Personal Loan Hold? Find Relief Fast (2026 Guide)

Life's unexpected twists and turns often leave us juggling financial commitments we hadn't planned for. If you're feeling the pinch and wondering if you can put your personal loan on hold, you're not alone. Many Australians are in your shoes, seeking temporary relief without jeopardising their financial futures.

Understanding Personal Loans and Payment Holds

Before delving into the possibility of putting your personal loan on hold, it's crucial to understand what this entails. A personal loan is a fixed amount of money borrowed from a financial institution, which is then repaid in regular instalments over a set term. Interest rates on personal loans in Australia typically range from 6.49% to 12%, depending on your credit score and the lender's terms.

When you talk about putting a loan on hold, you're essentially asking for a temporary suspension of your repayment obligations. This period is often referred to as a "payment holiday" or "deferment." During this time, you may not be required to make regular repayments, but it’s important to note that interest may continue to accrue, increasing the total amount you owe.

Options and Requirements for Pausing a Personal Loan

Not every lender offers the option to put a personal loan on hold, and those that do will have specific criteria and terms. Here's what you need to know:

Option	Eligibility Requirements	Potential Costs
Payment Holiday	Typically need to prove financial hardship due to job loss, illness, or other significant life events.	Interest accrual continues; potential fees for deferment.
Loan Restructuring	Good repayment history; willingness to extend loan term.	Extended interest period, may incur restructuring fees.
Interest-Only Payments	Temporary income reduction; short-term financial issues.	May result in a higher total payment over time.

Lenders like those accessible through Esteb and Co's panel of 83+ lenders will have varying policies, so it’s advisable to check directly with your lender for the most accurate information.

Steps to Request a Loan Payment Hold

If you're considering requesting a hold on your personal loan, follow these practical steps:

1. Assess Your Financial Situation: Determine how long you need relief and what your financial outlook is.
2. Contact Your Lender: Reach out to your lender's customer service or hardship team to discuss your situation.
3. Gather Documentation: Be prepared to provide evidence of your financial hardship, such as termination letters, medical certificates, or other relevant documents.
4. Submit a Formal Request: Complete any necessary forms or applications as required by your lender.
5. Review Terms and Conditions: Carefully read the terms provided by your lender regarding the payment hold, including any interest implications or fees.
6. Confirm Agreement: Once you agree to the terms, ensure you receive confirmation in writing that the payment hold has been approved.

Expert Tips and Considerations

Here are some expert tips to consider when thinking about putting your personal loan on hold:

• Consider the Long-Term Impact: While a payment hold can provide immediate relief, understand that it may increase the total cost of your loan.
• Explore Alternatives: If possible, consider other options such as refinancing or loan restructuring. Esteb and Co can help you explore options with their extensive lender network.
• Maintain Communication: Keep an open line of communication with your lender. They may offer additional support or alternative solutions.
• Plan for the Future: Use the payment hold period to reassess your finances and create a budget that will support your repayments once they resume.

Frequently Asked Questions

Here are some common questions related to putting a personal loan on hold:

• Can I put any type of personal loan on hold? Not all lenders offer this option, and it often depends on the type of loan and your financial circumstances.
• Will my credit score be affected? Generally, a payment hold itself does not affect your credit score, but missed payments prior to approval might.
• How long can I defer payments? The duration of a deferment varies by lender, typically ranging from a few months to a year.
• Are there fees associated with deferring a loan? Some lenders may charge fees or continue to accrue interest during the deferment period.
• What if my situation doesn’t improve? If your financial situation does not improve, it’s crucial to communicate with your lender as early as possible to explore other options.
• Can Esteb and Co assist with finding flexible lenders? Yes, with access to over 83 lenders, Esteb and Co can help you find a lender that offers flexible repayment options.