Banking & Fintech

Credit holidays

The Community Financing for Business Ventures and Borrower Assistance Act has been finalised. The Act, providing for, among other things, so-called ‘credit holiday’, is expected to come into force within 14 days of promulgation.

Credit holidays – rules

A consumer applying for a credit holiday will have to submit an appropriate application. The relief will only be available to those who have been granted credit in PLN. From 1 August 2022, the consumer will be entitled to postpone repayment of four loan instalments until the end of the year. The credit holiday is only available in respect of a contract concluded for the purchase of a property intended to meet one’s own housing needs. It can be submitted in writing or via electronic banking. The bank will acknowledge receipt of the application within 21 days and indicate the period for which the credit repayment has been suspended. In the application, the periods for which you want to suspend the credit repayment should be precisely indicated.

A total of 8 instalments can be covered by a credit holiday. However, the law introduces deadlines:

1) from 1 August 2022 to 30 September 2022. – a maximum of two instalments;

2) from 1 October 2022 to 31 December 2022. – a maximum of two instalments;

3) From 1 January 2023 to 31 December 2023. – one monthly instalment in each quarter.

Restrictions

A credit holiday means that you will automatically extend the term of your credit. Please note that credit holidays cannot be taken advantage of by those with foreign currency loans, denominated or indexed to foreign currencies. Credit holidays can only be used for one loan. In addition, they only cover loans the financing of which is intended to meet one’s own housing needs (and not if the property is purchased for rent, for example). Borrowers who have concluded a loan agreement after 1 July 2022 may also not benefit from the holidays.

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