your old debts and make final repayments before having to start making payments on your new loan.
Flexible Loans
Loans with a payment holiday at the beginning are also known as deferred loans, but some are more flexible in that you can take your payment holidays at any time.
This is useful if you're short of money at certain times of year, such as around Christmas, as you can temporarily suspend your repayments to give you a bit more spare cash.
Just how flexible this kind of repayment break is will vary from lender to lender, but generally you'll be able to miss a certain number of months within any single 12 month period.
Costs
Although you won't have to make any repayments during your payment holiday, you'll almost always still be charged interest on the balance of your loan. This will mean that the amount you owe will actually increase during your repayment break, which is something to bear in mind when making use of the facility.
Listed below are some of the most popular loan providers on this site who offer payment holidays.
Unsecured Loans with a Repayment Break Facility
| Lender | Payment Holiday Details | Typical Rate | Maximum Loan Amount |
|---|---|---|---|
| British Gas | 3 months | 6.2% | £25000 |
| The AA | 3 months | 7.2% | £25000 |
| Sainsbury's Loans | 3 months | 7.3% | £25000 |
| Intelligent Finance | 3 months | 7.4% | £25000 |
| Halifax Loans | 3 months | 7.7% | £25000 |
| Bank of Scotland | 3 months | 7.7% | £25000 |
| Tesco Finance | 2 months | 7.9% | £25000 |
| Britannia Loans | 3 months | 7.9% | £25000 |
| Norwich Union | 3 months | 7.9% | £25000 |
| Liverpool Victoria | 3 months | 7.9% | £25000 |
| Post Office Loans | Up to 2 payment holidays a year | 7.9% | £25000 |
| Marks and Spencer Loans | 3 months | 8.9% | £20000 |
| Egg Loans | Up to 3 months in any 12 month period | 9.9% | £25000 |
Secured Loans with Deferred Repayment or Payment Holidays
| Lender | Payment Holiday Details | Typical Rate | Maximum Loan Amount |
|---|---|---|---|
| Looking for Loans | 5 | 10.4% | £75,000 |
| My Sort of Loan | 6 | 10.9% | £250,000 |
| Loan Line | 6 | 10.9% | £100,000 |
| Imagine Finance | 4 | 10.9% | £250,000 |
| First Aid Finance | 10.9% | £250,000 | |
| E-Loan.co.uk | 6 | 11.0% | £1,000,00 |
| Loans.co.uk | 5 | 11.1% | £75,000 |
| 24 Hour Loan | 3 | 11.2% | £- |
| E-Loanshop | 5 | 12.6% | £75,000 |
| Loans4 | 3 | 12.9% | £- |
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